Singapore to freeze number of cars in 2018

The cap in growth rate is for the government to expand current road network.

The Land Transport Authority (LTA) will stop vehicle growth for cars and motorcycles, or those in categories A, B, and D, starting February 2018.

According to a press release, 12% of Singapore's land area is taken up by roads. Due to land constraints and competing needs, the government finds it difficult to expand the current road network.

As a result, the vehicle growth rate from the current 0.25% per annum will be lowered to zero for categories A, B, and D. The growth rate for category C, or goods vehicles, will remain at 0.25% per annum to give way to businesses to improve their logistics systems.

LTA said the adjustments to the vehicle growth rate will not affect the supply of certificates of entitlement (COE), as the quota is determined by the number of vehicle deregistrations.

The agency added that the vehicle growth rate will be reviewed again in 2020.