LTA said that another reason for the progressive injections of COEs is due to changing travel patterns post-pandemic.
Since the COVID-19 pandemic, travel patterns have evolved, said LTA, driven in part by an increase in flexible work arrangements.
From 2019 to 2023, total vehicle mileage decreased by around 6 per cent.
Public transport accessibility has continued to improve, said LTA, as the rail network has expanded by 18 per cent from 228km in 2019 to around 270km today with the opening of the Thomson-East Coast Line Stages 1 to 4. There will also be further enhancements to the MRT network over the next few years.
“Given the recent vehicle usage trends and improved capabilities of ERP 2.0, LTA will progressively inject up to about 20,000 additional COEs across the vehicle categories from February 2025, over the next few years,” it said.
The last time such a move was made was between 1997 and 2003, when an additional 10,500 COEs were introduced, following the introduction of the present ERP system.
VEHICLE GROWTH RATE TO REMAIN AT ZERO FOR MOST CATEGORIES
The move to increase COEs will be on top of the existing allowable vehicle growth rate (VGR).
The VGR is the annual growth rate of the total vehicle population in Singapore, and is reviewed every three years. It is separate from the progressive introduction of the additional COEs, which can be applied at different rates and timings across the next few years.
LTA announced that the VGR for Categories A, B and D will be kept at 0 per cent per annum, while the VGR for Category C will remain at 0.25 per cent per annum from Feb 1, 2025 until Jan 31, 2028.
Category A covers cars 1,600cc and below with horsepower not exceeding 130bhp. Larger and more powerful cars fall under Category B. Category C is for commercial vehicles and buses, and Category D, motorcycles.
Except for Category C vehicles, the VGR has been set at 0 per cent since 2018.
“Our long-term vision remains centred on ‘car-lite’, said LTA.