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COE review: MOT considering a transport grant

The Government is studying the option of a transport grant with more details to be provided later, said Minister for Transport Jeffrey Siow on Tuesday (Nov 3).He was replying to 13 parliamentary questions from members of parliament on the ongoing Certificate of Entitlement (COE) review exercise, which just concluded its public consultation exercise on categorisation on Monday.MPs Jessica Tan (East...

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COE review: MOT considering a transport grant
COE review: MOT considering a transport grant

The Government is studying the option of a transport grant with more details to be provided later, said Minister for Transport Jeffrey Siow on Tuesday (Nov 3).

He was replying to 13 parliamentary questions from members of parliament on the ongoing Certificate of Entitlement (COE) review exercise , which just concluded its public consultation exercise on categorisation on Monday.

MPs Jessica Tan (East Coast GRC) and Tin Pei Ling (Marine Parade-Braddell Heights GRC) had raised questions about the affordability of car ownership for larger Singaporean families with transport needs, with Tin also suggesting for more to be done for large families with car needs.

In his reply, the transport minister said he recognises that larger families, especially those with young children, may find travelling together by public transport difficult.

But he also reminded the house that there would be those who do not plan to purchase a car.

"In supporting such families, we must consider not just those who plan to purchase a car, but also those who do not plan to do so, and who rely on public transport, taxis, private hire cars, or shared cars," Siow pointed out.

To this end, he announced that the Government is studying the option of a transport grant, with more details to be provided later.

Earlier in his response, Siow also put Singapore's car ownership situation in context, noting that there are about 660,000 cars and 1.5 million households in the country.

Meanwhile, roads already occupy more than 12 per cent of Singapore's land area, he said, adding that Singapore does not have enough land for every household to own a car.

Public transport first

Turning to public transportation, the minister explained that the Government has invested heavily to build up a system that is accessible, reliable and affordable because while not everyone can drive, or wants to own a car; everyone can take public transport.

He also pointed that COE revenues have averaged about $5 billion over the past decade, but the Government spends around $6 to 7 billion a year on public transport, including subsidies to keep fares affordable.

Meanwhile, recognising that car rides may be more convenient when bringing elderly parents to see the doctor, or when travelling with young children, the taxi and private hire car population has grown from 28,000 in 2013 to about 70,000 last year to meet growing commuter demands.

"These are more affordable options to enjoy the convenience of travelling by car, without the expense of owning one," he explained.

However, the COE system will still need to be refined due to market dynamics or technological change, the minister acknowledged.

On high COE prices, Siow said that he recognises Singaporeans' concerns.

"While we will try our best to refine the COE system for car buyers, my ultimate responsibility is to build a transport system that serves all Singaporeans," he added.

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