A COE benefits more Singaporeans if given to a private-hire car: Jeffrey Siow
In an interview with local media on Jun 11, he countered the idea that PHCs are 'bidding up the prices of the COEs and therefore depriving Singaporeans of owning a car'.
As PHCs provide access to private transport on a pay-per-use basis, they drive down demand for COEs, he argued. Without PHCs to meet the needs for private transport, more people would want their own car.
'If you have one COE left to allocate, is it better… to give it to a private car owner who then drives maybe two trips a day and leaves the car in the garage, or is it better to share the car among a much larger group of Singaporeans who can have access to the use of a car when they need it? Surely it must be the latter, right?'
In the long term, Singapore could review the COE system as a way of allocating vehicles, he added.
'But my guess is that in the short term, there won't be major tweaks.'
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
Asked how Singapore will continue to manage traffic congestion, Siow said the current focus is completing the roll-out of the Electronic Road Pricing (ERP) 2.0 system, while autonomous vehicles (AVs) could help in the longer term.
'I think the focus now is just sort of replacing (ERP 1.0), making sure that we get the replacement on track and (making) sure that every car is installed. As I said, that will take some time,' he said.
'After that, we can take a look at what to do in the next phase,' he added, without elaborating.
The first-generation gantry-based ERP system is being replaced with satellite-based ERP 2.0 that allows for distance-based charging. Around 500,000 vehicles have been fitted with the new system as at June 2025, and the roll-out is expected to be completed by 2026.
Last year, then-transport minister Chee Hong Tat said the authorities were open to a one-off increase in the total vehicle population, spread over a few years, with higher usage-based charges to prevent congestion – but such a move would need to be carefully studied.
In thinking about the next phase of private transport policy, the starting point is the need to limit the total vehicle population, said Siow.
Then the consideration is what to do 'at the edges, at the margins… to adjust that top-line number', he said.
AVs could be a 'game changer' for private transport if they eventually present a good alternative to owning a car, similar to PHCs now, he noted.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
8 hours ago
- Straits Times
More Singapore residents met CPF Required Retirement Sum when they turned 55 in 2024
Sign up now: Get ST's newsletters delivered to your inbox The retirement sum is used to join CPF Life, which provides members with monthly payouts for life starting any time from age 65 to 70. SINGAPORE – Singaporeans are putting funds aside to beef up their retirement safety nets, noted the Central Provident Fund (CPF) Board's 2024 annual report. It found that more members who turned 55 in 2024 had set aside their Required Retirement Sum than in 2023. Meanwhile, retirement payouts crept above $4 billion in 2024, while the amount of excess savings withdrawn by those 55 and above rose but remained below the 2022 high. There were 39,000 active members who turned 55 in 2024. Around 70 per cent of this cohort set aside the Required Retirement Sum, up from 67.6 per cent in 2023. These members either had the Full Retirement Sum (FRS) in CPF savings, or had at least the Basic Retirement Sum (BRS) and owned a property. Mr Bryan Chan, solutions lead at advisory firm Providend, said the data is encouraging as it shows the proportion has been increasing consistently from 63.6 per cent in 2020 to 70.5 per cent in 2024. Mr Alfred Chia, chief executive of advisory firm SingCapital, said that fewer than half of CPF members met the FRS a decade ago, so these numbers have shown a lot of improvement. Top stories Swipe. Select. Stay informed. Singapore 193ha of land off Changi to be reclaimed for aviation park; area reduced to save seagrass meadow Singapore PAP questions Pritam's interview with Malaysian podcast, WP says PAP opposing for the sake of opposing Singapore 1 in 4 appeals to waive HDB wait-out period for private home owners approved since Sept 2022 World Liverpool's Portuguese forward Diogo Jota dies in car crash in Spain Singapore Healthcare facility planned for site of Ang Mo Kio Public Library after it moves to AMK Hub Singapore $500 in Child LifeSG credits, Edusave, Post-Sec Education Account top-ups to be disbursed in July Business 60 S'pore firms to get AI boost from Tata Consultancy as it launches new innovation centre here The retirement sum is used to join CPF Life, which provides members with monthly payouts for life starting any time from age 65 to 70. The report also noted that $4.4 billion was disbursed to CPF members as retirement payouts, up 29.4 per cent from $3.4 billion in 2023. This worked out to a simple average of about $624 a month for each of the 588,000 members eligible for payouts, up from $552 in 2023 and $532 in 2022. Mr Chan noted that the CPF system is designed to cater to the basic needs of households in the second expenditure quintile. This refers to the group of households with the second-lowest spending in the population. He added that while CPF payouts provide a solid foundation for retirement, CPF savings could be supplemented with other streams of income for a complete retirement provision. Some CPF members might have topped up only to the BRS because they owned a property, so their payouts will be lower, but they have a roof over their heads, Mr Chan said, adding that there are other forms of financial assistance for those in tougher financial positions. Medical expenses are either subsidised or covered by schemes such as MediShield Life and MediFund. The Government has also provided help with general living expenses, such as through ComCare and CDC vouchers. While it aims to help Singaporeans and permanent residents build up their retirement nest eggs, the CPF system is flexible enough so that those aged 55 and above can make withdrawals for immediate cash needs. Members who have met their cohort's FRS can withdraw excess savings in their Ordinary Account (OA), while those who cannot set aside the FRS, or the BRS with a property, can still withdraw up to $5,000. The first group can make as many withdrawals as they like so there is no need to take out all the money at one go. There was $8.4 billion in such withdrawals in 2024, up 3.7 per cent from the $8.1 billion taken out in 2023, but below the high of $8.8 billion in 2022. Mr Chan said such withdrawals should not pose too much concern since these members have already set aside the required amount for retirement, and especially as they remain below 2022's record level. While the CPF is primarily for retirement, it is also designed to serve people's housing and healthcare needs. Members used $25.8 billion from their OA for homes in 2024, up 0.8 per cent from $25.6 billion in 2023. SingCapital's Mr Chia said CPF savings are for retirement, so members should consider using less of this money for their homes. Interest rates have come down, and home owners can borrow at fixed rates of as low as 2.2 per cent, he noted. A home buyer taking a housing loan at 2.2 per cent, while leaving savings in the OA to earn 2.5 per cent interest, has a 0.3 percentage point gain. And those CPF savings compound over time, Mr Chia added, noting: 'When people draw their CPF in and out, they lose the compounding effect.' There were 4.2 million CPF members as at Dec 31, 2024, with total balances of $609.5 billion. They earned $22.4 billion in interest on their savings, up 6.7 per cent from $21 billion in 2023.
Business Times
10 hours ago
- Business Times
New UK economic initiatives on government's first anniversary
THIS week, the UK government commemorates the first anniversary of its landslide election victory. Despite its big legislative majority, British Prime Minister Keir Starmer has had a bumpy year in power and is seeking to regain the initiative with major new economic initiatives. This includes a comprehensive industrial strategy and new trade plan, both released in late June. These documents are designed to enhance the attractiveness of the UK to international investors, including in the Asia-Pacific region, ahead of potential further economic turbulence in July as the 90-day US tariff pause is scheduled to come to an end, barring any further changes of policy from US President Donald Trump. The starting point for the 10-year industrial strategy is that the global economy has entered a new era, especially with the re-election of Trump last November. Yet, in this Vuca (volatile, uncertain, complex and ambiguous) landscape with new risks to UK security and living standards, there is also significant opportunity. The strategy highlighted plans to turbocharge development in eight high-potential economic sectors representing 32 per cent of the economy. These are: advanced manufacturing, creative industries, life sciences, clean energy, defence, digital and technologies, professional and business services, as well as financial services. The government believes the United Kingdom is well-placed to seize advantage in all of these areas as a relatively open, entrepreneurial and dynamic economy. This includes a significantly sized finance industry, as well as universities and scientific institutions that are all internationally competitive. Building on political stability Starmer also hopes that, for the first time in the post-Brexit era, the UK investment landscape can be boosted by newfound political stability. The current government may be the first to last a four to five-year parliamentary term, without any change of prime minister, since the coalition administration led by then-prime minister David Cameron from 2010 to 2015. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Building from this relative political longevity, the Starmer government wants to try to build a new, deeper relationship with businesses. This includes a 'more muscular approach from government… to back British businesses, invest in our comparative advantage and take punts in pursuit of growth and productivity'. To be sure, this is probably not heralding a return to the UK government approach in the 1960s and 1970s of so-called picking winners to help ensure specific companies gain a comparative advantage in key sectors. What it does amount to, however, is not only designating growth sectors like clean energy, but more decisively addressing related questions such as what regulatory climate is needed for the UK to thrive. Meanwhile, the trade strategy comes on the back of several recent international wins for Starmer in this area. That is, a trade deal with India, a Brexit reset agreement with the European Union and a tariff deal with the US. Beyond these, the new strategy seeks, in the midst of growing protectionism, to rejuvenate the ideas of Scottish economist Adam Smith who authored The Wealth of Nations in 1776 – for the mid-2020s. The Starmer government wants the country to rediscover its heritage as a 'great trading nation', leveraging UK strengths, including diplomatic and industrial. The government also wants to see old ideas updated, including transforming 'services trade from a so-called invisible add-on to the balance of payments… heralding it as the indispensable core of the UK's contemporary export earnings'. More targeted deals The focus of the UK strategy is not just major powers like the US and India, but also a wide range of middle economies around the world. These include both key emerging markets like the Gulf Cooperation Council states and Mexico, alongside industrialised economies such as Canada, Switzerland and South Korea. Reflecting recent think tank reports, the new trade strategy's focus is not only on comprehensive long-term trade agreements with key partners. The Tony Blair Institute for Global Change recently highlighted that only three new trade agreements were inked from 2020 to 2024, and these are expected to boost exports by a modest £9.5 billion (S$16.6 billion) in the long run. This underscores the poor match between trade agreements, which tend to be time-consuming and goods focused, and the UK's core strengths in services and digital trade, as well as diminishing returns on investments. Over the same period, however, successive UK administrations resolved some 640 market access barriers, whose strategic bilateral market gains increasingly have the potential to deliver higher value, faster. An example cited as good practice is the UK's digital economic agreement with Singapore, which leverages British strengths as a tech and services leader and was negotiated relatively quickly in 2022. So rather than doubling down on slow-moving and broad trade agreements, the new trade strategy advocates for more targeted services-orientated market access deals that can be negotiated faster and deliver bigger economic impact. Starmer is hoping that this economic blitz of new strategies can help the government regain its footing after a challenging first year. Amid potential new US tariffs turmoil this month, the Starmer team thinks more investors could perceive the UK as a safe haven. In part, this is because of London's status as Europe's key financial centre. The pound sterling is still the world's fourth-largest reserve currency after the US dollar, the euro and the yen, amounting to around 5 per cent of global foreign exchange reserves. In turn, the government hopes this could lead to a big political reset moment, before the summer legislative recess begins, so it could try to move back onto the front foot and deliver the prime minister's pledged 'decade of renewal' well into the 2030s. This is plausible, although the Starmer team remains buffeted by a range of challenges, including over its controversial welfare reforms. In this context, there is growing speculation in Westminster of a possible July cabinet reshuffle. Starmer could potentially move weaker-performing members of his top team, among them Chancellor Rachel Reeves, after her challenging year in office. Taken together, the one-year anniversary of Starmer's government therefore has the potential to be a tipping point as it seeks to reset itself after an uneven 12 months in power. While the administration has such a big majority it will likely serve a four or five-year term, its ultimate success still remains in the balance. The writer is an associate at LSE Ideas at the London School of Economics
Straits Times
11 hours ago
- Straits Times
1 in 4 appeals to waive 15-month wait-out period for private home owners approved since Sept 2022
Sign up now: Get ST's newsletters delivered to your inbox The 15-month wait-out period was part of a series of measures introduced to help cool the HDB resale market. SINGAPORE - About one in four appeals from private property owners seeking to bypass the 15-month wait-out period to buy a Housing Board resale flat has been successful, the Housing Board said. From the time the rule was introduced on Sept 30, 2022 until March 31, 2025, HDB received and processed about 5,500 appeals for a waiver. Around 25 per cent of these were approved, after careful assessment of each case. Extenuating circumstances of the flat buyers and their families are taken into account 'to ensure that applicants and families with genuine needs are given fair consideration', a spokeswoman for HDB told The Straits Times. When asked, the agency did not specify the typical reasons cited in appeals and the criteria used to assess them. The 15-month wait-out period was part of a series of measures introduced to help cool the HDB resale market , which was heating up partly due to demand from private property downgraders flush with capital. It also helps to prioritise public housing for Singaporeans with more urgent housing needs, HDB said. The rule applies to private property owners and ex-owners looking to buy a non-subsidised HDB resale flat. It does not apply to those aged 55 and over who are buying a four-room or smaller resale flat. Top stories Swipe. Select. Stay informed. Singapore $500 in Child LifeSG credits, Edusave, Post-Sec Education Account top-ups to be disbursed in July Singapore PAP questions Pritam's interview with Malaysian podcast, WP says PAP opposing for the sake of opposing World Liverpool's Portuguese forward Diogo Jota dies in car crash in Spain Business 60 S'pore firms to get AI boost from Tata Consultancy as it launches a new innovation centre here Asia US tariff deal provides relief for Vietnam, and a sting in the tail for China Singapore Scoot launches flights to Da Nang, Kota Bharu and Nha Trang; boosts frequency to other destinations Singapore Electrician who bit off part of coworker's ear during fight gets 6 months' jail National Development Minister Chee Hong Tat said recently that the rule may be relaxed before 2027, due to an expected rise in supply of new and resale flats . The HDB spokeswoman said there are early signs of moderation in resale price growth. 'We expect the market to further stabilise as more flats reach the Minimum Occupation Period (MOP) and enter the resale market over the next few years starting from 2026,' she said. 'We will also maintain a strong supply of Build-To-Order (BTO) flats to meet housing demand.' Shift in demand patterns Since the rule took effect, analysts have noted a marked impact on the resale market, particularly on the larger flats. Mr Mohan Sandrasegeran, head of research and data analytics at real estate firm Singapore Realtors Inc (SRI), noted that the number of five-room flats resold dropped by 22.5 per cent to 1,482 units between January and March 2025, compared with 1,913 units resold from July to September 2022, just before the 15-month wait-out period kicked in. Executive flats saw a steeper dip of 32.1 per cent in transactions between the two periods. The figures suggest that the wait-out rule has helped dampen demand from private property downgraders to some extent, said Mr Mohan. He added that the latest flash estimates for April to June 2025 released by HDB on July 1 showed resale flat prices continue to moderate, rising by 2.5 per cent in the first half of 2025 compared with 4.2 per cent in the same period in 2024. While the rule has helped cool demand, some private home owners facing unexpected life changes – such as job loss or financial strain – could benefit from more flexibility, said property analysts. Mr Eugene Lim, key executive officer at real estate agency ERA Singapore, said the HDB resale price index (RPI) slowed after the 15-month wait-out rule took effect on Sept 30, 2022, but picked up once eligible private home sellers re-entered the market in the first quarter of 2024. Resale transactions rose to 7,068 units from January to March 2024, with the RPI climbing 1.8 per cent quarter-on-quarter. The index rose another 2.3 per cent in the second quarter of 2024, which was close to the 2.6 per cent gain seen in July to September 2022, before the rule was introduced. Growth eased to 1.6 per cent in the first three months of 2025 , likely due to the February 2025 Sales of Balance Flats (SBF) exercise absorbing some demand, said Mr Lim. He has also observed that price growth in the HDB resale market has been increasingly driven by buyers favouring newer flats with longer remaining leases. This preference, especially among home owners looking to move to a flat that better suits their needs, has led to a divergence in price trends between 'younger' and 'older' flats. The agency's analysis showed that unit prices of newer flats – typically, those under 25 years old – have seen stronger appreciation compared with older flats. Mr Lim said lease decay concerns among home buyers have contributed to the faster appreciation for newer units, which are often priced at a premium. Lease decay is the erosion of a flat's value as the end of its 99-year lease approaches. He added that such buyer behaviour is independent of any possible revision to the 15-month wait-out policy and he expects it to remain a key driver of overall price trends. Between 2025 and 2027, more than 50,000 flats will be launched by HDB, including a growing number of Shorter Waiting Time flats and SBF, which will help to absorb demand that might otherwise flow into the resale market, said Mr Mohan. More flats will also hit the market as they complete their minimum occupation period (MOP) – a mandatory stay period (typically five years) before owners are allowed to sell them on the resale market. About 13,500 flats will reach their MOP in 2026, up from 8,000 in 2025. In 2028, this will rise to 19,500 flats. Mr Chee said he expects that the effect of a strong continued supply of new BTO flats and resale units would moderate resale prices, making it timely for the authorities to consider if the 15-month cooling measure should be partially or entirely removed.
