According to the country’s Land Transport Authority (LTA) the reason for the reduction of cars in the city is due to scarcity of land and public transport upgrades.
On how the country intends to achieve this goal, the LTA said the country will implement a policy that will elevate the cost of owning a car in the country.
The LTA said the new cap won’t significantly affect the number of available COEs, because most of them aren’t newly created, and instead come from deregistered cars.
The new growth cap is slightly lower than the existing 0.25% limit, which has been in place since 2015. It applies to private cars and motorcycles, but not to goods vehicles and buses.