![]() ![]() This placed an increasing strain on road capacity and caused congestion. The landmark policy emerged against a backdrop of rising affluence which led to rapid growth in the vehicle population. To own a vehicle, motorists would have to bid for a Certificate of Entitlement (COE). Unlike other proposals that stem from fear and anxiety about overcrowding, a COE system for immigration would be based on sound free market principles, ensuring sustainable population growth for future generations.On 1st May 1990, the Vehicle Quota Scheme (VQS) was introduced, limiting the number of vehicles on Singapore’s roads. Firms will be incentivised to use new technologies and automate, emerging leaner and more competitive.Ī parliamentary committee in 1999 affirmed the effectiveness of the COE, noting that competitive bidding was the most efficient and equitable means of allocation. Where value is insufficient to justify a winning bid, there would be a real economic incentive to increase productivity, a top priority in the future economy. When employers bid for work passes for their foreign employees, the highest bids will be for the most productive workers that contribute most to the company, ensuring work passes go to their highest value. More significantly, economists suggest this could promote economic growth and efficiency. Given the predicted rise in expenditures from an ageing population, additional revenue could be indispensable in allowing us to reduce or defer other taxes. The most obvious benefit is the potential revenue. Subtracting citizens and permanent residents, the remaining quota would be put up for auction. Just as it is possible to set a maximum vehicle population, a maximum population could be set that would preserve open spaces and the sense of comfort. Indeed, economists at the Institute for Labour Economics (IZA) have suggested that an auction system for immigration would promote economic growth, increase government revenue, and lead to a more efficient allocation. How can we keep population growth sustainable? The COE system offers a tried and true example of how this can be achieved. But even before Covid-19, many were concerned if our infrastructure could cope with an ever-growing population especially in areas like housing and transport. This is particularly relevant now because of the pandemic, where packed public transport and crowded shopping malls pose a serious risk. Since 1990, the population has almost doubled from 3 to nearly 6 million, with population density the second highest in the world at 7,894/kmsq. ![]() When former chief planner Liu Thai Ker led the development of the 1991 Concept Plan, he thought Singapore’s population would hit 5.5 million in 100 years. More than 30 years on the COE system has become a key pillar in Singapore’s traffic management strategy. In order to maintain a sustainable urban quality of life, it was necessary to limit the growth of the vehicle population to a level that could be supported by road infrastructure in land scarce Singapore. ![]() On 1st May 1990, the Vehicle Quota Scheme (VQS) was introduced, limiting the number of vehicles on Singapore’s roads. ![]()
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