Frequently Asked Questions

The ERP revenue collected goes to the Government’s Consolidated Fund to fund programmes that benefit Singaporeans. The annual amount collected is much less than what the government spends on road improvement projects. For example, the total amount collected for Financial Year 2009 and 2010 is about $149 million and $159 million respectively. In comparison, we have invested more to improve our road networks. The recently completed Woodsville Interchange Upgrading project costs $130 million and the Marina Coastal Expressway, which is currently under construction will cost $4.1 billion. ERP operating hours and charges are set based on traffic conditions. The amounts collected are a function of ERP operating hours and charges, as well as the traffic volume or number of vehicles passing through.

 

 

 

COE prices are determined by the interaction between demand and supply at each bidding exercise.

Demand can be affected by factors like the economic climate (whether the economy is rapidly growing or in financial recession), launch of new vehicle models, and competition among vehicle manufacturers among others. Supply of COEs is influenced by the allowable vehicle growth rate and the number of replacement COEs from vehicle deregistrations. The latter forms the bulk of the COE quota. Supply and demand are also related in that a significant portion of the demand will come from existing car owners who have or will deregister their existing cars around the same time.

The COE system helps prevent our roads from being gridlocked by setting a quota on the number of new vehicles to be registered in Singapore each year.  Once the COE quota is fixed, the COE price is determined by market forces such that demand can match the supply available. The lower the demand, the lower the COE price and vice versa. To intervene and manage the price of COEs will lead to a situation where we would have to release more COEs if COE prices rise significantly. Doing so would undermine the larger transport aim of having the vehicle population grow at a sustainable rate and preventing gridlock.

Reduction in ARF and Road Tax may lead to a rise in the demand for cars. The COE prices may, as a result,  rise correspondingly or even higher to compensate for any reduction in ARF and Road Tax.

Under the Road Traffic Act, the Police will investigate if reckless cyclists endanger pedestrians or other road users, and physical injury is involved. First time offenders may fined up to $1,000 or jailed up to 3 months for riding in a disorderly manner and without due regard for the safety of others. Those who commit a second or subsequent offence may be fined $2,000 or jailed up to 6 months.