The Straits Times
Published on Dec 31, 2012

High car prices encourage usage, and congestion


I AGREE with Mr Daniel Sim ("Target usage, not ownership of cars", last Saturday) that the Government should stop penalising people for mere ownership of a car.

A certificate of entitlement costing around $80,000 is valid only for 10 years. After paying a one-time premium, the owner will feel that he incurs a loss each day he leaves the car unused.

Why would existing car owners switch to public transport when they have already paid so much for the car?

With such a high sunk cost, the system encourages usage, which is what leads to road congestion, the very problem the system is supposed to be tackling.

Lai Ming Shan