Saturday, February 8, 2014

Subsidized car parks encourage car ownership in Singapore

Big Idea No. 1: A 'less-car' Singapore: "ONE little known fact about Singapore is that it has one of the highest car ownership populations in the world for a city. (Repeat: For a city, and not for a country.)

Mr Charles Chow, who blogs on transportation issues, says the following: ''There are roughly 550,000 to 600,000 private vehicles in Singapore. Forty-five per cent of households in Singapore own at least one car. This implies that out of the approximate 1.25 million households in Singapore, about 560,000 households have at least one car. There are 200,000 private dwellings in Singapore and slightly more than one million Housing and Development Board (HDB) flats. My simple back-of-the-envelope calculation therefore shows that more than 300,000 HDB or public housing dwellings own at least one car. Since HDB dwellings are heavily subsidised, the fact that they are also given abundant and cheap residential HDB carparks represent a further subsidy.''

Mr Chow also notes the contrast between Singapore and other cities: ''From London to Hong Kong, only the top 10 to 20 per cent of household dwellings come with carparks. Without a carpark, residents just simply cannot buy a car. In Singapore, the Government has so generously provided abundant and cheap residential carparking in the HDB estates over the years. From New York to Tokyo, office buildings are deliberately built with few or no carparks.

''In Singapore, that is not the case. Even middle managers can drive their cars to work and park their cars in office building carparks for the whole day.''

Having lived in New York for 10 years, I can only agree with Mr Chow when he says: ''Anyone who has lived in New York or Tokyo would know that even managing directors of companies, senior bankers and lawyers take public transportation to work. In Singapore, even middle-level executives working in Raffles Place drive to work. Is the Singaporean middle-level executive better paid than a senior banker in New York?''"

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