With the new initiative coming from LTA which will take effect from Feb 2018 for private passenger vehicles (Cat A and B) and Motocycles (Cat D). The growth rate for goods vehicles and buses in Category C will remain unchanged at 0.25 per cent until the first quarter of 2021.

LTA said this is to provide businesses more time to improve the efficiency of their logistics operations and reduce the number of commercial vehicles they require.

LTA said the move was “in view of Singapore’s land constraints and our commitment to continually improve our public transport system.”

“Twelve per cent of Singapore’s total land area is taken up by roads,” it added. “In view of land constraints and competing needs, there is limited scope for further expansion of the road network.”

In view of such implementation would it force business owners to increase their fleets of commercial vehicle before the policy sets in? With the ever increasing 3PL (3rd party logistic) services to fulfill growing e-commerce businesses, I reckon business owners will have to strategically align their business plan for the implementation.

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