The Singapore government has some pretty harebrained ideas at times, but giving car owners the option to exchange their Preferential Additional Registration Fee (PARF) and the Certificate of Entitlement (COE) rebates for cash has bought it to a whole new level.
I know that most Singaporeans will love this new scheme but I don’t. The reason is simple; the change is to encourage motorists to give up their cars and switch to public transport.
Just how does this money encourage people to do that?
I mean what is to stop these people from using these cash rebate and buy new cars? Nothing! If anything, this new policy might increase the car population in Singapore. Does anyone truly think that people will save the money in the bank?
With a large amount of cash on hand, what will most Singaporeans do with it? They will take it and go buy things; things like new cars! In fact, with the new-found liquidity, owners might take longer, heavier loans from finance companies and increased their debts. All in all; this is a terrible, terrible idea.