Electric vehicles (EV) are gaining traction across the world because of the growing dangers of climate change and increasing petroleum prices. In Singapore, the government has recently announced that it will be phasing out all of the traditional cars on its streets by 2040. Several incentives are to be given out to all drivers who will adopt electric cars early on.
But, will there be a huge impact if electric cars are adopted in Singapore? Here are some of the changes that we can expect:
1) Infrastructure Changes
To ensure that everyone can use their electric cars, Singapore will have to create charging points to help people recharge their cars faster and lessen the worry of running out of power. The country’s target is to increase the charging infrastructures to 28,000 by the year 2030.
The country must also improve infrastructure to reduce congestion problems by improving public transport. This will make travelling easier for many commuters and safer as fewer air emissions are produced.
According to the Budget 2020 announcement, the government also plans to create several programs for the country like flood prevention and coastal shores protection.
2) Tax Changes
For people to welcome electric vehicles, they will need to be enticed to try it out. As a result, the government will provide several tax incentives for anyone who will support the program, especially those who will adopt it earlier.
The most notable program that will provide this incentive is the new Vehicle Emission Scheme (VES) which will encourage drivers to shift to electric vehicles. The program is scheduled to be extended to cover light commercial vehicles in the next coming years.
Aside from the VES, people can also avail the EV Early Adoption Incentive to save up on electric car purchases and the taxes introduced to cover the excise duty that the government gets from fuel sales. It is said that they will be introducing a lump sum tax on electric cars starting from 2021.
3) New Opportunities
Even if the road infrastructures to accommodate electronic cars will take a while, the early adoption of electric vehicles may also provide new opportunities. Some industries can now reduce the costs of maintaining a traditional fleet of cars since the VES will cover light commercial vehicles. They will now be able to switch to electric cars and help the market grow even further.
Final Thoughts
Electric cars will certainly make its splash in Singapore as people learn more about its benefits. However, will it really make a huge impact? The transition will be slow initially because the government still needs to revise numerous details and encourage people to be more open about it. But once the right infrastructures are in place and people start adopting these cars, it will improve the air quality in Singapore, and it can contribute in protecting the people and the country from the effects of climate change.
At Drive Ride Buddy, as petrolheads, we still love the sound of an internal combustion engine with actual gear change. However, we see strong benefits in electric vehicle and how it will be better for all of us in the long run. Stay tuned, as we bring more interesting content on electric vehicles.