MAS had introduced new car loan curb to raise financial awareness of aspiring car owners.
The new car loan curbs will allow aspiring car owners to weigh the pros & cons of buying and having a car.
Although COE had limit the amount of cars on the roads but it had lost it's effectivness due to current credit market,loans could be easily obtained at a low interest rate which fuel the demand for cars.The result is ever increasing COE price which show no sign of receding demand for car ownership.
From individual point of view,car ownership have become a luxury that only the cash rich or well to do people could possess it.
However from national interest point of view,it will benefit the country in the long run in terms of productivity.
The number of cars on the road will determine how congested the roads will be during peak hours and which in turn affect the productivity of a Nation.For example the new NSE(North-South Expressway ) will be build to reduce travel time from Yishun to city approx 10 minutes.Let do the math for a year.Assuming a person drive a car and commute to & fro from Yishun to city .
One Day : Save 20 min
One Year: Save 5000min (250 days x 20min)
That will translate into 83 hours of time that can be use for more productive usage;spending more time with familiy,more personal time,more innovate ideas to generate or more time to rest instead wasting it on road congestion.
Let say 50,000 people use the NSE to commute to & fro .
One Day :Save 1000000 min (20 min x 50000)
One Year:Save 250000000 min(1000000 x 250 days )
The mutiple effect is astonishing.Imagine for 10 years,the amount of time we can save is converted into more meaningful purposes.This will no doubt benefit our country in terms of real productivity.