Transport & Motoring Archives

How a S$3 Billion Scandal Stalled Singapore’s Luxury Car Market

If you’ve been dreaming of cruising down Orchard Road in a sleek Ferrari or a posh Rolls-Royce, you might want to pump the brakes on those plans. Let’s talk about the S$3 billion scandal that took a toll on luxury car sales.

S$3 BILLION SCANDAL

Singapore’s luxury car sales have experienced a significant decline, directly linked to a large-scale S$3 billion money-laundering case. In response, the government has increased taxes on luxury vehicles and implemented stricter financial checks to prevent illicit funds from entering the market.

STRICTER REGULATIONS

In light of the scandal, authorities have introduced more rigorous oversight. Luxury car dealerships and other sellers of high-value goods are now required to conduct deeper investigations into their clients’ financial backgrounds and report any suspicious activities.

SALES TAKE A SHARP DECLINE

Prestigious brands such as Bentley, Ferrari, Jaguar, and Rolls-Royce have seen sales plunge by up to 75% in 2024 compared to the previous year. A key factor is a shift in consumer behavior, with buyers opting for a more discreet approach to avoid regulatory scrutiny.

Image Credits: unsplash.com

Additionally, stricter due diligence checks and higher luxury car taxes further dampened sales. Meanwhile, the broader car market is moving in the opposite direction, with overall new registrations surging by 42% in 2024.

EVs GAIN TRACTION

As the luxury car segment slows, electric vehicles are gaining popularity. Chinese manufacturer BYD has reported increased sales as more consumers pivot toward eco-friendly and less ostentatious alternatives.

IN A NUTSHELL

For potential luxury car buyers, especially younger consumers, this may be a moment to reconsider their choices. As electric vehicles become more fashionable and practical, they may present a compelling alternative for those seeking both style and substance.

Sources: 1,2 , & 3

Punggol Coast MRT Station Opens December 10, Cutting Commute Times

Mark your calendars! The long-awaited Punggol Coast MRT station is set to open on December 10, 2024, at 3:00 pm. As the newest terminal on the North East Line (NEL), this extension from Punggol station will bring the total number of NEL stations to 17 along its 22-kilometer route.

Strategically located in the heart of Punggol Digital District (PDD), Punggol Coast station will significantly enhance connectivity for the area’s growing community.

“Located within the Punggol Digital District, the station will enhance connectivity to existing and upcoming developments, including the JTC Business Park, the Singapore Institute of Technology (SIT) campus, and Punggol Coast Mall,” said Transport Minister Chee Hong Tat in a Facebook post last October 10.

With 28,000 employees in the JTC Business Park, 12,000 students at SIT, and the upcoming Punggol Coast Mall, the station is set to serve as a major transportation hub.

But what does this mean for commuters? Shorter travel times! Residents in Punggol North can now reach the city center in just 45 minutes via the NEL, a marked improvement from the previous 60-minute journey. In fact, over 200,000 households will benefit from being just a 10-minute walk away from an NEL station. Its close proximity to the bus interchange further enhances convenience for residents.

Image Credits: facebook.com/WeKeepYourWorldMoving

Construction for the station began in 2018, and after rigorous operational testing, it is ready for passengers. The station will feature two entrances including one along New Punggol Road and another within PDD. What’s more? It has more than 300 bicycle parking spaces to promote sustainable mobility.

Image Credits: facebook.com/WeKeepYourWorldMoving

From a financial perspective, the opening of Punggol Coast MRT station could drive property values up in the area, particularly with improved accessibility. For investors, now is a good time to consider properties or businesses in Punggol Digital District, as the enhanced transport links will attract more residents, students, and workers. With growing connectivity, retail and real estate investments in the vicinity may see healthy returns.

Image Credits: facebook.com/WeKeepYourWorldMoving

Sources: 1, 2, & 3

East-West Line Back on Track After 6-Day Delay

After six days of delays, train services finally resumed between Jurong East and Buona Vista MRT stations along the East-West Line on the morning of October 1. The disruption, caused by extensive track damage, had left many commuters scrambling for alternative routes and dealing with longer travel times.

This return to normalcy brings a sigh of relief for many. However, westbound trains along the four-station stretch (i.e., between Dover and Clementi) are currently running slower at a temporary speed limit of 40km/h until October 3. This slower pace is part of a standard safety process following rail replacements, as trains typically travel at speeds of 60-80km/h.

COMMUTERS’ EXPERIENCE

During the disruption, the daily lives of more than 2.1 million passengers were affected with long waits and crowded platforms becoming the norm from September 25 to 29. The delays created challenges for those heading to work or school, requiring them to leave home earlier than usual.

Many commuters switched to alternative transport like buses, ride-hailing services, or taxis, which are typically more expensive than the MRT. You see, ride-hailing services also implemented surge pricing due to higher demand. These increased travel costs added up, especially for long-distance commuters.

ALTERNATIVE ROUTES

For six days, commuters took alternative routes, with many switching to the North-South Line or opting for the Thomson-East Coast and Downtown Lines. As a result, stations were packed, and transfer points became congested with passengers seeking faster routes to their destinations.

A common strategy involved transferring at Queenstown station to take the shuttle train to Buona Vista, or using Boon Lay station to transfer to Jurong East. While necessary, these options still extended travel times and complicated otherwise straightforward journeys.

REPAIR WORK

The damage affected the stretch between Clementi and Ulu Pandan Depot, requiring a full replacement of rail segments. On September 30, the Land Transport Authority (LTA) announced that the rail repairs been completed and the third rail had also been reinstated.

Before fully reopening the line, the LTA carried out a series of rigorous tests to ensure the tracks were safe. This included load tests using a locomotive to verify the rails were securely welded, followed by an endurance test involving a fully loaded train packed with sandbags to mimic real commuter conditions. Only after passing these assessments were trains allowed back on the line.

THE IMPACT

Commuters faced higher travel costs, missed appointments, and lost valuable time that could have been spent with family or at work. Many shared their frustrations of waking up earlier, enduring crowded buses, and dealing with extended travel times.

Image Credits: unsplash.com

For the millions affected, the six-day disruption felt like a marathon of endurance. With services now restored, they can finally return to their routines, though with a lingering sense of caution until the repairs are fully stabilized.

Sources: 1 & 2

Public transport fares to increase in Singapore from 28 December 2024

Public transportation fares are set to increase in December, from the 28th.

Adult commuters will see a 10-cent hike per trip on buses and trains while students, seniors, and those with disabilities will pay 4 cents more per journey.

Monthly passes remain unchanged.

Overall fares will rise 6%, down from 7% last year.

The good news is that lower-income households can get $60 transit vouchers, up from $50 last year.

More people now qualify for the vouchers, with the monthly income limit per person increasing to $1,800 from $1,600.

This means an additional 60,000 households will benefit from the vouchers.

Why the increase?

Regulator PTC cited inflation, wage growth, and past deferred increases as reasons for the hike.

While energy prices dropped from 2022 peaks, core inflation and strong wage growth factored into the 3.3% increase under PTC’s formula.

An additional 15.6% was deferred from prior years, allowing for up to 18.9% in total.

However, PTC chose a more modest 6% to cushion costs for commuters.

Chairperson Janet Ang noted the deferred amount accumulated due to spiking energy prices and inflation in 2021 to 2022.

This marks the second review under PTC’s new formula aimed at stabilizing fares.

The nitty gritty

Singapore’s public transport fare formula has five components: core consumer price index (cCPI), wage index (WI), energy index (EI), productivity, and network capacity.

For 2023 to 2027, productivity and capacity factors now have fixed values for stability.

Productivity contribution is minus 0.1%, while network capacity is 1.1%.

This year, the indexes increased cCPI by 2.1%, WI by 2.1%, and EI dropped 1.9%.

With fixed productivity and capacity, fares can rise by 3.3%.

Adding the 15.6% carried-over allows an 18.9% maximum increase.

However, the Public Transport Council approved only a 6% hike, leaving 12.9% for next year/future reviews.

Finding a win-win solution for all

The upcoming 6% fare increase will lower the deferred amount to 12.9% for the next review.

This helps narrow the gap between cost and fares, said Ms. Ang from the PTC, adding that the PTC will balance financial sustainability with affordability.

Meanwhile, the PTC encourages monthly passes to cap expenses.

Extended concession fares for graduating students

In addition to the abovementioned news, starting 28 December 2024, graduating students in Singapore can continue enjoying discounted transit fares for four months after finishing school.

Currently, secondary and post-secondary students receive concession fares.

However, some faced paying full price before enrolling in another school.

In response to parent and student feedback, our Transport Minister requested the PTC to extend fares.

PTC agreed to the request, granting graduating students concessions for four months post-graduation, which will start this year.

Around 75,000 students annually will benefit.

To extend validations, this year’s graduates can tap cards at any ticketing machines located in MRT or bus stations from 1 October to 31 December 2024.

They can also visit a ticketing counter for more assistance.

Future graduating classes will get extension details from their schools.

Heymax and Visa launch campaign to reward Singapore’s public transport commuters

Want to earn miles for your daily commute with Heymax and Visa?

Heymax, a lifestyle rewards app based in Singapore, has teamed up with Visa to launch a new campaign focused on sustainability.

From now until 28 November 2024, Heymax users can earn rewards just for taking public transit.

Commuters who link their Visa card to the Heymax app will receive three Max Miles for every dollar spent on MRT or bus rides.

This small reward adds up over time, while also encouraging greener travel choices.

Riders can accumulate miles with every trip, bringing them closer to prizes like business class flights to Japan worth 200,000 miles.

Joe Lu, Heymax CEO, noted that they are seeing a growing passion among Singaporeans to travel free using loyalty points.

While the miles can fund future adventures, the core goal is to nurture sustainable habits daily, he added.

By incentivizing public transport, Heymax aims to balance promoting local green actions with global travel experiences for members.

Research shows Singaporeans increasingly rely on loyalty programs for travel rewards and Heymax data found Agoda, Trip.com, Klook, and Singapore Airlines to be top merchants.

The loyalty market is projected to grow almost 10% annually through 2028.

This campaign also complements Singapore’s $60 billion public transport investment by 2030.

“From MRT & Bus to Miles: Heymax & Visa Reward Your Rides” Campaign T&Cs

General

The campaign runs until a total of 2 million Max Miles are earned across all Heymax users.
There’s no limit on how many Max Miles each user can earn. Miles from bus or train rides will be pending until transactions are approved and then added to your account.
New users who link a Visa card for the first time during the campaign get a bonus of 100 Max Miles.

Grand Prize Drawing

To enter the drawing to win big prizes:

Take at least one bus or train ride with your linked card during the campaign
Keep a card linked through the end of the campaign

Two lucky winners will be selected randomly from eligible users. The more you transit, the better your chances of winning!

Winners will be announced after the campaign ends and contacted by email.

For more info, head to heymax.ai/campaign/visa-busmrt

Good luck!

About Heymax

Heymax is making travel rewards easy and flexible for consumers based in Singapore.

As a travel rewards and personal finance platform, Heymax allows users to earn Max Miles from everyday purchases made with over 500 major merchants.

These Max Miles can then be redeemed directly for flights or transferred to 25 airline and hotel partner loyalty programs worldwide.

Beyond just flights, Max Miles provides options through gift cards as well.

Even better, the miles never expire and are free of annual fees so you have total freedom and flexibility when redeeming.

Since launching their proprietary loyalty currency Max Miles in late 2023, Heymax has seen tremendous growth.

Over 60,000 users in Singapore have earned a collective total of 80 million Max Miles through the platform and those miles have already been put to good use, as customers have redeemed over 10,000 flights.

In partnership with Visa, Heymax also provides a handy tool for tracking spending across credit cards with the Card Maximizer feature giving real-time insights into transactions and accumulating rewards.

To learn more, visit heymax.ai.

All image credits to Heymax.ai.

Why the increase?

The nitty gritty

Finding a win-win solution for all

Extended concession fares for graduating students

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