- NEWSDAY.CO.TT - A la Une - Hier 07:48

Look to the Singapore model

THE EDITOR: The Certificate of Entitlement (CoE) in Singapore is a key component of the Vehicle Quota System (VQS) which was introduced to control the rapid growth of vehicle numbers in the city-state – an essential move given Singapore’s status as one of the most densely populated countries in the world. The CoE grants the right to own a vehicle for ten years, with allocation via competitive bidding, to limit inflow and manage urban congestion. Meanwhile, Singapore's monetary policy is primarily overseen by the Monetary Authority of Singapore (MAS) which manages the country’s economic stability by targeting medium-term inflation. Unlike most economies that adjust interest rates to control inflation, MAS uses the exchange rate as its main tool. By buying and selling Singapore dollars in the foreign exchange markets, MAS influences the exchange rate to maintain price stability. Because Singapore relies heavily on trade, its external currency value profoundly impacts domestic inflation – more so than interest rates – making exchange rate management critical for sustaining its competitive export sector and overall economic health. Overall, Singapore’s model exemplifies how strategic regulations – like the vehicle quota via COEs – and innovative monetary policy tools can effectively manage growth, prevent congestion, and ensure economic stability in a small, highly open economy. To address our ongoing forex crisis, immediate and strategic action is essential. Implementing a quota system on car imports, including used car dealerships, could help control foree outflows. Setting monthly limits on the number of vehicles allowed, along with restricting imports of cars with engines larger than two litres, would reduce unnecessary spending while encouraging fuel-efficient and smaller vehicles, helping to conserve forex. Additionally, our food import bill must be revisited. Items like apples, grapes, cherries, and other high-cost perishables should be placed on a negative lis – meaning they are restricted or phased ou – to promote local alternatives or reduce reliance on imported luxury foods. This list should be updated promptly to reflect current economic realities, with a focus on foods that are non-essential and costly. A concerted effort involving government policies, import regulations and active monitoring is needed now. Old talking points won’t cut it anymore. Reducing imports of non-essential goods and limiting vehicle imports can preserve our forex reserves, stabilise the currency and support local industries. These practical steps will help steer the country toward economic stability, ensuring we meet critical needs without depleting our foreign exchange. Action is urgent – there’s no time for delay when our financial future hangs in the balance. GORDON LAUGHLIN Westmoorings The post Look to the Singapore model appeared first on Trinidad and Tobago Newsday.