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Driving school in crisis after COE rise to 67k

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Fewer people taking up driving lessons
Rising COE premiums, declining birth rate among reasons, say analysts
By Melissa Kok & Lim Yi Han
ST_IMAGES_MKDRIVE12.jpg

At least one driving centre has downsized its fleet of cars, while several private instructors also report fewer new students. The rising cost of buying a car and a decline in the birth rate are being blamed for the dip in enrolment. -- ST PHOTO: LAU FOOK KONG
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THERE will be fewer new drivers on the road this year compared to last year, going by fresh statistics from the Traffic Police.

The number of people taking up lessons to get their driving licences is estimated to have dipped by 30 per cent between the period from January to September last year, and the same period the year before.

At least one driving centre has, in recent months, downsized its fleet of cars because of the dip in enrolment.

The rising cost of purchasing a car and Singapore's declining birth rate are some possible reasons for the decline, say transport analysts and driving instructors.

Between January and September last year, 44,700 provisional driving licences (PDLs) were issued by the Traffic Police. The number stood at 77,000 for the 2009 calendar year. In 2008, 70,400 PDLs were issued.

While there were no figures for PDLs issued between January and September in 2009, the average figure is estimated to be 57,750.

A learner driver applies for a PDL once he has cleared the Basic Theory test on road safety rules. Once he gets his PDL, he can start taking practical lessons.

Mr Gerard Pereira, 53, assistant manager of Singapore Safety Driving Centre (SSDC) in Woodlands, said he has seen enrolment drop by 25 per cent in the past year.

The school gets an average of 10,000 students a year taking car driving lessons.

SSDC has also sold off 34 of its cars in the past six months, reducing its 144-strong fleet to 110 now.

When contacted by The Straits Times, the other two driving schools - Bukit Batok Driving Centre and ComfortDelGro Driving Centre - declined to comment on their enrolment numbers.

Associate Professor Michael Li, a transport economist at the Nanyang Business School, said: 'It is the high car prices, both new and used, that cause fewer people to get the learner licences.

'The big decrease in the COE quota is another factor.'

The past year has seen premiums for certificates of entitlement (COE), which give one the right to buy a car here, soaring to levels not seen since the late 1990s.

For example, the price of a brand new Toyota Corolla Altis 1.6 may cost around $97,000 now, about $30,000 to $40,000 more than what it cost a year ago.

But SSDC's Mr Pereira said a declining birth rate could also explain the dip in enrolment.

Both SSDC and ComfortDelGro said the majority of their students are aged between 18 and 25.

'The birth rate is a possibility because most students will try their best to get their licence when they are schooling. It is harder to get time to do it later when they start working,' he said.

Singapore's resident total fertility rate has been on a steady decline over the years, from 1.93 in 1990 to 1.47 in 1999, and to a historic low of 1.22 in 2009.

Out of seven private driving instructors The Straits Times spoke to, four of them said they were seeing a decline in enrolment, blaming either rising car costs or the declining birth rate.

'If cars cost cheaper, people don't mind getting their licences first,' said driving instructor Francis Ang, 50.

'But with the rising prices of cars, people don't see the point in getting one because they cannot afford to buy a car even after they pass anyway.'

Mr Peter Ong, 55, who has been a private driving instructor for more than 30 years, said he has seen 'ups and downs' in student enrolment over the years, however. 'Certain years, like the Tiger year, parents won't want to have babies. So 18 years later, you'll see less people qualifying for PDL,' he explained.

Instructor Ong Teck Kiap, 57, has another theory. 'Most of the Dragon year babies born in 1988 have got their licences already, so there is a decrease in students these days.'

Among those who are not intending to sign up for driving lessons is Nanyang Technological University student Ng Tze Min, 21.

She said: 'My family and friends tell me that it is cheaper to take a taxi compared to owning a car in Singapore. So it doesn't make sense for me to drive.'

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Additional reporting by Maria Almenoar
 
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