Electric heavy vehicle grants to drive Singapore’s fleet decarbonisation: experts

This will fuel the growing interest in e-vehicles.

Singapore’s move to incentivise owners of heavy vehicles to switch to electric models is a welcome move to fuel decarbonisation efforts for cleaner transport, experts said.

Prime Minister Lawrence Wong announced the Heavy Vehicle Zero Emissions Scheme and Electric Heavy Charger Grant in his budget speech on 18 February.

According to Lai Kee Yin, partner, technology, digital & sustainability consulting at Forvis Mazars, said this initiative creates “a 'win-win' situation, financially and environmentally,” as heavy vehicles accounted for 22% of all registered goods and other vehicles category in 2024.

“These initiatives aim to defray costs, encourage adoption and provide tangible support to organisations on their decarbonisation journey,” he also said.

Toh Shu Hui, partner, tax Services, Ernst & Young Solutions LLP, meanwhile, noted that the transport sector accounts for approximately 15% of Singapore's total emissions.

Singapore’s new programmes “will catalyse businesses to adopt cleaner modes of transport, reducing their carbon emissions,” she said.

Wong Meng Yew, sustainability and climate tax leader at Deloitte Southeast Asia businesses in the logistics and transportation sectors should take this opportunity to future-proof their operations and contribute to a low-carbon economy.

The new measures are also expected to support the growing interest in electric vehicles, according to Yoon Young Kim, cluster president, Singapore and Brunei, at Schneider Electric.

“There has been plenty of attention on consumer electric vehicles, but we have a significant opportunity to cut national carbon emissions by convincing more companies to convert their industrial vehicles to electric ones,” he said.