5 Ways Singapore And Businesses Here Could Change in an Autonomous Vehicle Future

Autonomous vehicles are gaining traction. And Singapore could change in a big way as a result.

Singapore’s Ministry of Transport has outlined five ways that the country could change in a future where autonomous vehicles are prevalent. These changes could also have implications for the businesses for many companies in Singapore in the future.

But first, let’s look at how Singapore could morph in a future with autonomous cars. Here are the five ways highlighted by the Ministry of Transport:

  1. Safer roads and fewer accidents – It is estimated that there were 1.25 million road traffic deaths worldwide in 2013. According to Singstat, there were 155 road casualties in Singapore in 2015. Driverless vehicles are expected to reduce accidents and increase safety on the roads.
  2. Less congestion and smoother traffic – According to a 2011 MIT (Massachusetts Institute of Technology) study, if autonomous cars are adopted on a wide scale, it could lead to as much as a two-third reduction in the amount of passenger cars in Singapore from current numbers. Furthermore, activities such as goods delivery can take place at night, in effect distributing the number of vehicles on the road. All these can lead to less congestion.
  3. Greater mobility for elderly and disabled – Autonomous cars could also enable the elderly and disabled to travel on their own with minimal or no assistance.
  4. On-demand car sharing – We might not need to own a car as we will be able to share the services of an autonomous vehicle with others.
  5. Parking space optimisation – Less cars on the road could mean less car parks are needed. Roads could also be slimmed down as there are less cars on the road. The new space could be used for parks or other activities.

With that, let’s move on to how companies can be affected.

The implications can be direct. Companies such as vehicle distributor Jardine Cycle & Carriage Ltd (SGX: C07) and taxi operator ComfortDelgro Corporation Ltd (SGX: C52) could be looking at very different business models in the future.

Less obvious effects would be how the nature of logistics could change for companies such as Singapore Post Limited (SGX: S08) or how freed-up land could lead to other uses such as more residential property space. This could be a benefit for property developers such as CapitaLand Limited (SGX: C31).

It’s too early to guess right now as autonomous vehicle technologies are still in their infancy. But even if half of what the Ministry of Transport highlighted occurs, it could make for a very exciting future indeed.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn't own shares in any company mentioned.