CAR owners could get tens of thousands in hard cash when they scrap their vehicles, instead of a paper rebate that offsets taxes in the next car they buy.

Transport Minister Raymond Lim announced this measure on Sunday to make it easier for Singapore residents to give up their cars for public transport.

He was speaking at the launch of the Land Transport Masterplan, a 101-page paper encapsulating changes of the Land Transport Review which he announced in January.

'As I said when we launched the Land Transport Review, we will leave no stone unturned,' Mr Lim said. 'So this is one more stone that I'm turning up to have a look at it... to see if it can be done.

'You got to look at our overall objective - it is to have a decisive shift towards public transport. So we should look at whether we can have any incentive to help people make the shift.

'The current position is if you want the rebate, you have to buy a new car.'

Ever since a scheme to keep Singapore's car population young was started in 1975, motorists are given paper rebates if they scrapped their cars before the 10th year. When the COE system started in 1990, unused certificates of entitlement portions are also refunded this way.

Motorists, however, can realise these rebates only when they buy another car. If they do not wish to buy another vehicle, they can sell the rebates to motor traders, who take a cut of up to 10 per cent for the transaction.

Many people are unwilling to stomach this loss in value - often amounting to several thousand dollars - and therefore buy another car.

In the last 30 years, motorists have been asking for rebates to be paid in cash, but the answer always been 'no'.

Minister Lim said he has asked the LTA to work with the Finance Ministry to see if it be 'yes'.

He expects 'an outcome in the next four to six months'.