SINGAPORE'S leading public transport company SBS Transit is investing $147 million in 400 new Euro V buses,bringing the total number of new buses bought in the last four years to 1,100.

Last year, SBS Transit ordered 500 buses from the Swedish bus and truck-maker.

'This additional order is evidence that SBS Transit has confidence in Scania as a supplier,' the Swedish company said.

The latest purchase, which is part of an ongoing exercise to renew SBS Transit's fleet of 2,800 buses, will bring the total investment in new buses since 2005 to $427 million.

In a statement on Monday, SBS Transit said the order 'will reduce the average age of SBS Transit's fleet significantly with about 40 per cent of the fleet expected to consist of new buses by the end of 2009'.

The new buses will meet both 2009 European emission standards and the stricter enhanced environmentally friendly vehicle standard, the Scania said.

The new buses hold the distinction as Asia's first European Enhanced Environmentally-friendly Vehicles (EEV).

The Euro V EEV buses deliver better emission performance than standard Euro V models. -- AFP