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Singapore LTA increases COE supply to combat record-high vehicle premiums
The Singapore Land Transport Authority announces an boost of COE supply with an additional 1,614 certificates amid soaring premiums, with larger cars receiving the largest increase.
SINGAPORE: The Land Transport Authority (LTA) has announced an increase in the supply of Certificates of Entitlement (COE), which are essential for vehicle ownership in Singapore. An additional 1,614 COEs will be introduced into the pool over the next three months. This is on top of the reallocation of 1,895 COEs for smaller and larger cars from the guaranteed deregistrations.
The biggest boost is in the category for larger cars, with engines above 1,600cc or 130bhp, and electric vehicles (EVs) above 110kW, which will see an increase of 863 COEs. This is a 22.4 per cent increase, raising the total to 3,800 COEs available for this category.
For smaller cars and EVs with a power output of up to 110kW, there will be an additional 546 COEs, an 11 percent increase leading to a total of 5,513 COEs.
Commercial vehicles will also see a boost with an additional 205 COEs, taking their total to 1,129 for the November to January period.
The LTA stated, “Potential buyers may want to take note that the COE quota for Categories A, B, and C will continue to increase in 2024 before reaching the peak supply period from 2025, while Category D quota in 2024 is expected to remain comparable to 2023’s.”
This influx comes amid a period of exceptionally high COE premiums, with the premium for larger cars ending at a record $150,001, and the Open category, mostly used for larger cars, at $158,004.
The LTA’s move is seen as a way to address the high COE premiums that have been a point of concern. With the next COE tender closing on November 8, this development is particularly relevant.
In response to the volatile COE supply, LTA has adjusted the COE quota calculation twice, in July 2022 and January, to be based on the rolling average of vehicle deregistrations over a longer period, thereby reducing the quarter-on-quarter fluctuations.
The Transport Minister S Iswaran explained during a ministerial statement on 8 May that a one-off exercise would redistribute approximately 6,000 five-year COEs to help lessen the volatility in supply.
He then clarified, “There will still be a degree of supply fluctuation due to historical factors and broader market conditions.”
Minister Iswaran also provided insight into the long-term trends of COE prices, indicating that “the COE supply is also expected to ‘start increasing substantially’ in the coming months as more cars reach the 10-year mark, which should ease the market.”
However, he cautioned that the upward trend in COE prices is likely to continue due to the combined effect of rising incomes and the policy of zero vehicle population growth.
Mr Iswaran, who has been suspended over a corruption probe, posited that even though COE prices have risen in absolute terms, “if one were to compare COE prices to median income, such prices are actually lower because household income has risen.”
The issue of high COE prices remains a hot topic, set to be addressed by Members of Parliament in the upcoming parliamentary session next Monday. The rising COE premiums, the impact on Singaporeans, and the government’s intended measures to tackle the situation are poised to be key points of parliamentary debate.
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LTA certainly knows who bids for the COEs.. 2 ways to submit bids: A. ATM (DBS/UOB/Maybank) for individuals B. Online for corporate account holders And you need to fill in your: Singapore NRIC Foreign Identification Number (FIN) ACRA No Unique Enitity Number (UEN) Just release the numbers… no need to have names etc. But of course, LTA chooses not to reveal. Confidential and private of course. Anyone associated with PAP that result in benefits will be embarrassed. Its against the perceived honest face that all try to upkeep. If there is embarrassment, then there is an element of ethics involved..… Read more »
Don’t Fall Into The EV Kelong. Anyway, Soon Free Energy Is The Way Forth.
Every 3rd car that passes by on the CTE/PIE.. is a PHV.
There may be less cars on the roads but the congestion is still there.
PHV drivers are having a wonderful time choosing customers.
Such frequency may satisfy efficiency models but does not reduce congestion
or the fake carbon emission shit.
Another LTA’s knee jerk reaction without addressing the cause, – “easy money” being made by “people” who then drive up the bids to the detriment of bonafide sinkees who are being priced out of the COE market.
Pee air pee is taking advantage of the system with the commercial companies to increase the COE price and make more money from citizens.
SIMPLY increasing CEO alone is not going help. With the number COEs of private hired companies and number of rich foreigners snapping up, no increase in supply is going to be enough.
PaP should further categories COE under commercial use of. Private hired and those for personal used. Under personal used, it there should be local and foreigners cat too.
There is order in the universe. Mathematically so. Where there is imbalance, the universe will begin to correct it. The principle of “what is wrong in making more money” will cause imbalance. Correcting any imbalance will begin with chaos, disaster, pain,losses. and conclude with a return to balance. It does not mean it will return to the same state. Climate change will cause ice to melt and flood the earth. It will find balance eventually. But it will not be the same as before. The same goes with politics. The dynasties in ancient times have proven so. Meanwhile time on… Read more »
COE was meant to:
1. Unclog roads
2. Reduce congestion
3. Improve free vehicle movements
4. Control vehicular popular.
THE BELIEF and IDEA to RAISE Quotas is TO REDUCE PRICES. Then, HOW IS A DIMWIT To understand the ORIGINAL 4 Aims, to see AND Understand the TOTALITY of the COE system?
It’s The Easiest Revenue Generator.
Like that, HOW to be car-“lite”?? I think it is more of a make as much money as possible move while COE prices are at record levels. There is basically only one viable solution (and I’ve written about it many times over many years) but the PAP govt doesn’t want to kill their cash cow.
They flood the roads with as many PHV as demand dictates
But that demand exists because public transport does not make the cut.
And the cost of owning & driving a vehicle is beyond the reach of many.
That too drives up demand.
So who are buying new cars..?
Only the wealthiest 10% in Singapore can afford
The rental companies which are subsidiaries of taxi companies and PHV platform operators.
Some of these subsidiaries are owned by large corporations who trade in cars.
The PAP Gov knows they have no solution to this.
They painted themselves into a corner.
Surely LTA knows the identity of all those who bid for the COEs.
If they want to dispel the claims that Private Hire Rental companies are not the ones bidding up the COE prices, release the statistics.
If LTA has made the COE system an open bidding system, they should not claim they can’t do so because of privacy.
LTA, are you motivated enough to do the right thing?