In a recent Facebook post, WP MP Jamus Lim reiterated the critical need for Certificate of Entitlement (COE) system reform.
He advocating for balanced annual vehicle quotas to address cyclical price fluctuations, and criticized the government’s tentative measures, calling for decisive actions to stabilize COE prices and prevent future escalations.
Singapore’s COE premiums vary: smaller car premiums drop, while larger vehicles and Open Category COEs rise amid quota adjustments and supply changes.
COE premiums in Singapore’s latest bidding dropped significantly, with Category B falling by S$40,000, attributed to increased supply and regulatory adjustments.
Opinion: Minister Chee Hong Tat’s stance on COE prices, contrasting with data on private-hire fleets, raises questions about his understanding of market forces and leasing firms’ influence.
“Why can’t Chee definitively say whether car leasing companies are the highest bidders in COE exercises, and that private buyers are the ones bidding aggressively for vehicles?
Surely, backend data could easily support this narrative. Why must the Acting Minister resort to such ambiguous hypotheses when the information should be accessible from the government’s end?
Is Chee hoodwinking the general public, or is he simply incapable of understanding economics?”
Acting Minister for Transport Chee Hong Tat dismissed the notion that car leasing companies are responsible for the surge in COE prices.
Additionally, he unveiled the government’s strategy to accelerate the allocation of COEs from the upcoming peak years, aiming to alleviate the current supply shortage and mitigate soaring ownership costs.
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.
The persistent surge in COE premiums despite LTA’s recent expanded quota has fueled debates on the COE bidding system’s impact on vehicle affordability for the Singaporean masses.
Netizens underscored the pitfalls of merging commercial and private bidding, with some advocating for a 3-year usage requirement for vehicles entering PHV and rental businesses.
Amidst an impending quota increase, COE premiums in Singapore shattered previous records, with the Open Category reaching a historic S$158,004.
This unexpected surge, particularly stark despite anticipated market adjustments, underscores the intense competition and escalating costs plaguing prospective vehicle buyers.
Letter: It is likely that private-hire car operators, possessing both significant financial and monopolistic power, have substantially driven up Certificate-of-Entitlement (COE) premiums. This has had a notable impact on private-car owners. Foong Swee Fong suggests that it’s time to reconsider their classification within the COE system.”
COE premiums for Category B and Open Category reached record highs in the October 4, 2023 bidding exercise.
Category B premiums surged to S$146,002, up from S$140,889, while Open Category COEs spiked to an astonishing S$152,000 from S$144,640.