Two motor industry veterans discuss the future of Singapore’s Certificate of Entitlement (COE) system.
Exploring Solutions to Soaring COE Prices
In a podcast hosted by Lee Nian Tjoe, senior transport correspondent for The Straits Times, two motor industry experts discussed the rising Certificate of Entitlement (COE) premiums and whether the system needs to be reformed. With COE premiums doubling from the previous year, vehicle prices have also surged, raising concerns about the sustainability and fairness of the current system.
1. Private-Hire Fleet Owners Driving COE Prices
One of the key insights shared by Mr. Neo Tiam Ting, President of the Singapore Vehicle Traders Association, and Mr. Neo Nam Heng, adviser to the Automobile Importer and Exporter Association, was the significant role that private-hire fleet owners play in driving up COE prices. Both experts believe that the demand from these fleet owners, who often purchase large numbers of vehicles at once, creates upward pressure on COE premiums.
2. Lock-In Period Proposal
The experts also discussed the possibility of introducing a “lock-in period” for car ownership, similar to policies applied to HDB flats. This suggestion aims to curb the frequent buying and selling of vehicles, which may contribute to volatility in the COE market and high premiums.
3. The Future of the COE System
As COE premiums continue to rise, experts are calling for a reevaluation of the system’s structure and its long-term viability. The discussion highlights the need for a balance between regulating car ownership and ensuring that the system remains fair and accessible to a broader range of Singaporeans.
In the podcast, the experts offered practical suggestions to help mitigate the escalating costs, sparking a broader conversation about potential reforms to the COE system.
