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Siow says most COE feedback backs merging car categories, five-band rebate
Singapore's review of its vehicle quota system may reshape car pricing, with the transport minister also weighing COE-free price disclosure and lower bidding fees.
What happened
Transport Minister Jeffrey Siow told Parliament on Nov 3 that most people who gave feedback on the certificate of entitlement (COE) review supported merging categories A and B. Yahoo News Respondents also preferred a five-band fee rebate structure, which would cover rebates and surcharges based on the open market value of cars. Yahoo News Siow said the aim is to restore a permanent price distinction in COE premiums between mass-market and luxury cars. Yahoo News+1 He said the Land Transport Authority's public consultation on COE categorisation closed on Nov 2 and that the submissions are being studied, with no outcomes decided. Yahoo News Siow also asked the LTA to review whether motor dealers should be required to publish car prices excluding COE premiums, and whether bidding fees for individual buyers could be reduced further. Singapore Business Review
Around it
Category A COEs are now used to register mass-market cars and electric vehicles, while Category B certificates are meant for larger and more powerful cars. Yahoo News The review comes as premiums for Categories A and B have increasingly converged, partly due to electric vehicles. Singapore Business Review On bidding fees, Siow noted that some buyers still prefer having dealers bid on their behalf as a one-stop service, so the process should not be made too difficult. Singapore Business Review
What comes next
The COE review is expected to be completed by the first half of 2027. Yahoo News
Sources
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