Time ripe to revamp COE system, say transport experts

They call for distance-based charging for road usage with roll-out of new ERP system

The certificate of entitlement (COE) system should be revamped with more emphasis on controlling the usage of vehicles on the road, instead of simply capping their numbers, said panellists at a roundtable organised by The Straits Times.

Five out of six panellists felt the time was ripe to review and change the system, given that the technology to control usage has matured and Singapore is rolling out its next-generation electronic road pricing (ERP) system, which is satellite-based and capable of charging motorists based on distance travelled.

ST hosted the roundtable on Nov 23 to discuss whether the COE system merely requires tweaks or a major overhaul, in the wake of surging premiums in 2023 with records being set in the larger car and Open categories for six consecutive tender exercises from August to October.

After reaching highs of $150,001 (Category B) and $158,004 (Open), premiums fell across all categories at the first tender in November after the Government brought forward more COEs from future peak supply years to raise supply.

Economist Ivan Png, who is Distinguished Professor at the National University of Singapore, said it was time for the Government to "take a big step" and roll out distance-based charging for road usage, which will also indirectly charge for carbon emissions.

The unhappiness over the existing COE system, coupled with a comprehensive MRT network and introduction of satellite ERP, provides an opportunity for change, he added.