More COEs from future peak years to fill current supply troughs

More certificates of entitlement (COES) that are guaranteed to expire in future peak supply years will be brought forward to fill the present supply troughs, as the Government moves to tamp down record premiums for owning cars and commercial vehicles here.

- Kok Yufeng

This will be done while maintaining Singapore's zero-vehicle growth policy, said Acting Transport Minister Chee Hong Tat in Parliament on Monday. The hope is that COE prices will moderate as a result.

"We will also ensure that the COE supply in the upcoming quarters will continue to increase in 2024 till the peak supply years in 2026 and 2027," he said.

Yet, in answering questions filed by more than 10 MPs on the issue, Mr Chee made the point that COE prices also depend on market demand, which he said is not within the Government's control.

"I need to be upfront with everyone that it is not possible to predict how prices will move in the next few rounds of COE bidding, but I want to assure honourable members and the public that (we) are doing what we can to address the concerns," he said.

Mr Chee described the Government's approach to reducing supply volatility as "cut and fill".

The first instance of the Land Transport Authority (LTA) bringing forward future COE quota was in May, when it said it would redistribute over several quarters about 6,000 five-year car COEs due to expire in the next projected supply peak.