Replies to Feedback

the key here is the drastic cut or reduction in the supply of coe (cut to 0.5%) initiated by the transport minister lui. this, couple with the road's capacity design by lta (jam often occurs whenever a lane is obstructed/closed, delays in expanding/widthening roads) results in the sky-rocket coe price biddings. where the coe growth rate of 1.5% would be adequate and balanced to manage the vehicle population growth.

Whatever the Government does, please ensure public transport and small businesses are looked after. One cannot expect these two to go head to head with wealthy individuals in the COE bidding process and win. And if they have to accept such COE levels, then it will only fuel inflation.

We do accept that some industries have to upgrade and increase productivity. But there must be avenues for people to start and run successful businesses. And it is all the more important in an increasingly volatile world with poor job security. These people must start somewhere and one cannot expect them to all be tech wizards, be given this line, forced to accept COEs at these levels and pushed to fight the large and established juggernauts. We will always need plumbers, locksmiths, delivery services, etc. Sustaining COEs at these levels might amount to plumbers and locksmiths going from client to client on foot, channeling business to mega retailers and generally limiting options in many ways. Singaporeans understand there are policy trade offs. But these people need to be looked after.

It is for our highly talented public sector to find those solutions. Even if it means some form of COE carve out for these categories. The playing field just isn't level and the free market and laissez faire approach has its limitations.

Government policy needs to take into account that there are many Singaporeans who exist and work outside the world og big business. These Singaporeans may not contribute to GDP in a big way but sell and perform many essential goods and services that keep the economy functioning properly. The country cannot only serve big business and big money.

Let's make a radical change and allow new COEs lifespan to be 20-years from 2013 onwards. 

We bring on emissions-based surcharges and set up national plan for environmental protection. Yet we refuse to acknowledge the wastefulness of forcing car owners to accept a 10-year lifespan for cars.

We need to reuse and recycle. Let's get used to maintain and repair. And it will grow the local repairs and recycling industry too, give jobs to local technicians and business owners. Will teach URA how to zone for clean-tech auto repair businesses too.

New car demand will fall because buyers will learn to choose more reliable cars and keep them longer. Loans burden will also reduce because cars are depreciating over longer time.

Can think of only benefits, unless we have all been lied to and the govt merely wants the import of new cars with the regular export of used cars to contribute to the GDP numbers growth, and prop-up the tax base.

Dear Minister Lui, aren't the Japanese and Korean car distributors crying foul over the present private car COE categorisation?

European brands such as Mercedes, BMW, Volvo and Volkswagen will continue to release small-engined sedans that compete all too well with the small-engined basic japanese and korean cars. And the continental cars get a discount on their selling price because of Cat A's lower price than Cat B.

Let's move to categories by OMV: "Low OMV" and "High OMV", with a dividing line of about $20,000. This will keep buyers of luxury brands in the "High OMV" category.

Give lower income buyers a chance. Give those japanese and korean brands a chance.

Will also give you a reason to move Taxi COEs into the Commecial Vehicles category or something else. Just stop muddying up the private car categories.

Please fix this situation soonest. Don't wait.

Hey LTA, you are really "Late To Act".

Minister Khaw already hint about need to be prudent. Stop allowing COE to be lumped together with car loans. Get back to basics with a pay-as-you-bid for COE bidding.

Once required to deposit full reserve bid amount into LTA with cash will definitely see demand drop like a stone. Very few have cash to spare.

Please let us face the true affordability of cars issue. No more easy credit and loans. Don't allow the car dealers to bid on buyers' behalf anymore.

Or is there some agreement with the local financing houses to help them grow their loans business?

1)      We should change the COE ownership to attach to car owner, not to the vehicle.
One can still change car frequently so that we can keep the car sales healthy in return provide good TAXES. COE still stays for 10 year with the same person. Make it non-refundable except when one chooses to give up owning car for life. Heavy levy (10 times the new COE) if he own car again. This is to prevent people from abusing the system, by giving up their high COE and bid for one when the COE is low.

2)      Allow the car owner to bid for COE, instead of g the dealer bid for them. The bidder has to pay for the price he bids, if successful. e.g. A person submits a bid of $50,000 and the final outcome is only $20,000. The bidder is required to pay $50,000 based on his original bid.
The Dealer just wanted to sell car's. This unfair practice jacks up the price of COEs unnecessarily and contradicts what car dealers in the rest of the world does - earning profits from the sales of cars alone, not profit from COE prices!

3)      Implement one owner per car policy.  Max 4 cars for owners of Good Class Bungalows and max 2 cars for the rest of population staying in landed property, condo and HDB with a valid/available parking lot. Currently they are a hundreds or many thousands of rich owners register more than 2 cars under the same name. This will help to free up more COE into the markets in near future.

4)      Restrict Company to own any car. Companies can only have commercial vehicles. Make no loopholes for people to make use of their companies to register cars for personal use.

5)    Encourage Off-Peak/weekend car. Create a COE category for this group for car less than $45k OMV.
Start gradually with 50 cars per bidding and up to 5% of the car population.
Add a $50/Day Licence for driver drive from 7am. Change the current $20/Day Licence for usage from 9.30am onwards and reduce the Day Licence usage to max of 10 Licences/month. Offenders will be fined $1,000 or more.

This will help to further curb the CEO price and reduce vehicles from congesting the road during peak hours and prevent the rich from abusing the system through the loopholes.

Just to reiterate again, we really need to re-look into the introduction of COE in the first instances; say  to calibrate our car population to "optimum" numbers in support of our economic activity function and at the same time to provide citizenry ownership aspiration(car ownership being our local citizen's luxury and mark of social achievement)

The problem with the COE system is that it unfairly favors the very rich.