5 Jun 2012, 4.38PM
by REACH Administrator
The high COE prices in April and May had contributors all abuzz about the Certificate of Entitlement (COE) supply crunch. Some of them called for the Government to tweak the COE system and supply, to address the issue of high COE prices.
- Decreasing vehicle growth rate to 1% per annum from August 2012, instead of the planned 0.5 %. LTA will then further reduce it to 0.5 per cent per annum from February 2013 to January 2015. It had originally planned to cut the vehicle growth rate more quickly, from 1.5 per cent to 0.5 per cent per annum, starting August.
- Deferring clawbacks of COE over-projections from the quota years 2008-2009. The claw-back will resume from August 2013 to January 2015. This will make available 266 more COEs per month, or about 7% of the current monthly quota, from August 2012 to July 2013.
- Gradual reduction of number of COEs for the Open Category, from the current 25% to 20% August and to 15% in February 2013, for a more stable supply of COEs
In an interview with Straits Times (Steering clear of roller-coaster COE cycle
) after LTA’s announcement, Minister Lui Tuck Yew spoke of further tweaks to the COE system being considered, of which one change could be to have flatter supply pattern over the long term, instead of the current ‘roller-coaster’ trends since the quota system started in 1990.
LTA is also looking at other ways to make cars more accessible to Singaporeans such as car-sharing, Minister shared as he acknowledged that there are times when public transport or event taxis will not do.