Motorcycle COEs have been on the upward trend for sometime now. At the last COE bidding exercise it stood at $6201, a slight increase from the previous bidding.
While it may seem a small sum to car owners who pay ten times this for their car COEs it is a burden to the small bike riders whose machine itself cos half the cost of a Coe. Most of these riders are Low income earners who use their machines to earn a living, such as despatch riders, delivery man etc. Also a significant number are students and NSmen who have to travel to faraway camps and institutions where public transport will just take too long a time to reach.
Zooming in on the current system motorcycle Coe availability is based on number of motorcycles scrapped. The issue at hand is that 10% of this number is transferred to the Cat E Coe which can be used to register any vehicle. This is where the flaw lies. Nobody will use a cat E Coe currently at $58801 to register a motorcycle. Therefore the COEs transferred from motorcycles to cat E is a continuos and permanent loss to the motorcycle category, and thus the result of the shrinking supply and record high premiums.
LTA needs to relook this policy as it will continue to deplete the lowest rung of road users and ultimately eradicate them, unless that is their intention.