Earlier on Wednesday, LTA imposed a mandatory three-year lock-in period on all newly registered or converted chauffeured private-hire cars that are owned by businesses, and all such vehicles that are transferred from individuals to businesses.
LTA had originally intended to announce the new requirement after this latest COE bidding exercise. But it brought forward the announcement due to an “unintended release of information” by its vendor NCS, which resulted in some industry players knowing of this new lock-in period before the planned announcement date.
“To ensure transparency and fairness for all stakeholders, LTA has decided to bring forward the implementation of this new policy to Feb 19, before the close of the COE bidding process,” it said.
The new rule ensures that businesses that acquire such private-hire cars do so predominantly for the purpose of leasing them to drivers who provide ride-hail services, LTA added.
It also prevents the premature conversion of such vehicles out of the chauffeured private-hire car scheme, which will affect the supply of vehicles available for point-to-point services.
In November last year, Transport Minister Chee Hong Tat said in parliament that the main driver for the increase in COE prices in recent quarters was likely due to strong demand from local individual buyers, and not foreigners or car leasing companies.
