SINGAPORE: With Singapore’s policy of zero-growth in the car population and as household incomes rise, Certificates of Entitlement (COE) premiums are expected to trend upwards, said Transport Minister S Iswaran in parliament on Monday (May 8).
“Fundamentally, the COE prices reflect demand for a limited and falling supply of COEs,” Mr Iswaran said in a ministerial statement responding to parliamentary questions on the COE system.
He noted that demand for vehicles has remained “resilient”, especially as the economy recovers after COVID-19. Incomes have also been rising over the long term, and the ratio of COE price to median monthly household income has fallen.
“As household incomes continue to rise in the coming years, coupled with our policy of zero-growth in the car population, we must expect the long-term trajectory for COE prices to be upwards,” said Mr Iswaran.
Even as he announced new measures to raise the COE quota for cars in categories A and B over the next few quarters, Mr Iswaran stressed that mass public transport is at the core of Singapore’s transport strategy and the country is moving towards a “car-lite” future.
“As we seek to improve the efficiency of the COE system with these measures that we have already undertaken over the years, we should not lose sight of our goal of becoming a car-lite society with accessible and inclusive transport for all Singaporeans,” he concluded.
