Debated in Parliament on 12 Sep 2022.
Mr Abdul Samad asked the Minister for Transport whether the measures to encourage prudent bidding of Certificates of Entitlement (COE) for motorcycles implemented in March 2022 has mitigated the rising COE price for motorcycles and, if so, how.
Certificate of Entitlement (COE) prices are determined primarily by market forces of supply and demand. There has been strong and sustained demand for Category D COEs.
We introduced two changes in March 2022 to encourage prudent bidding. First, the bid deposit for Category D COEs has been raised from $200 to $800. Second, the validity period of Category D TCOEs has been shortened from six to three months.
Since these changes were made, the Category D COE quota premiums have been relatively stable compared to other categories. The most recent Category D quota premium, as of the first bidding exercise in September, was about 1% lower than before the implementation of the measures for Category D, namely, the first bidding exercise in March.
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