Reasons for Recent Record High Premiums of Motorcycle COEs and Measures to Help Those Impacted and Dependent on Motorcycles for Livelihoods

Mr Liang Eng Hwa asked the Minister for Transport (a) what are the reasons for the recent record high premiums of motorcycle COEs; (b) what can the Government do to moderate and bring down the premiums to more affordable levels; and (c) whether the Government is considering additional measures to help those who are impacted and dependent on their motorcycles for their livelihoods.

The quota premium depends on the demand and supply for Certificates of Entitlement (COEs). As the supply of motorcycle COEs for each bidding exercise is predominantly dependent on how many motorcycles are deregistered in the preceding period, the recent high prices for motorcycle COEs reflect strong demand.

Over the past year, more than 99% of motorcycle temporary COEs issued have been used to register motorcycles. This indicates there is real demand for these COEs, and there is little evidence of motorcycle dealerships and motorcycle-leasing firms bidding for excessive numbers of motorcycle COEs.

We recognise that some workers rely on motorcycles for their livelihoods. This is why the Government subjects motorcycles to lower Additional Registration Fees, road taxes and ERP charges, compared to other vehicles types.

We understand the concerns over the impact of higher COE prices on motorcycle owners who ride for a living. We are monitoring the situation closely and will take appropriate measures, if warranted.