Reasons for Continued Increase in COE Premiums Despite Implementation of "Cut-and-fill" and Other Measures

Mr Saktiandi Supaat asked the Acting Minister for Transport (a) why Certificate of Entitlement (COE) premiums have continued trending upwards despite the cut-and-fill and other measures implemented since May 2023; and (b) where premiums for Categories A and B have doubled over the last five years, whether a similar rate of increase is expected moving forward.

Certificate of Entitlement (COE) prices are determined by supply and demand. COE prices have remained elevated due to a combination of factors. First, demand remains strong, likely due to competitive electric car prices. Second, while we have taken steps since May 2023 to increase supply and the combined supply for Categories A and B continues to increase, Category A supply peaked in the fourth quarter of 2025 and has started to decline.

Our review of COE categorisation for cars is ongoing. We expect to conclude the review by the end of this year.