Debated in Parliament on 7 Feb 2024.
Mr Yip Hon Weng asked the Minister for Transport (a) whether an update can be provided on the review looking at how point-to-point services can better meet the evolving needs of commuters, including how effective a separate COE category for private-hire cars can support this endeavour; (b) what is the expected timeline for the completion of the review; and (c) under the review, whether occasional private-hire drivers who primarily use their vehicles for personal needs will be affected.
The ongoing review of the point-to-point, or P2P, industry structure and regulatory framework covers the availability, resilience and inclusivity of P2P services. As part of the review, we have been engaging the Tripartite Partners, as well as commuters and drivers. We target to complete the review by the second half of 2024.
Mr Yip.
Mr Speaker, I thank the Senior Minister of State for the reply. I understand that as part of review, they will be studying the option of having a separate Certificate of Entitlement (COE) category for private hire vehicles. If that is the case, will the separate COE category require additional regulations or licensing requirements and, if so, how would this impact operational costs on new entrants into the sector?
Secondly, how would the Government ensure that a separate COE category does not create unintended negative consequences for the broader transportation ecosystem in Singapore and how will this affect the COE of privately owned cars?
As mentioned before by the Minister for Transport both in this House and to the press, we are not ruling out the idea of having a separate COE category for private hire cars. But there are trade-offs with this idea and, therefore, we need to study this further and it also requires careful consideration.
The key challenge is in sizing the quota to be set aside for this category, especially since the demand for private hire car services continues to evolve. And given the current sizeable population of private hire cars, what it means is that we will have to reallocate the existing quotas from Category A and Category B for this separate category. And if we overestimate the demand, that would mean that there will be a tight quota constraint on Categories A and B and that, of course, would have a knock-on effect on COE prices. On the other hand, if we underestimate the demand, that means, we size the quota smaller than what it ought to be, then that could result in insufficient private hire car supply, and that could actually impact ride hail fare prices. So, indeed, this is something that we are working on and studying. But it is not something that we should take lightly.
But beyond that, as I have said in my main reply, the review for the P2P sector is not just about this idea of a special category or separate category for private hire cars, nor is it just purely about private hire cars. But it is about the P2P services, the industry structure and regulatory framework. It is much broader. It covers the availability, resilience and inclusivity of P2P services and how our rules and regulations should change to meet the needs of commuters and drivers.
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