LTA reviewing COE system to improve categorisation of cars

The LTA is reviewing the Certificate of Entitlement (COE) system to improve car categorisation and address concerns about vehicle premiums. Read more at straitstimes.com.

SINGAPORE – The Land Transport Authority (LTA) is reviewing the certificate of entitlement (COE) system to improve the categorisation of cars.

Acting Minister for Transport Jeffrey Siow announced this on March 4 during the debate on his ministry’s budget, in response to MPs who called for a relook of the system.

Mr Edward Chia (Holland-Bukit Timah GRC) and Mr Ang Wei Neng (West Coast-Jurong West GRC) flagged how at the second tender exercise in February, the price of a Category A COE – meant for smaller and less powerful cars and electric vehicles (EVs) – exceeded that of Category B, which is for for larger, more powerful cars and EVs.

Mr Siow said LTA will gather views from the public and motor industry for its review. This includes motorists as well as dealers, car manufacturers and academics.

Work will begin immediately, with the aim of reaching a conclusion by the end of the year, he said in response to Ms Tin Pei Ling (Marine Parade–Braddell Heights GRC), who asked for a timeline of the review process.

Mr Siow noted that premiums for both categories are likely to “converge for some time”, given that the COE supply for Category A peaked in 2025 while that for Category B will continue to increase in 2026.