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Written Reply by Minister for Transport Khaw Boon Wan to Parliamentary Question on Second Five-Year Extension of COE for Vehicles in Good Condition

11 Feb 2019 In Parliament

Mr Kwek Hian Chuan Henry asked the Minister for Transport whether the Ministry will allow a second five-year extension of the Certificate of Entitlement if the vehicle is in good condition and has a track record of proper maintenance.

Reply by Minister for Transport Khaw Boon Wan:

1.     For cars and motorcycles, the validity period for renewal COEs is aligned with new COEs, to ensure that owners of new and renewed vehicles pay the same COE for owning vehicles in the same category.

2.     As an exception, LTA provides a five-year renewal option as a special concession to vehicle owners who would like to renew their COEs but feel that their vehicles may not last beyond another five years. This allows them to pay a smaller COE premium at the point of renewal. Vehicle owners are informed that the condition for the five-year renewal is that these vehicles must be deregistered at the end of five years, and no further renewals will be allowed. This is to prevent speculative activities where owners renew for shorter periods in the hope that COE prices will be lower in five years’ time.