Certificate of Entitlement (COE) Renewal Duration for Existing Car Owners

Oral Reply by Acting Minister for Transport Jeffrey Siow

Ms Poh Li San asked the Acting Minister for Transport in view of the high Certificate of Entitlement (COE) prices, whether the Minister will reconsider implementing COE renewal for shorter durations such as annually or two-yearly, so that existing car owners can have more affordable options to extend their cars ownership beyond 10 years.

Reply by Acting Minister for Transport Jeffrey Siow:

1.          We understand the concerns of existing car owners who wish to renew their COEs. However, we have to balance their interests with those who wish to buy a new car. We have already allowed existing car owners to renew their Certificates of Entitlement (COEs) for five years as a concession. If we allow for shorter renewals, this is likely to amplify the peak and trough of the COE cycles further. It would means that more car owners will renew their COEs when prices are high and this would reduce the supply of new COEs for prospective car owners.