COE Affordability and Re-Categorisation Considerations in Review

Written Reply to Parliamentary Question

Mr Kenneth Tiong Boon Kiat asked the Minister for Transport

a.          whether the Government will review COE affordability before setting the next vehicle growth rate, as COE prices are not a subject of LTA's review;

b.          what is the current ratio of COE prices to median monthly household income, on the basis that it was 11-to-one in 2013 and nine-to-one in 2023; and

c.           whether this ratio will be published yearly.

Assoc Prof Jamus Jerome Lim asked the Minister for Transport regarding the proposed COE categorisation changes involving rebates and surcharges based on vehicles' open-market values (OMV)

a.          whether the Ministry has studied the expected revenue differences between the three-band and five-band systems; and

b.          whether the rebate and surcharge amounts will be adjusted over time as the median OMVs evolve.

Assoc Prof Jamus Jerome Lim asked the Minister for Transport regarding the proposed COE categorisation changes based on open-market value (OMV) and possible removal of Category E

a.          which COE category will supply quotas for taxis;

b.          whether taxis will continue paying the Category A prevailing quota premium and be subject to the proposed rebates or surcharges; and

c.           whether similar arrangements have been considered for private-hire vehicles.

Reply by Minister for Transport Jeffrey Siow

1.          These questions have been addressed at the 3 November 2026 Parliamentary Sitting.