COE prices driven by strong demand from locals

I refer to the letter “Suggestion to lower the high cost of COEs” (Liang Zonglei, 15 Aug). 

Imposing an additional buyer’s stamp duty (ABSD) on cars for foreigners will likely not have a significant effect on Certificate of Entitlement (COE) prices. The proportion of Cat A and B COEs won by foreigners remains low, accounting for less than 2% of successful bids. Such a system would also be costly to administer and enforce.

In land-scarce Singapore, we cannot guarantee every of our 1.5 million resident households a car. But we can guarantee every Singaporean affordable and high-quality transportation. The Government will continue to invest in our public transport system and point-to-point transport options to expand connectivity for all.

Elaine Koh

Director, Private and Shared Mobility Division

Ministry of Transport