In Parliament
Oral Reply by Senior Minister of State for Transport Dr Lam Pin Min to Parliamentary Question on Feedback on Stockpiling of Motorcycle COEs
6 February 2018
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Er Dr Lee Bee Wah asked the Minister for Transport with regard to feedback on motor dealers stockpiling motorcycle COEs to resell at a higher premium
a. what is the progress of LTA's investigation into this issue;
b. what is the Ministry doing to address this issue; and
c. whether the Ministry will shorten the validity period of these COEs to curb their speculation.
Reply by Senior Minister of State for Transport Dr Lam Pin Min:
1. Currently, motorcycle dealers bid for COEs (Certificates of Entitlement) under their name and hold a stock of Temporary COEs (TCOEs). This is the preferred model for the motorcycle market as it allows buyers to take delivery of their motorcycles immediately.
2. Our data does not reveal any irregular stock-piling of COEs, or use of the stockpile, by the dealers, with the exception of the period shortly after tiered Additional Registration Fee (ARF) for motorcycles was introduced. In that instance, dealers might have kept some of the TCOEs garnered before the announcement of tiered ARF to register more expensive motorcycles. The TCOEs have all been used up or expired.
3. We will continue to monitor the situation.