Oral Reply by Senior Minister of State for Transport Dr Lam Pin Min to Parliamentary Question on Impact of the Tiered Additional Registration Fee for Motorcycles

Mr Png Eng Huat asked the Minister for Transport

a.     what are the findings of the meeting between LTA and dealers over the motorcycle COE price spikes;

b.     whether any study has been done on the impact of the tiered Additional Registration Fee for motorcycles on COE prices since its announcement; and

c.     whether there are any measures to ensure motorcycle ownership remains affordable for the working class.

Reply by Senior Minister of State for Transport Dr Lam Pin Min:

1.     LTA's engagement with motorcycle dealers were part of its efforts to better understand recent Category D price trends. The feedback was that the market is still in a state of flux and will take some time to stabilise following the recent ARF changes.

2.     These ARF changes will make higher-end motorcycles more expensive. However, lower-end motorcycles, which constitute more than 60% of the market, are unaffected and continue to attract an ARF of only 15% of OMV. Furthermore, we had stopped the contribution of COEs from Category D to the Open Category since May, which will result in a larger supply of motorcycle COEs.