Reviewing Category C COE scheme given increasing premiums

Written Reply to Parliamentary Question

Mr Kenneth Tiong Boon Kiat asked the Minister for Transport given that the Category C COE premium has reached a record $95,000

a.          whether the commercial vehicle quota, currently growing at 0.25% annually, will be raised to meet demand;

b.           whether fleet and leasing firms will be required to bid separately or face caps to protect small owner-operators; and

c.           whether Category C can be further sub-categorised by vehicle weight.

Reply by Minister for Transport Jeffrey Siow:

1.          The recent increase in Category C COE prices is likely due to the increase in electric heavy goods vehicle and electric bus registrations since the Heavy Vehicle Zero Emissions Scheme was implemented in January 2026. Registrations for electric heavy vehicles have risen from less than 1% in 2025 to more than 30% in June 2026.

2.          Unlike all other vehicle categories, Category C is allowed a 0.25% vehicle growth rate to meet the operational needs of businesses. The vehicle growth rates are reviewed once every three years, and the next review will be in late-2027.

3.          We do not intend to split Category C further, whether by bidder type or vehicle weight. Doing so is economically less efficient. It would mean smaller quota numbers in each sub-category, and hence more volatile prices.