In Parliament
Written Reply by Minister for Transport Ong Ye Kung to Parliamentary Question on Factors Pushing Up Motorcycle COE Prices in Last Few Months and Cooling Measures to Ensure Affordability for Lower Income Group
2 November 2020
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Ms Joan Pereira asked the Minister for Transport
a. what factors have been pushing up motorcycle COE prices in the last few months; and
b. whether the Ministry will consider implementing cooling measures to ensure that this mode of transportation remains affordable for the lower income group.
Reply by Minister for Transport Ong Ye Kung:
1. The quota premium is dependent on the supply of and demand for the Certificates of Entitlement (COEs). As the Vehicle Growth Rate for motorcycles has been 0% per annum since 2018, the supply of Category D COEs depends on the number of motorcycles deregistered in the preceding months.
2. As COE bidding was suspended from April to June 2020 due to COVID-19, there was pent-up demand. Hence, when we returned the unbidded COEs accumulated from April to June 2020, we frontloaded one-third of them from July to September 2020, and will distribute the rest in the next nine months, from October 2020 to June 2021.
3. Category D COE prices have held quite steady at around $7,300 to $7,700 over the last six bidding exercises, but still higher compared to pre-COVID 19 levels.
4. We are mindful that many lower income Singaporeans require a motorcycle to go about their work. That is why motorcycles are subject to much lower Additional Registration Fees and road tax compared to cars. We will continue to monitor the situation.