Written Reply by Minister for Transport S Iswaran to Parliamentary Question on Utilisation Rate for Category D COEs Year-To-Date and Proportion of Successful Bids by Commercial Entities and Individual Buyers

Mr Muhamad Faisal Bin Abdul Manap asked the Minister for Transport 

a.     what is the utilisation rate for Category D COEs from January to September 2021; 

b.     what percentage of successful Category D COE bids are made by commercial entities and individual buyers respectively; and 

c.     what consideration has the Ministry given to setting a fixed quota of COEs solely for individual buyers to bid.

Reply by Minister for Transport S Iswaran:

1.     For temporary Certificates of Entitlement (TCOEs) secured from January to April 2021, which have since expired, the utilisation rate is 99.9%. The TCOEs secured after April 2021 have not expired since they have a validity of six months.

2.     While 96% of the successful Category D COE bids are made by commercial entities, including motor dealers, most of these COEs are subsequently used to register motorcycles belonging to individuals. This is because many owners prefer to obtain their COEs through their dealers. Doing so allows the motorcycle buyers to benefit from being able to get their motorcycles immediately, by using the TCOEs that the dealer has already secured.

3.     The high TCOE utilisation rate suggests that the higher Category D COE prices are a result of higher demand for motorcycles. There is no evidence that it is caused by allowing both dealers and individuals to bid. To set a quota for individuals would be arbitrary, and the smaller quotas in the COE sub-categories will likely result in greater market volatility and potential increases in COE prices.

4.     The Ministry understands the concerns on the impact of COE prices on motorcycle owners who ride for a living. I would like to assure the House that we are monitoring this situation closely and will take the appropriate measures, if warranted.