Written Reply to Parliamentary Question on Mitigating Measures for Potential COE Spike in Late 2025 Due to Anticipated Higher Vehicle Demand Before Electric Vehicle Rebate Revision

Mr Saktiandi Supaat asked the Acting Minister for Transport 

a.      what measures are being considered to mitigate a potential spike in COE premiums in late 2025 due to anticipated vehicle demand ahead of the revised electric vehicle rebate schedule; and  

b.      how will such measures ensure market stability and affordable vehicle ownership.

Reply by Acting Minister for Transport Jeffrey Siow: 

1.      We have been taking steps to stabilise the Certificate of Entitlement (COE) supply, such as by bringing forward COE quota from future guaranteed de-registrations, and injecting an additional up to about 20,000 COE quota since February 2025.

2.      Nevertheless, COE prices are ultimately a function of supply and demand.

3.      As COE supply continues to increase till the peak supply in 2026, there will be more quota available in the coming quarters. We strongly encourage potential car buyers to be prudent in entering the market now.

4.      The Member may wish to refer to my response to the Adjournment Motion on 22 September 2025 for more context.