Additional Measures to Encourage Prudent Bidding of Motorcycle COEs

5 Ms Mariam Jaafar asked the Minister for Transport considering the continued rise in motorcycle COEs whether additional measures to the changes implemented in March 2022 to encourage prudent bidding are being considered.

The Senior Minister of State for Transport (Dr Amy Khor Lean Suan) (for the Minister for Transport): To help buyers obtain their motorcycles sooner, motorcycle dealers bid for and hold onto some Category D Temporary COEs or TCOEs, which can be used to first register a motorcycle before subsequent transfer to a buyer upon purchase.

With rising Cat D COE quota premiums, there were some concerns that dealers were speculatively bidding and holding on to TCOEs. Thus, in March 2022, the Land Transport Authority (LTA) adjusted the Cat D COE bid deposit from $200 to $800, and shortened the Cat D TCOE validity period from six months to three months, to encourage prudent bidding behaviour.

We will continue to monitor the situation closely and consider further actions, if necessary.

Mr Speaker: Ms Mariam Jaafar.

Ms Mariam Jaafar (Sembawang): I thank the Senior Minister of State. We agree that the Government has done quite a bit in trying to contain the issue of motorcycle COEs, including the move on prudent bidding. It did have an impact for a few months after the implementation. But motorcycle COEs are now going up again. This is a really important issue to the people who actually rely on their motorcycles to do their work. Can the Ministry say more if it is willing to consider raising the bid further? Or if that is not the issue, are there any other moves that can help to bring down motorcycle COEs?

Dr Amy Khor Lean Suan: I thank the Member for her supplementary questions. Let me say that we share the same concerns. I think many other Members of Parliament, including the Government Parliamentary Committee Chairman Mr Saktiandi Supaat has also raised these concerns.

As I have said, we understand the concerns of the potential buyers of, for instance, motorcycles, particularly if it is for their livelihood. So, we closely monitor the situation. As I have also noted in my earlier reply, we have made some moves in March with regard to the validity period – we shortened it and raised the bid deposit. To reduce the quarter-to-quarter volatility for the COE premiums, we have changed the method of computation for COE quota, which would also help in terms of the motorcycle COE premiums.

But some of these changes, the impact may take some time to flow through. We are monitoring the situation and we are prepared and will consider further actions if necessary.

Mr Speaker: Mr Pritam Singh.

Mr Pritam Singh (Aljunied): Thank you, Mr Speaker. Just a question for the Senior Minister of State, in view of the reply to the hon Member Ms Mariam Jaafar. In the last decade, I understand LTA had allowed for the transfer of up to 25% of COEs originally put aside for Cat D motorcycles and allowed them to be transferred to the Open Category. That number then was reduced to 10% and I think now, the transfer is not allowed anymore – or at least, that policy has ceased, that is, the move from motorcycle COEs to the Open Category, to Cat E.

Can I ask has LTA ever transferred COEs from the open category to Cat D, for the motorcycles, to raise the number of COEs available for motorcycles?

Dr Amy Khor Lean Suan: I would say that, as the Member has pointed out, we have stopped the contribution of the number of the COEs from the motorcycle category, Cat D, into Cat E; whilst the others would have continued to contribute a certain percentage. I stand to be corrected but I do not think that there has been instances where we have actually done the reverse.