Curbs on Car Loans from Record High COE Prices

64 Ms Mariam Jaafar asked the Prime Minister whether MAS is considering curbs on car loans in light of the record high COE prices.

Mr Tharman Shanmugaratnam (for the Prime Minister): The Monetary Authority of Singapore (MAS)’s restrictions on motor vehicle loans granted by financial institutions are principally to encourage households to borrow prudently.

The latest data shows that very few borrowers default on their motor vehicle loans granted by financial institutions, which provide the majority of such loans. The non-performing loan ratio for motor vehicles has remained at less than 0.1% in the fourth quarter of 2022. MAS will, however, continue to work with the Ministry of Transport in monitoring the situation in the Certificate of Entitlement (COE) market.