Determination of COE Quota for Category D Vehicles

9 Mr Thomas Chua Kee Seng asked the Minister for Transport (a) how is the COE quota for Category D vehicles being determined; and (b) what is the long-term trend of the allowable motorcycle population in Singapore in view of the needs of low-income workers to own motorcycles due to their work requirements.

Mr Khaw Boon Wan: The number of Category D COEs available for bidding every quarter is based on the number of motorcycles deregistered in the preceding quarter. Adjustments are then made to account for the allowable growth rate for the vehicle population, cancelled and expired COEs, as well as contributions to the Open Category. It is no different from how we derive quotas for the other COE categories.

The number of motorcycles we should allow in Singapore is tied to how much we can grow our overall vehicle population, which will, ultimately, be limited by our land constraints. In this regard, at some point, we will have to bring the allowable vehicle growth rate to zero. By giving motorcycles a distinct COE category, Category D, we have limited the extent to which motorcycles will be replaced by cars within the vehicle population. We have also reduced the contribution by various COE categories, including Category D to the Open Category from 25% just a few years ago, to 10% currently. We will continue to monitor the trend of Category D quotas and make further adjustments if necessary.