Measures to Deal with Recent Spike in COE Prices
Ministry of TransportSpeakers
Summary
This question concerns the recent spike in Certificate of Entitlement (COE) prices and potential government interventions to manage rising costs, as raised by several Members of Parliament. Ms Mariam Jaafar, Dr Lim Wee Kiak, Mr Melvin Yong Yik Chye, Mr Dennis Tan Lip Fong, Mr Yip Hon Weng, and Mr Liang Eng Hwa queried the impact of speculative bidding, private-hire vehicle fleets, and foreign residents on the market. The Members requested registration statistics and proposed measures such as capping fleet sizes, reviewing allocation methods, and providing assistance to drivers who rely on vehicles for their livelihoods. Senior Minister of State Dr Amy Khor Lean Suan responded by informing the House that the Minister for Transport would address these specific queries collectively. Permission was granted for the Minister for Transport to deliver a comprehensive response during a Ministerial Statement later in the Parliamentary sitting.
Transcript
1 Ms Mariam Jaafar asked the Minister for Transport for the 457 Category D temporary motorcycle Certificates of Entitlement (COEs) which had expired between January and March 2023 (a) whether these COEs are concentrated among a few dealers and, if so, who are the top dealers; and (b) whether the Government will consider even more stringent action on motorcycle dealers who may be engaging in speculative bidding, beyond increasing the bid deposit and reducing the validity period of the temporary COEs to include barring such dealers from participating in the bidding.
2 Ms Mariam Jaafar asked the Minister for Transport in light of the record high COE prices (a) whether the Government has a view on the optimal number of private hire cars on the roads; and (b) whether the Government will consider more decisive measures to prevent private hire companies from dominating and driving up COE prices.
3 Dr Lim Wee Kiak asked the Minister for Transport (a) what other steps are being considered to moderate COE prices; (b) whether the trend of rising COE prices is triggered by extraneous factors, such as influx of foreign residents into Singapore; and (c) how many cars are there in the bonded warehouse waiting to be put onto the market since January this year.
4 Mr Melvin Yong Yik Chye asked the Minister for Transport (a) what are the key factors driving the recent surge in COE prices; and (b) whether there are plans to help those who rely on driving for their livelihoods but have been priced out due to the record high COE prices.
5 Mr Dennis Tan Lip Fong asked the Minister for Transport for each month in the past 12 months, what is the total number of new cars which have been registered by (i) ride hailing or private hire companies and (ii) car leasing companies, as a percentage of the total number of new cars registered.
6 Mr Yip Hon Weng asked the Minister for Transport (a) whether the Ministry has done any analysis of its data to ascertain the key causes for the recent spike in COE prices; (b) whether the Government plans to impose a cap on the number of Private Hire Vehicles (PHVs) that a PHV operator can own in their fleet, similar to the cap imposed on taxi companies, to reduce COE prices; and (c) what additional measures is the Government considering to rein in the costs of COEs.
7 Mr Liang Eng Hwa asked the Minister for Transport (a) whether the high COE prices will further fuel costs increases within the economy; and (b) whether there are plans to review the system to better allocate COEs.
The Senior Minister of State for Transport (Dr Amy Khor Lean Suan) (for the Minister for Transport): Deputy Speaker, Sir, may I have your permission for the Minister for Transport to take Question Nos 1 to 7 in the Ministerial Statement later in the Sitting?
Mr Deputy Speaker: Yes, I give my consent.