Measures to Limit Price Hikes in Motorcycle COEs

36 Mr Zainal Sapari asked the Minister for Transport (a) what is the percentage of motorcycles registered under the Open Category COE in 2015; and (b) whether the Ministry can consider (i) increasing the supply of Category D or motorcycle COEs so as to reduce their COE prices; and (ii) allowing five-year renewals for motorcycle COEs.

Mr Khaw Boon Wan: No motorcycles were registered using Certificates of Entitlement (COEs) from the Open Category in 2015.

The objective of the COE system is to control the growth of the vehicle population in Singapore so that road traffic remains manageable and to allocate the supply through market-based pricing. Increasing supply so as to lower COE prices would not be in line with this objective. COE prices should be determined by the market and the Government does not set any target.

Motorcycle owners can renew their COEs for a term of five years, on condition that they deregister their vehicles thereafter.