Rise in COE Prices and Need for Affordable Transport Solutions
Ministry of TransportSpeakers
Summary
This question concerns Mr Yip Hon Weng’s inquiry into whether car-sharing services contribute to rising Certificate of Entitlement (COE) prices and how the Government ensures transport affordability. Minister for Transport S Iswaran explained that COE prices have increased due to resilient demand and a reduced supply from fewer vehicle deregistrations. He stated that car-sharing reduces the need for private car ownership and serves more users, though higher road usage is managed via Electronic Road Pricing. Minister for Transport S Iswaran noted there are 4,600 shared cars and found no evidence that these services are driving up COE prices. The Government continues to develop car-sharing as a solution to complement public transport and point-to-point services for various commuters.
Transcript
17 Mr Yip Hon Weng asked the Minister for Transport in light of the significant increase in car registrations for car-sharing or self-driving services (a) whether this has contributed to the increasing prices of Certificates of Entitlement; (b) how does this affect road usage; (c) whether the Government will keep car ownership and transport affordable for the people who need it; and (d) whether there are plans to develop the car-sharing industry as a solution for large families or those with mobility problems to get around.
Mr S Iswaran: In land-scarce Singapore, we manage the overall vehicle population by controlling the number of Certificates of Entitlements (COEs). On the whole, demand for vehicles has remained resilient, while the supply of COEs has decreased due to a lower number of vehicle deregistrations. As a result, COE prices have been increasing.
Car-sharing companies help to complement the current transport offerings of public transport and point-to-point services, by providing users with a time-limited access to private vehicles. Car-sharing reduces the need for households and users to own a car outright. These cars also serve more households and users over time, compared to privately-owned cars. Hence, we would expect their overall road usage to be higher, which is addressed through congestion pricing through our Electronic Road Pricing (ERP) system.
There are now approximately 4,600 shared cars. There is no evidence that car-sharing companies and services are driving up COE prices.