Utilisation of Temporary Certificates of Entitlement (TCOEs) for Motorcycles Secured
Ministry of TransportSpeakers
Summary
This question concerns the utilization rates and engine capacity breakdown of motorcycle temporary Certificates of Entitlement (TCOEs) as raised by Mr Saktiandi Supaat. Minister for Transport S Iswaran reported that over 99% of TCOEs secured between May and September 2021 were utilized, with 70% involving motorcycles 200cc and below. To curb rising prices, the Category D bid deposit was increased from $200 to $800 and the TCOE validity period was reduced from six to three months. These changes, implemented in March 2022, aim to encourage prudent bidding and return unused certificates to the market more quickly. Minister for Transport S Iswaran stated that the Land Transport Authority will continue monitoring the situation to manage sustained motorcycle demand.
Transcript
85 Mr Saktiandi Supaat asked the Minister for Transport in view of the new historic high motorcycle COE price in late February 2022 (a) what is the utilisation rate for temporary Certificates of Entitlement (TCOEs) for motorcycles secured after April 2021; and (b) of which, what is the breakdown of the TCOEs which were utilised by engine capacity of (i) 200 cc and below, (ii) 201 cc to 400 cc and (iii) above 400 cc.
Mr S Iswaran: The utilisation rate for motorcycle temporary Certificates of Entitlement (TCOEs) secured from May 2021 to September 2021, which have all expired by end March 2022, is over 99%. This reflects strong and sustained demand for motorcycles.
The majority of motorcycles registered using these TCOEs are for the mass-market. Motorcycles with engine capacity of 200 cubic centimetres (cc) and below account for about 70% of the registrations; those from 201 cc to 400 cc account for about 20%; and those above 400 cc account for about 10%.
We understand the concerns over high motorcycle COE prices. LTA has been monitoring the market and, recently, introduced two changes to encourage more prudent bidding. First, the bid deposit for Category D COEs has been raised from $200 to $800. The bid deposit forms part of the overall price payable when the COE is used and will only be forfeited if the TCOE is not used to register a motorcycle before it expires. Second, the validity period of Category D TCOEs has been shortened from six to three months. The shortened validity period will allow unutilised COEs to be returned to the total pool more quickly to meet demand.
These changes have been implemented from the second bidding exercise in March 2022. LTA will continue to monitor the situation closely.