18/06/2020
Return to (Near) Normal
We suspended COE bidding since April as motor vehicle dealerships and showrooms were not allowed to open. With the decision to re-open them from 19 June in tandem with Phase 2, we will resume COE bidding from 6 July. This gives motor dealers and prospective vehicle buyers time to plan and confirm vehicle purchases before bidding resumes.
The question is how to redistribute the COEs accumulated from April to June fairly and not cause market contortion. There are about 20,000 COEs accumulated over the last 3 months which can be re-injected into the market. One way is to do so immediately for the first COE cycle in full. But this will likely cause a market crash.
We will re-inject the COEs gently so there is a soft landing. What has been unused in the last three months β we will put back one-third of the quota into the next three months, with the rest evenly returned to the subsequent bidding cycles for the next nine months.
This works out to an increase of about 30% in COE quotas for cars in July compared to the quarter before, and the increase for motorcycles and goods vehicles will be higher at about 50%.
With Land Transport Authority β We Keep Your World Moving
Source: The Straits Times Β© Singapore Press Holdings Limited. Permission required for reproduction.
