Careful Study to Address Challenges in COE Classification for Private-Hire Vehicles
A potential separate Certificate of Entitlement (COE) category for private-hire cars (PHCs) in Singapore is currently being carefully studied, according to Transport Minister Chee Hong Tat. In his remarks, Chee explained that while the idea of a distinct category for PHCs is not inherently wrong, there are complexities to consider, particularly regarding supply and demand prediction.
Private-hire cars currently share the same COE category as passenger cars, a situation that has been criticized for driving up premiums. The challenge of introducing a separate category involves redistributing certificates from existing passenger car categories, along with difficulties in defining and forecasting demand for PHCs.
This review is part of the second phase of an ongoing point-to-point transport sector review which will examine these more complex issues. Chee confirmed that further updates will be shared during the Committee of Supply (COS) in March 2025, but did not specify when the review would conclude. The review, which began in September 2023, was initially planned for completion by Q2 2024, but remains ongoing.
In the first phase of the review, changes aimed at reducing regulatory requirements for taxis and providing guidelines for P2P operators were announced and will take effect in January 2025.
