Chee Hong Tat highlights the decreasing demand from private-hire cars and the government’s efforts to stabilize COE prices.
Acting Transport Minister Chee Hong Tat has clarified that the demand for Certificates of Entitlement (COE) from private-hire cars is unlikely to be a major factor in the rising COE prices, as such demand has decreased over the past year. According to Chee, car-leasing companies, which often bid for vehicles leased to private-hire car operators, secured fewer COEs in 2023 compared to 2022.
In response to concerns from Members of Parliament (MPs) regarding record-high COE prices, Chee explained that the government would continue its “cut-and-fill” approach. This strategy involves bringing forward COE quota from future peak supply years to address current shortages, thus stabilizing prices. He also addressed theories about COE price drivers, stating that foreigners and multi-car owners contribute minimally to the overall demand, citing their low proportion in COE bids.
Regarding the growing role of private-hire cars in point-to-point transport services, Chee acknowledged their significance while emphasizing that adjustments to the COE system for these vehicles could lead to unintended consequences, such as higher prices for passenger cars or a shortage of private-hire services. The government is exploring further solutions beyond the current COE bidding system.
To stabilize COE prices in the meantime, the government has announced increased COE quotas for November 2023 to January 2024, with passenger car categories receiving a 35% boost. This is part of a broader strategy to ensure a steady supply of COEs, especially as Singapore faces a peak in de-registrations around 2026 and 2027.
