Experts call for reforms to address COE system and congestion management in Singapore
In light of record-high COE premiums in 2023, panellists at a roundtable hosted by The Straits Times (ST) have suggested that it is time to revamp Singapore’s Certificate of Entitlement (COE) system. Rather than simply limiting vehicle numbers, they proposed focusing on controlling road usage through advanced technologies, like the newly launched satellite-based Electronic Road Pricing (ERP) system.
Of the six panellists, five agreed that the current COE system needs an overhaul, with Ivan Png, an economist from the National University of Singapore, arguing that distance-based charging should replace the current model. This reform would also address carbon emissions and congestion by making it more expensive to use vehicles, thereby encouraging greater use of public transport.
The panellists highlighted issues like the zero-growth vehicle policy, which limits vehicle numbers despite increasing infrastructure and population growth. They pointed out that high COE prices, which rose to S$150,001 for Category B and S$158,004 for Open categories during the summer, often result in car owners using their vehicles more, inadvertently increasing congestion.
Further discussions emphasized how the current COE system is based on outdated assumptions from the 1990s, with Walter Theseira and Victor Kwan arguing for tweaks in the supply-demand mechanism and introducing adjustments in road usage pricing to make the system more efficient.
The panellists also noted the issue of price volatility, with COE premiums fluctuating dramatically due to changes in vehicle deregistration patterns. They called for a system that balances both predictable pricing and congestion management, while encouraging responsible road usage.
The call for reform comes amid growing concerns over the future of private transport in Singapore, where high COE prices may not be sustainable in the long term. Theseira suggested a more flexible system that would allow policymakers to adjust pricing based on actual usage and congestion trends rather than fixed COE quotas.
While the panelists agreed on the necessity of change, they acknowledged that implementing such reforms would require political will and a careful consideration of public opinion on the matter.
