Public Consultation on the COE Framework and Multiple Car Ownership

News Releases 07 Jun 2013

Public Consultation on the COE Framework and Multiple Car Ownership

LTA to seek views from the public on the COE and car ownership framework

from the social equity perspective

          The Land Transport Authority (LTA) is consulting the public to gather views on if and how the Certificate of Entitlement (COE) and car ownership framework should be refined. This is to address public feedback that luxury cars are creeping into Category (Cat) A of the COE framework, and that given the limited number of COEs available, individuals owning more than one car deprive others of the opportunity to own a car.

2.        The public is invited to submit ideas and suggestions by taking part in a survey at LTA’s web portal starting today until 7 July 2013. More information on the scope of this public consultation is available at the web portal.

3.        The ideas and suggestions gathered will help the LTA to study more closely (i) ways to better delineate Cat A from Cat B so that buyers of mass-market cars do not compete directly with buyers of luxury car models in the COE bidding; and (ii) multiple car ownership.

(A)      Review of Category A

4.        In recent years, car models generally viewed as luxury cars have become more common in Cat A. These models have significantly higher open market value (OMV) and engine power than those of mass-market models. To better retain the original purpose of Cat A of catering to mass-market cars, LTA is reviewing how we could refine the COE categorisation.

(B)       Multiple Car Ownership

5.         Due to our land constraints, not everyone in Singapore can own a car. There has been public feedback that individuals who own more than one car deprive others of the opportunity to own a car, given the limited number of COEs available. However, as cars are not basic necessities, it would be difficult and also not appropriate for the Government to decide who should be allowed to own cars and how many cars he or she should be allowed to own. The COE system should instead be market based because it is the most appropriate way to allocate a non-basic good.  Within this market-based framework, LTA is seeking views on the desirability and effectiveness of levying surcharges for multiple car ownership, from the perspective of enhancing social equitability given that such owners enjoy more than others, the privilege of this limited resource.  

6.         LTA will also be conducting focus group discussions with members of the public. As part of the consultation process, LTA has also started to seek suggestions and ideas from the motor industry and academics. All suggestions and ideas received will be consolidated and duly assessed. LTA will provide an update later in the year.

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