No 'unaccounted' for COEs

Media Replies 18 Apr 2014

We refer to the article, “COE supply up a third for next quota period” (The Straits Times, 12 April 2014), where Mr Neo Nam Heng, president of the Automobile Importer and Exporter Association, was reported as having said that “more than 9,000 pieces" of COEs were unaccounted for when the LTA moved from a six-month quota formula to a three-month formula in January this year. Mr. Neo is incorrect.

Upcoming COE quotas are determined based on the corresponding deregistrations in the same number of months. Hence, when we moved to a three month formula in January 2014, we used three months' worth of deregistrations from October to December 2013 to determine the number of COEs for the three months from February to April 2014. It would not have been correct to use six months’ worth of de-registrations (i.e. July to December 2013) to determine only three months’ worth of quotas.

An alternative that the LTA considered was to use the monthly average of de-registrations from July to December 2013 to determine the February to April quotas, but was rejected because it was a less responsive method, and would also have resulted in about 5% fewer COEs. 

Helen Lim (Ms)
Director, Media Relations
Land Transport Authority

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