We refer to Mr Luo Siao Ping’s letter “Extend COE validity to 20 years” (Straits Times, 13 June 2014).

The Certificate of Entitlement (COE) system ensures that our vehicle population does not exceed what our road infrastructure can support.

COEs are valid for ten years. When a vehicle’s COE expires, the owner may choose to deregister the vehicle, or to renew the COE for another five or ten years by paying the Prevailing Quota Premium.

Upon deregistration, the COE will be returned to the COE quota for all prospective owners to bid. This way, an opportunity to redistribute a vehicle’s COE is created every ten years, therefore giving prospective vehicle owners a chance of owning a car.

We thank Mr Luo for the opportunity to clarify.

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