Replacement COEs main contributor to quota

Media Replies 16 Jan 2015

We refer to Mr Ivan Goh’s letter (“Difference in COE quotas puzzling”; 26 Dec 2014), in which he enquired how the quota for Category A Certificates of Entitlement (COE) is derived.

The quota for each COE category is determined by two main factors – replacement COEs for vehicles that have been deregistered, as well as the additional quota allowed for under the prevailing annual vehicle growth rate. Replacement COEs are by far the larger contributor to the COE quota. In this regard, the main reason for the larger monthly quota of Category A COEs in 2004 compared to 2014 is that almost 60,000 Category A cars were deregistered in 2004, compared to fewer than 20,000 in 2014.

We also wish to clarify that when taxis were taken out of the COE bidding process in August 2012, COEs were not removed from Category A. Rather, COEs used for taxi fleet expansion from then on were drawn from the Category E quota. This means that prospective Category A car buyers no longer need to compete with taxi companies for COEs.

We thank Mr Goh for the opportunity to clarify.

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

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