We refer to Mr Lin Pai Tong’s letter “Why can’t a five-year COE be renewed further?” (Lianhe Zaobao, 16 Jan 2017).

The validity period of Certificates of Entitlement (COEs), whether first-time COEs or renewal COEs, was originally set at 10 years. However, as a special concession to car and motorcycle owners who feel that their vehicles might not last another 10 years, the five-year COE renewal option was offered. This concession comes with the condition that the COE cannot be renewed again at the end of five years, in order to be fair to those who have chosen to renew their COEs for 10 years and have to pay more upfront. This condition is clearly communicated to all vehicle owners at the time of COE renewal, so they can make an informed decision in choosing between the five-year and 10-year renewal options. 

Mr Ong Hui Guan
Deputy Group Director, Policy & Planning
Land Transport Authority