Extension for 5-year COE period will reduce its supply

Media Replies 06 Jul 2022 COE

We thank Mr Yao for his feedback on COE renewal “Suggestions to extend the validity of COE” (8 Jun) and “Feeling disappointed after failing to receive response” (27 Jun).

We appreciate the views raised by members of the public through forum letters, as well as LTA’s online feedback form (www.lta.gov.sg). We would like to assure Mr Yao that LTA pays close attention to views and issues raised at forums such as in Lianhe Zaobao.

Mr Yao has suggested maintaining the 10-year COE renewal policy, with the additional option to make the payment at two intervals of five-years instead of a one-time payment for 10 years.

As explained in our previous replies to forum letters with similar suggestions on the same issue, the COE system needs to be fair to both prospective and existing car owners.

Given that a new car buyer would have to pay for a new 10-year COE in full, there is a need to consistently apply COE payment terms for COE renewals to be fair to both existing and prospective car owners. If more existing owners choose to renew their COEs because it becomes more affordable to do so over two tranches of payment every five years, the number of cars de-registered and the supply of COEs available for bidding will consequently be reduced. This means that while more existing car owners will be able to keep their cars, new car buyers face a lower chance of obtaining a COE.

For existing vehicle owners, they are allowed to renew their COEs for five years instead of 10 years, on the condition that these vehicles be de-registered at the end of five years. This condition is highlighted to vehicle owners when they renew their COEs. This is already a concession, as some owners might feel that their cars will not be able to last beyond five years at the point of renewal.


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


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