Adjustments to COE System to Smoothen Quarterly Availability
1. From August 2022, the Land Transport Authority (LTA) will adjust the method for computing Certificate of Entitlement (COE) quota available for bidding, to reduce the quarter-on-quarter volatility of COE supply while being responsive in returning the COEs of deregistered vehicles to the bidding pool.
2. Currently, the number of COEs available for bidding in each quarter, is primarily based on the number of vehicles deregistered (“deregistrations”) in the previous quarter, with one month lag time for processing and computation. With effect from 1 August 2022, the number of COEs available for bidding in each quarter will be based on a rolling average of deregistrations over the last two quarters. The start of each new COE quota bidding period will continue to be one month after the close of each calendar quarter.
3. To illustrate, the number of COEs for the upcoming quarter (August to October 2022) will be half the number of vehicles deregistered from January 2022 to June 2022. The number of COEs for the quarter thereafter (November 2022 to January 2023) will be half the number of vehicles deregistered from April 2022 to September 2022.
4. LTA will continue to release key information on vehicle registration, de-registration and population changes on its website at https://www.lta.gov.sg/content/ltagov/en/who_we_are/statistics_and_publications/statistics.html.
COE Quota for August to October 2022
5. Under the adjusted method, the COE quota for August 2022 to October 2022 will be 10,581. This translates to a monthly quota of 3,526 COEs for all categories combined. Details of the quota for each COE category are in Annex A. Bidding under this quota will start on 1 August 2022.
6. The COE quota consists of the following components:
a. 50% of the replacement COEs from vehicles deregistered in the six-month period of January 2022 to June 2022;
b. Provision for 0.25% per annum growth for Category C based on the Category C vehicle population as at 31 December 2021; and
c. Adjustments for changes in the taxi population, replacement of commercial vehicles under the Early Turnover Scheme, and expired COEs.
7. The next quota announcement for the bidding period of November 2022 to January 2023 will be made in October 2022.