Adjustment to COE System to Further Reduce Volatility in Supply

1.             From February 2023, the Land Transport Authority (LTA) will adjust the method for computing Certificate of Entitlement (COE) quota available for bidding, to further reduce the quarter-on-quarter volatility of COE supply.

2.             In July 2022, LTA announced the change in method of calculating the number of COEs available for bidding in each quarter, to be based on the rolling average of the number of vehicles deregistered over the previous two quarters. With effect from 1 February 2023, the number of COEs available for bidding in each quarter will be the rolling average of the number of vehicles deregistered over the previous four 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 (February to April 2023) will be 25% of the number of vehicles deregistered from January 2022 to December 2022. The number of COEs for the next quarter (May to July 2023) will be 25% of the number of vehicles deregistered from April 2022 to March 2023.

4.             LTA will continue to release key information on vehicle registration, deregistration 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 February 2023 to April 2023

5.             The Certificate of Entitlement (COE) quota for February 2023 to April 2023 will be 9,437. Under the previous method, the COE quota for February 2023 to April 2023 would have been 8,695. Details of the quota for each COE category are in Annex A. Bidding under this quota will start on 06 February 2023.

6.             The COE quota consists of the following components:

a.             25% of the replacement COEs from vehicles deregistered in the twelve-month period of January 2022 to December 2022;
b.             Provision for 0.25% per annum growth for Category C based on the Category C vehicle population as at 31 December 2022; 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 May 2023 to July 2023 will be made in April 2023.