10-Year COE Period Is to Ensure System Is Fair

Media Replies 19 Jan 2009 COE system

I refer to Mr Foong Swee Kong's letter, 'Renewable 5-year COEs can help S'poreans cut costs' (My Paper, 8 January 2009).

Mr Foong suggested that the five-year COE be made renewable to reduce living costs. The standard 10-year Certificate of Entitlement (COE) period for the use of a vehicle is to ensure a fair system for both buyers of new vehicles and existing owners who renew their COE. The 5-year COE is a special concession introduced for existing vehicle owners who, at the point of COE renewal, feel that their vehicles might not last beyond the next five years. The vehicle is therefore required to be de-registered upon expiry of the five-year COE. The non-renewal condition is made known to all vehicle owners, and thus it is up to individual owners to decide.

On Mr Foong's suggestion that the rise in motorcycle COE prices in recent years is due Malaysians purchasing Singapore-registered motorcycles, our statistics show that the proportion of Singapore-registered motorcycles owned by Malaysians have remained constant over the past few years. Non-Singaporeans can purchase and register vehicles in Singapore as long as they comply with the registration requirements and pay the requisite taxes for their vehicles.

We thank Mr Foong for the opportunity to clarify.


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