COE System Refined to 3-Monthly Recycling Periods to Be More Responsive
1. From February 2014, the Land Transport Authority (LTA) will refine the COE quota system to make it more responsive to de-registrations. Currently, the COE quota is determined every six months, taking into account the number of vehicles that were de-registered in the preceding six months. LTA has decided to move from this 6-monthly recycling period for determining COE quota to 3-monthly. A shorter recycling period will enable better and more prompt matching of the number of new COEs to be issued to replace de-registered vehicles.
2. When the COE quota methodology was changed in 2010 to be based on actual de-registrations instead of projected de-registrations, the quota period was shortened to six months instead of a year. The intention then was to shorten this further in due course to make the system even more responsive. During the COE public consultation sessions held by LTA in mid-2013, this was also suggested by some industry players.
3. With generally rising vehicle de-registration numbers in recent months, and with the trend likely to continue until about 2016, this is an appropriate juncture to make the change. In such a trend, a 3-month recycling period would be more responsive than a 6-month system in putting back COE quotas into the system to meet demand from owners who have de-registered their vehicles. A later change would delay the benefits to the public of a more responsive quota system.
4. LTA will continue to release key information on vehicle registration, de-registration and population changes on its website at www.lta.gov.sg/content/ltaweb/en/publications-and-research.html so that interested parties and motor dealers can access the information for their own calculations and business planning purposes.
Schedule of Announcements of COE Quota1
Corresponding Bidding Period
February to April of that year
May to July of that year
August to October of that year
November of that year to January of the following year
6. Similar to the current system, the quarterly COE quota to be made available will factor in the allowable increase in vehicle population as well as adjustments for the change in taxi population, expired COEs etc. The remaining claw-back of COEs issued as a result of the over-projection of vehicle de-registrations under the previous COE quota methodology would also continue until January 2015 as previously announced.
COE Quota for February to April 2014
7. The total COE quota for the period from February to April 2014 will be 9,127. This translates to a monthly COE quota of about 3,043 for all categories combined (about 5% higher compared to the 2,884 monthly quota that would have been allocated under the status quo). Details of the quota for each vehicle category are listed in Annex A. Bidding under this quota will start with the first open bidding exercise in February 2014.
8. The COE quota consists of the following components:
- Provision for 0.5% per annum vehicle growth based on the vehicle population as at 31 December 2013;
- Replacement COEs for vehicles de-registered in the preceding three-month period of October to December 2013;
- Adjustments for changes in the taxi population, expired COEs and over-projections of vehicle de-registrations in 2008/2009.
9. The next announcement of available
Annex A: Monthly COE Quota for February to April 2014
COE Quota for Feb 2014 to Apr 2014
(1) The one-month difference between the end of the recycling period and the next