SINGAPORE — On 19 Apr, Certificate of Entitlement (COE) premiums experienced a significant increase in the latest bidding exercise, with Categories A and B reaching new record highs.
Cat A cars, which are defined as those with an engine capacity of 1,600cc or below and horsepower not exceeding 130bhp, saw their premiums jump from S$96,501 in the last exercise on 5 April to S$103,721.
Meanwhile, premiums for larger and more powerful Cat B vehicles also increased, rising from S$118,501 to S$120,889.
Additionally, open-category COEs, applicable for any vehicle type but predominantly used for large cars, reached an all-time high at S$124,501, surpassing the previous record of S$118,990.
COE premium contributed to S$3.86 billion or 4% of total operating revenue. for Singapore in FY2022.
Lim Tean, the political party Peoples Voice leader and a practising lawyer in Singapore, expressed his shock at the recent prices for the Category E, open-category COEs.
He questioned whether Transport Minister S Iswaran would disclose the number of Permanent Residents (PRs) and foreigners who bid and were successful in the last exercise.
‘Better apply for a BTO flat instead’
Numerous netizens have expressed their frustration over the high COE prices. Some even went on to ridicule the fact that the COE price is higher than the actual cost of the vehicle, while others commented that one could consider applying for a BTO flat instead of paying such exorbitant prices.
When commenting on The Straits Times’ Facebook post, several individuals have questioned whether people would still be able to afford cars and bikes after 2030.
Despite the record-breaking surge, many have noted that the price does not seem to be an issue for the wealthy.
When a netizen asked whether the surge was caused by demand or COE supply, another suggests that the surge was due to rental companies bidding for COEs so that they can charge higher rental prices and believed that the number of rental companies should be controlled.
“COE bidding should be categorised by Singaporean and non-Singaporean”
When commenting on Lim Tean’s Facebook post, some of the netizens echoed with Mr Lim’s call, suggesting that the COE bidding should be categorised by Singaporean and non-Singaporeans, and the bidding price for the latter should be on top of the locals.
A netizen expressed their frustration over the COE system, stating that with prices exceeding S$100,000 for cars and S$10,000 for motorbikes just to obtain a permit to drive on the road, there are still additional costs to consider such as the price of the vehicle, insurance, ERP, and road tax.
