10/10/2026
š A fairer COE system should mean more than cheaper cars.
LTA is consulting on merging Categories A and B, with rebates for lower value cars and surcharges for higher value models.
There is logic to this. Engine power alone is becoming a less useful way to distinguish an ordinary family car from a premium one.
But a rebate does not guarantee a saving. With limited COEs, buyers could simply bid more, absorbing part of the benefit.
We have also questioned whether PHVs should compete with private buyers in the same pool. A family buying transport for daily life and a fleet buying vehicles to generate income have different considerations.
Yet PHV passengers are the public too. Setting aside a separate quota means fewer COEs elsewhere. Get the balance wrong and either private ownership becomes more expensive, or drivers and passengers face higher rentals and fares.
Two things could make this review more meaningful:
1ļøā£ Make the final price transparent.
Require a clear breakdown of the car price without COE, the COE premium, any rebate or surcharge, and financing conditions. Buyers should be able to see whether the rebate actually reduces what they pay.
2ļøā£ Recognise transport needs beyond the price of the car.
A wealthy household buying another small car could qualify for a rebate. A caregiver needing a larger vehicle might not.
Targeted support for accessible transport and essential caregiving journeys could help people whose needs are greatest, including those who cannot afford to own a car at all.
Singapore has limited road space. We cannot promise everyone a car. But we can ask whether the system allocates that space fairly and provides workable alternatives.
What should fairness in the COE system mean: the car you buy, the householdās needs, or how the vehicle is used?
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