Browse
Log in / Register
Share
On July 27, 2024, Singapore's Land Transport Authority (LTA) is evaluating public feedback on potential reforms to the Certificate of Entitlement (COE) system, with key proposals including merging categories A and B and shifting to value-based fees. This review aims to address narrowing price gaps between car segments and ensure the system meets evolving urban transport needs amid rising vehicle costs and sustainability goals.
The COE system, a cornerstone of Singapore's vehicle quota management, requires buyers to bid for permits before purchasing cars. Currently, Category A covers smaller, mass-market cars with engine capacities up to 1,600cc and power ratings below 97kW, while Category B includes larger, higher-end models. In recent years, manufacturers have adjusted specifications to qualify for Category A, leading to a convergence in premiums—Category A has surpassed Category B three times in 2024 alone. This trend prompted LTA to announce a review in March, focusing on whether engine-based criteria remain effective in differentiating vehicle types.
During focus group discussions as part of the Land Transport Master Plan refresh, participants including MPs, industry representatives, and academics proposed merging Categories A and B into a single category. Instead of engine metrics, discounts and surcharges would tie to a vehicle's Open Market Value (OMV), ensuring owners of premium cars pay more while making mass-market models accessible. This value-based approach could better align costs with car affordability and usage patterns, reducing market distortions caused by specification tweaks. Other ideas included reclassifying cars by size, creating separate categories for leasing companies, and imposing surcharges on multiple-car ownership to promote equity.
Beyond COE adjustments, consultations emphasized reducing reliance on private cars. Participants called for enhanced first- and last-mile connectivity through expanded cycling infrastructure, sheltered walkways, and family-friendly car-sharing services. There was strong support for prioritizing pedestrians and public transport in road design, with measures like lower speed limits near schools and town centers. Micromobility options such as e-scooters and power-assisted bicycles were seen as vital complements to transit, though adoption hinges on improved safety, segregated paths, and better integration with buses and trains.
Inclusivity emerged as a recurring theme, with feedback highlighting challenges for families with young children, seniors, and people with disabilities. Participants urged upgrades like more nursing rooms at MRT stations and awareness campaigns for family-friendly features. The difficulties faced by visually impaired commuters underscored the need for clearer norms on path sharing and considerate behavior toward vulnerable users.
From a global perspective, Singapore's COE reforms mirror trends in cities like London and New York, which use congestion charges and emissions-based fees to manage traffic and equity. For instance, New York's proposed congestion pricing targets high-value zones to fund transit improvements, while California incentivizes electric vehicles through rebates tied to income levels. These examples offer valuable lessons for Singapore's value-based surcharge model, potentially enhancing its effectiveness in curbing car dependency and promoting sustainable transport.
LTA has engaged over 7,000 people since November 2023 through online responses and focus groups, with a consultation paper expected later this year to gather detailed feedback. The review is set to conclude by end-2026, shaping a refreshed Land Transport Master Plan for release in 2027. As urban mobility evolves, Singapore's proactive stance may influence other dense cities grappling with similar congestion and equity challenges, highlighting the COE system's adaptability in a rapidly changing automotive landscape.
