Zero car and motorcycle growth not expected to hit COE prices significantly: Lam Pin Min
Road traffic. Photo: TODAY file photo
SINGAPORE — A zero growth rate for cars and motorcycles from February is not expected to affect the quota and premiums of Certificate of Entitlement (COE) significantly, said Senior Minister of State (Transport) Lam Pin Min in Parliament on Monday (Nov 6).
This is because the COE quota is largely determined by the number of vehicles deregistered, he said in response to Member of Parliament Saktiandi Supaat’s question on the impact of the move, announced last month.
The current vehicle growth rate is 0.25 per cent. The zero growth rate will affect Categories A (small cars), B (big or luxury cars) and D (motorcycles), while the growth rate of goods vehicles and buses (Category C) will remain unchanged until the first quarter of 2021.
In a supplementary question, Mr Saktiandi (Bishan-Toa Payoh GRC) asked whether the Ministry of Transport (MOT) would look into COE subsidies or rebates for groups such as families or citizens with disabilities if COE prices rise as a result.
Dr Lam said it was “very difficult” for the Government to consider alternative methods of prioritising COEs to favour a certain group.
“While our current vehicle-quota system is not a perfect solution, it is still the most appropriate at this point in time to allocate a limited and non-basic resource such as vehicle ownership,” he said.
The authorities will continue to invest in improvements to the public transport system, and try innovative transport models, such as private-hire car services, he added.
Tampines GRC MP Desmond Choo asked how the MOT would ensure the zero-growth policy will not affect the e-commerce sector adversely, and if it would consider a separate COE category for commercial motorcycles.
Dr Lam reiterated the authorities’ stand that splitting the COE category for motorcycles further would result in a smaller quota in each sub-category, which may lead to more volatility in prices.
Dr Lam said an urban logistics taskforce comprising various agencies was started last year to look into a more efficient urban logistics system that would cut vehicle movement on the roads.
“Other on-going work … also includes the development of a federated locker network to improve the distribution of goods from businesses to end-consumers,” he said.
Workers’ Party Non-Constituency MP Leon Perera asked if the taskforce would look into speeding up the deployment of drones.
Drone deployment was “on the top of our mind”, and the Government is constantly looking at innovative solutions to manage the situation, replied Dr Lam.
