Adjournment motion on a more equitable COE system

The Progress Singapore Party (PSP) has proposed a hybrid Certificate of Entitlement (COE) system that takes into account both economic and social factors in the allocation of private vehicles, which will only apply to categories A, B and D. NCMP Hazel Poa highlighted the key features in an adjournment motion in Parliament on Tuesday (Jan 7). She also proposed the creation of a separate COE category for private-hire cars. Elaborating on the COE system that takes into account needs factors, she said bids should be placed using COE credits. These would be distributed by the Government to adult Singapore citizens and Permanent Residents each month. Responding, Senior Minister of State for Transport Amy Khor noted that while a COE credits allocation framework may be well-intentioned, it is unlikely to be effective in practice. She asked how the prices for COE credits will be set and if it would inadvertently create more friction and complexity in the process. It may potentially drive the price of credits underground, she said. To guard against black markets, the Government will need to set up a whole trading and enforcement regime which will ultimately cost taxpayers even more, she added.