Jamus Lim on cost of living crisis

The existing vehicle quota and COE system is broken and while the Government has made tweaks, these do not address the underlying problem that has led to boom-bust cycles in COE prices, said MP Jamus Lim. The most important driver of supply, he said, is the imbalanced monthly COE quota, while some of the most prominent sources of demand are private-hire car (PHC) operators and wealthy multiple-car buyers. Assoc Prof Lim urged the Government to better manage the COE system, which has been a major driver of the rising cost of living. He put forward several proposals - smooth the vehicle quota supply by transferring excess quotas from high-supply years to low-supply ones; end the practice of reimbursing early-deregistered COEs at book value; allow COE transferability not to other car owners but to other cars in the same category; bar dealers from bidding on COEs; and require second car purchases to be in the Open Category. Bidders for high-usage PHCs should also do so in the Open Category but be allowed to pay the respective Category A or B prices.