Certificate of Entitlement premiums hit a record high in July 2022 – the highest in 28 years. The system was first introduced to reduce traffic congestion and limit the number of cars in land scarce Singapore. But in a bid to keep cars off the road, have we unintentionally driven away those who really need one? In this episode, host Steven Chia finds out what’s behind these sky high prices, and asks: how fair is the COE system itself?
0:00 Cost of a car in Singapore: the breakdown
2:50 How are COE prices derived?
5:30 Why are COE prices so high now?
8:27 Could Tesla be behind COE price surge?
11:26 Does Singapore’s COE system work?
14:26 Car ownership: a young family’s wish
17:27 COE: Can these changes be made?
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Your experts panel are not actually experts leh. They're I'm the trade hence their views are biased. Anyway, don't see any feasible.n constructive solutions after watching the clip.
For COE i suggest
1. Balloting system or
2. Bid by % of OMV so it depends on the car you buying.
3. Only those who need it can bid. E.g. Those with children below 13, disabled or elderly.
The rest must buy from used car. Can promote birth rate too.
4. Super OPC, COE FREE but 100% only can drive outside restricted timing in Singapore. No e-day licence.
One car person for all above system.
Maybe you can limit COEs to one per household and maybe increase COEs by doing some form or coding like what we do here in PH where certain days a certain coded cars are not allowed on the road
new car? what happened to the s class?
Dealers re just talking BS. Having the COE separated from car prices like Tesla did re way more fair and transparent
you do not need cars in singapore. there is grab and taxis. should focus more on ebike and electronic tuk tuk. the gov is doing the right thing.
If the country is all out to boost birth rate, it should consider every possible option to achieve this goal. Housing is one, car could be another .
Wait the experts said pay-as-you-bid (PAYB) isn't feasible??? Their points about quota is an entirely different matter irrelevant to whether the price is PAYB or the current system. The PAYB system targets bidding behaviour, not quota,which has nothing to do with feasibility.
Dealers should not be allowed to bid. Only individual buyers should be the ones bidding…….
Is this episode a precursor for a change in policy with regards to COE? COE's model is way too dated and needs revamping to match the times.
To be fair to everyone (rich or poor) the current COE tendering system should be revised to follow HDB balloting system for BTO flat, without increasing the number of car on the road set by the Government. Upon securing a Certificate of entirement, motorist will then paid the Government a flat rate according to Cat A ($30,000), B ($50,000) etc set by the Government. This system is fair to everyone. Besides, the Government will not be accused of making money out of COE. Hope this suggestion is acceptable to the Government.
A quick fix to soak up the excess liquidity cash now is to require deposit of the full reserve amount, instead of the flat $10k. Confirmed stop overbidding by dealers and buyers.
Many young families with infants and old folks cannot even afford ONE simple family car but have to rely on public transport which include myself while the ultra rich can collect 4 or 5 Lamborghinis and Bentleys as if they are toys!
This is NOT Meritocracy but policies based on Elitism using “limited space” to as an excuse!
Oh, please, don’t compare with KL… Singapore Social economic guy, should stop comparing Singapore as apple and Malaysia as oranges… how can compare…
Many forgot that COE and registration taxes are rebated when the car is sold. Singaporeans are not forced to drive the same car for 10 years. It is a form of store of value. And singaporeans not forced to buy only when prices are high. So many complainers did nothing when COE was low from 2018 till Jan 2022.
No wonder outsiders say SGeans very rich.. Despite prices that could get you a house elsewhere, we still buy cars. This convenience is high cost indeed..
Good job
Limit one car to each driving license for private ownership.
How does the high net worth drive up coe prices? The car dealers are the ones who bid for the coes.
Dollar to dollar Malaysia car prices are more expensive
Just thinking out loud here.
1) Additional duties,ABSD, are imposed on buying 2nd and more property, likewise for corporate ownership too, why not do the same for cars?
Consideration for car count, can be based on registered household addresses, instead of solely by the individual ownership.
2) instead of rebates, which will burden the gov by taxpayers money to subsidize car ownership, why not have a tax structure whereby it favours ppl who need them more, apart from the duties that I have mentioned above.
E.g. family within same household, couple+children: little or no tax
Individuals: tax higher
Corporate ownership: tax highest.
Possible impacts from these proposed policies.
– Ppl likely to be encouraged to form their own household and family.
– ppl likely to prioritize home ownership over cars.
– increase tax revenues for gov, by indirectly taxing those that are willing to pay the additional taxes to own a car.
This could perhaps be implemented together with the current COE system gradually to prevent shocking the current market
What do you all think?
You just don't get it. Car prices are supposed to go up. There is nothing fair or unfair about it.
Of course they won't implement a price based categorization. Plebs should go in the bus, if you're rich you have more rights.
What up la!
Maximise exploitation tactics
Time to make your vote speak.
Welcome to Singapore, our cars cost 200,000 dollars and we still keep on buying them. Are we insane? Probably.
Some Singappreans can afford expemsive cars. Some can affprd normal cars. Some can only afford bicycles.
New levy for extra cars per household. Ok. Like property stamp duty, additional 20% on top of current system for 2nd car, 50% for 3rd car, 100% for 4th car.
Just take bus
A workable temporary measure to soak up the excess cash in singaporeans' pockets is to require deposit of the FULL reserve amount, instead of the flat $10k now. And then refund the difference only at the end of the month. Confirmed stop overbidding by dealers and buyers due to liquidity dry up.
https://www.youtube.com/watch?v=4hFsrU8KNxw
Gonna get profma soon?
The inconvenient possible truth is that the COE is a type of wealth tax. All the agents refused to pay as you bid because they want to sell the cars and they have vested interest in securing the COE for their car. Hence, they are bidding for the COE as high as they can because they want the COE. No COE how to sell the car? Reason why government not doing much to address this is because it is very hard to tax the rich. The system that allows investments to flow into SG is also the system that allows the rich to game the system. If control by 1 car per household, it would backfire. The rich have so many properties. All they need to do is to house each family member under each condo, and viola, all can have cars. Father owns Condo A, daughter gets Condo B, Mum gets Condo C, Son gets Condo D. But in reality, they all stay at Bungalow E with all the cars parked there. Rich will ALWAYS game the system. So, COE in fact is tool unfortunately that the government will not do much about it.
successful bidders should pay the amount they bid for.
I think it should be seperated into income/month
So many things have changed since COE was first introduced. We have more population, more foreigners, more ultra rich, more private hire cars but COE system and road capacity remain largely the same… better public transport is not the key to solve all the problem. A car is some time a need, not a luxury item that is limited to certain group of people.
LTA: We let the media talk about it as if we are finding solutions so that they dont know that we like the coe to stay high.
the public transport is good but not that good yet where people still need to walk in the rain, wait for 10min for a bus, change to a train, stand for 1 hour then wait for another 10min for a bus just to get to work whereas a car can resolve all these difficulty in 30minutes.
the question is, is our public transport really serving each individual to the maximum?? if it cannot, then it doesn't justify that we should have high COE price.
in this case, the ministers should set example where all of them take public transport instead since they want to be comfortable but deny the comfort of private transport to the citizens.
I don't know why but Singaporeans are very stupid. this is the least everyone can demand of our minister when they set ridiculous policies like car lite etc.
do you really think Singapore a super tiny dot car lite can help our planet environment when our neighboring country are just flooded with cars???
A workable temporary measure to soak up the excess cash in singaporeans' pockets is to require deposit of the FULL reserve amount, instead of the flat $10k now. And then refund the difference only at the end of the month. Confirmed stop overbidding by dealers and buyers due to liquidity dry up.
Cat A limited to 1.5l/150bhp private car owners and Cat B private car owners up to 3L/300bhp should be balloted while Cat E (Open to all cars and owners) is Bidded for. Each household is allowed 1 ballot and unlimited bids. Balloted COE tagged to household (optionally transferable at the price of Cat E) and Bidded COE tagged to car.
How to afford a car. Singaporean all low income salary. Lol
Please do a second episode 😁
Moving forward, there can be a separate COE category for NEW super cars buyers. Cars from Lamborgini, McLaren, Ferrari, Aston Martin etc… Cars from these super car brands with a sticker price of $800,000 and above, the cost of their COE to be 1.5 to 2 times. Example if COE is at 100k, they need to pay at least 150k minimum or more if they really want their car. After all, for those who can afford super cars, COE should be peanuts to them.
Secondly, decrease the maximum years of loan for cars to 3 years AND make the down payment a mandatory of 80% of the sticker price of the car. This would drastically decrease the amount of cars being sold. Too bad for the car sales people but Singapore is already way to congested for its size.