In October 2011, the Land Transport Authority (LTA) announced a reduction in vehicle growth rates from the current 1.5% p.a. Now LTA announced it has completed the study and will implement measures with effect from August 2012.

Following the review, the vehicle growth rate will be reduced to 1.0% p.a. from August 2012, before a further reduction to 0.5% p.a. from February 2013 to January 2015. This allows for an estimated 390 more COEs, or about 10% of the current monthly quota from August 2012 to January 2013.

A total of 4,789 COEs comprising over-projections from 2008 and 2009 and expired COEs from 2009 were scheduled for bidding from August 2012 to January 2014. These will be postponed till August 2013 and run till January 2015, allowing for 266 more COEs or about 7% of the current monthly quota per month.

Through these two measures LTA aims for a smoother transition to lower vehicle growth rates, as the Government continues to manage vehicle population growth.

Also announced was a reduction in contribution rates to CAT E COEs. Currently, 25% of COEs from de-registered vehicles in each category form the quota for the CAT E open category, and can be used to register vehicles from CAT A to CAT D.

However the contribution rate to CAT E will be gradually reduced to 20% from August 2012, and 15% from February 2013. Through this more COEs from de-registered vehicles will return to their respective categories, leaving fewer quotas in CAT E.

The COE quota for the periods of August 2012 to January 2013 will be announced in July 2012.