PSP proposes COE credit system instead of cash for bidding

[kobayashiGT]

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. The number of COE credits received by each person will depend on factors such as nationality and the number of children they have.

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 pointed out that it is rather complicated, and Singapore’s system today has a transparent single price mechanism for every bidding exercise.

More details here: https://cna.asia/42bcJGG 

[Arogab]

Well said, the title "PSP propose" will already tell you it is not going to be implemented lah

[kobayashiGT]

On 1/9/2025 at 9:30 AM, kobayashiGT said:

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. The number of COE credits received by each person will depend on factors such as nationality and the number of children they have.

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 pointed out that it is rather complicated, and Singapore’s system today has a transparent single price mechanism for every bidding exercise.

More details here: https://cna.asia/42bcJGG 

my personal opinion on the COE Credit suggestion. 

It is definitely making the COE system more complicated. There is also foreigner and company that also buying cars in Singapore, like that will make Singapore not business friendly towards such profile. 

Yes, we have a PHV issue where they are competing COE quota with us. Business who bidded whichever COE will eventually pass the cost to the driver, since the driver is making a living out of it, end of the day, the cost will then pass to the consumers. 

the thing I think we need to consider for this is not just for the motorist, as we only make up a small population. it has to be the general commuters too. 

Most of the time, is the corporates who help to bid for COE, they bid high, they can lump inside the selling price and earn loan interest from there. 

My proposal is this. . . 

For Cat A car, only individual singpass can bid for COE, you bid for your own COE. then afterwhich, maybe create a similar HDB loan for this group of buyer for the COE purchase. we can capped the interest rate at 2.6% at a maximum tenure of 6 years or so. So to make it accessible for the people who really need a car and then the corporate cannot earn from the COE profiting. 

If PHV want to bid for Cat A Coe vehicle, they will have to pay an upfront additional stamp duty lor to make it fair.  

If the demand side we can manage the overall expectation, price can come down, we can also benefit the general commuter, as the ride fare might also see a decrease. 

Cat B and open cat, let it be baz. who pocket is deep, who get to drive flashy car. 

[kobayashiGT]

On 1/9/2025 at 9:48 AM, Arogab said:

Well said, the title "PSP propose" will already tell you it is not going to be implemented lah

you see the video first. hahaha. The credit system is fascinating. children also have credit one. 😄

I scare they go school sell credit to each other leh. hahahah 

[Arogab]

On 1/9/2025 at 8:50 AM, kobayashiGT said:

you see the video first. hahaha. The credit system is fascinating. children also have credit one. 😄

I scare they go school sell credit to each other leh. hahahah 

I see the eyes my eyes also roll liao 😂

[Kopites]

On 1/9/2025 at 9:49 AM, kobayashiGT said:

My proposal is this. . . 

For Cat A car, only individual singpass can bid for COE, you bid for your own COE. then afterwhich, maybe create a similar HDB loan for this group of buyer for the COE purchase. we can capped the interest rate at 2.6% at a maximum tenure of 6 years or so. So to make it accessible for the people who really need a car and then the corporate cannot earn from the COE profiting. 

 

Why is there a need for loan on coe. How about road taxes, parking...?

Diagreed. Should be full cash instead of taking up loan for a mere transport from point a to b. 

Be pragmatic take public transport and short term car hire if one need to take loan. 

As for corporate, it doesn't matter hiw high/low is the coe. The ultimate costs will be pass to consumer. 

 

Edited 20 hours ago by Kopites

[Carbon82]

This one use backside to think also can know the answer.

Anything that can potentially hurt the pocket of government coffer is a no go lah. Further more much more effort will be needed for the proposed credit system, how can?

If your boss ask you to do more so that you will get less pay, will you accept? 🤣

[kobayashiGT]

On 1/9/2025 at 10:04 AM, Kopites said:

Why is there a need for loan on coe. How about road taxes, parking...?

Diagreed. Should be full cash instead of taking up loan for a mere transport from point a to b. 

Be pragmatic take public transport and short term car hire if one need to take loan. 

As for corporate, it doesn't matter hiw high/low is the coe. The ultimate costs will be pass to consumer. 

 

woah. like that i will have to revert back to bus and mrt liao leh. hahahah. give chance leh.  

[kobayashiGT]

On 1/9/2025 at 10:06 AM, Carbon82 said:

This one use backside to think also can know the answer.

Anything that can potentially hurt the pocket of government coffer is a no go lah. Further more much more effort will be needed for the proposed credit system, how can?

If your boss ask you to do more so that you will get less pay, will you accept? 🤣

your one sentence summarized the whole context sia! 

brilliant! 

[inlinesix]

That's why no one bother with their idea

[Invigorated]

On 1/9/2025 at 9:30 AM, kobayashiGT said:

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. The number of COE credits received by each person will depend on factors such as nationality and the number of children they have.

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 pointed out that it is rather complicated, and Singapore’s system today has a transparent single price mechanism for every bidding exercise.

More details here: https://cna.asia/42bcJGG 

The separate category for private hire cars isn't new. They were already examining it since last year.

It's obvious that demand is strong despite the high COE, especially considering the interest in EVs today. Higher incomes also have led us to where we are today. Today's 100k may well be 50k just 6-7 years back. Someone who was willing to pay 50k then may well be willing to pay 100k now. The high housing prices causing many to be flushed with cash isn't helping too. 

That said, I think a more equitable system that is more straightforward would be like an absd type of tax. Tax on those that buy more than one car per household (remember Dr Koh), also more tax on company cars and those owned by foreigners. 

Giving too big an incentive to families and those with disabilities may not necessarily be fair as many may well already be well to do. End up is giving more to those who already have a lot. Singles may also need a car so that would be unfair to them e.g. aging parents to send around etc..

Also, make bidders bid for their own COE so dealers cannot do it for them. This ensures that buyers know exactly how much they are willing and really paying for.

Aside from COE issues, also include a mileage registration system to track actual mileages.. this isn't difficult since cars go for inspection.. perhaps all servicing centers or insurance companies also have to update actual mileage on a gov platform. 

[serenade]

Agree and support that the only way to control runaway COE prices is to make it mandatory for non-corporate buyers to bid for the COE themselves. This takes away the AD's vested interest to sell cars at any cost, and to pass the cost on to the buyer.

The way it is now, the dealers, the banks giving loans and the MOF are all happy that prices are going up and up as they all benefit from the higher prices. Only the buyers and those who need a car but cannot afford come to complain about the price. 

But there are thousands of us who complain but still pay $120k for a COE. For those who drop out, another will take his place. That's the trouble with us. We are not willing to suffer collectively, and force the system to change. We make our own bed, we sleep in it. 

[inlinesix]

LOL!

I have been talking about SingPass bidding of COE for all Cat except Open for the longest time.

[Sosaria]

On 1/9/2025 at 9:50 AM, kobayashiGT said:

you see the video first. hahaha. The credit system is fascinating. children also have credit one. 😄

I scare they go school sell credit to each other leh. hahahah 

Generally those large families are from lower income group who would not be able to afford a car with the high prices here. But with many kids, they have many credits  which won't be used so they can sell to DINKs ??

[Ahwhye]

Ahgong said there is nothing wrong to collect more money FULL STOP.

[kobayashiGT]

On 1/9/2025 at 11:05 AM, Sosaria said:

Generally those large families are from lower income group who would not be able to afford a car with the high prices here. But with many kids, they have many credits  which won't be used so they can sell to DINKs ??

Sell to BYD lor. BYD can churn car out. hahaha 

[mersaylee]

...and from the horse mouth that "...it is complicated..." knn...3 pcs meal obu not complicated!? 

Ccb pxp 🤬

[Beanoyip]

COE and owning of cars are for the rich.. period. If you can't afford, please take the bus/mrt.