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Government will not rule out having COE category for company-owned private-hire cars: Chee Hong Tat
However, trade-offs from such a move will have to be studied carefully as there could be "unintended knock-on effects" on the overall COE supply.
SINGAPORE — The government will not rule out the idea of having a separate Certificate of Entitlement (COE) category for private-hire cars owned by companies, said acting transport minister Chee Hong Tat.
In an interview with Lianhe Zaobao published on 9 January, Chee said that the trade-offs from such a move, however, would have to be studied carefully.
Chee, reiterating what he previously told Parliament on 6 November 2023, said that the quota for this new COE category would have to be drawn from the existing Categories A and B if created. This is due to the insufficient COE supply for private-hire cars to draw from the Open Category (Category E), which is the current practice for taxis. Taxi operators are not required to bid for COEs, but instead pay a three-month average of Category A COE prices.
The minister added that it was not a straightforward exercise to divert more of the COE quota to corporate-owned private-hire cars, as it would depend on the assumed demand for such vehicles, which can fluctuate every quarter.
Also read: Latest Singapore COE prices and bidding results (4 January)
Also read: More COE quota to be brought forward from peak years in 'cut-and-fill' approach: MOT
Also read: COE supply to increase for Categories A, B and C during Nov 2023 to Jan 2024 period
Chee also said that there would be "unintended knock-on effects" if there was an under or over-provision of COE quotas for private-hire vehicles. An under-provision of COE quotas could lead to an insufficient supply of private-hire vehicles to meet commuters' needs for point-to-point transport services. On the other hand, moving too much of the existing quota from Categories A and B could cause COE supply to plunge and drive COE prices up, Chee said.
Previously, Chee told Parliament it is "unlikely" that private-hire cars owned by car-leasing companies were the main factor for the increase in COE prices. At the time, Chee was responding to several Members of Parliament (MP) who had raised concerns that car-leasing companies were driving up the high COE prices then.
Several MPs had suggested creating a separate COE category for car-leasing companies or treating them like taxis which do not have to bid for COEs. Chee told Parliament then that the government would study if there were further options beyond COE bidding to address the concerns with car-leasing companies.
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