LTA Issues Adjustment To Reduce Volatility For Cat A and B COEs
Six-figure COE premiums have proven too substantial even for those implementing them, but a crystal ball is still required to determine how it’ll all pan out these 3 months.
The Land Transport Authority (LTA) will be making a one-time adjustment to reduce the volatility of supply in COE quota for Categories A and B. LTA will bring forward the guaranteed de-registrations of 5-year non-extendable COEs which are due to expire when supply is projected to be higher and distribute them over the next few quarters.
Above: Previous quota calculation from May to July 2023
A total of about 6,000 such COEs will be redistributed gradually over the next few quarters, starting from the second bidding exercise in May, which will start on 15 May 2023. With this, the COE quota for May 2023 to July 2023 will be increased from 9,575 to 10,431. Category A will see an increase of 24%, while Category B will see an increase of 15% for the remaining five bidding exercises for this quarter.
Above: Latest quota calculation from May to July 2023
This does not change the zero Vehicle Growth Rate (VGR) on the overall car population. LTA has identified the specific vehicles in the vehicle registry with these 5-year non-extendable COEs. When the identified vehicles are deregistered in future, their quota will not be returned to the pool for bidding.
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