Forum: Can COE categories be based on vehicle’s OMV?
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I refer to the article “ Acting Transport Minister Jeffrey Siow on COE system, private-hire cars and other transport issues” (
Mr Siow spoke about how the certificate of entitlement (COE) system will not see major changes in the near term, and the reality is that there won’t be space for every Singaporean to own a car.
However, it is worth examining if the existing COE categorisations are presently fit for purpose.
Category A was supposed to be for mass-market, more affordable cars, as opposed to Category B “premium” cars.
However, the technical proxies used in the categorisations to separate mass-market from premium or luxury cars are outdated. Category A’s engine capacity (1,600cc) and power (97kW) specifications predate efficient turbocharged engines and high-value electric vehicles (EVs).
Today, numerous luxury continental models and premium EVs with high open market values (OMVs) fall into Category A, distorting the market and pricing out average people seeking mass-market cars, which Category A was meant for.
I propose we scrap Category A and Category B and replace them with three new categories based on a vehicle’s OMV.
The new categories could be: Category V1 (mass market), for cars with an OMV of $40,000 and below; Category V2 (premium) for cars with an OMV of $40,001 to $70,000; and Category V3 (luxury) for cars with an OMV above $70,000.
Figures can be calibrated for each band based on prevailing market price conditions.
In such a system, Category V1 becomes a true mass-market category. Buyers of such cars will no longer compete with buyers of premium cars.
Second, this is technologically agnostic – unaffected by advances in engine technology.
It also addresses the problem that premium EVs may fall within Category A due to rating by maximum power output.
There is also value in promoting social equity, and the perception of it, by updating the specifications and thus adjusting the ratio of mass-market cars to premium and luxury cars.
Ronald Wong
