COE supply to reduce by 11.5% for Aug-Oct period under new calculation method

·Finance Editor
·2-min read
Motorists wait at a traffic junction to enter the central business district in Singapore, to illustrate a story on reduction in COE supply. (Photo by Roslan RAHMAN / AFP) (Photo by ROSLAN RAHMAN/AFP via Getty Images)
COE supply to reduce by 11.5 per cent for Aug-Oct period under new calculation method. (Photo by Roslan RAHMAN / AFP) (Photo by ROSLAN RAHMAN/AFP via Getty Images)

SINGAPORE – The Certificate of Entitlement (COE) supply for the period of August to October 2022 will be cut by 11.5 per cent under a new counting method.

In a press release on Friday (22 July), the Land Transport Authority (LTA) said that this works out to 10,581 COEs, which translates to a monthly quota of 3,526 COEs for all categories combined.

This quota is the first one calculated using a new method for computing the number of COEs available for bidding. The LTA said that the new method is aimed at reducing "the quarter-on-quarter volatility of COE supply while being responsive in returning the COEs of deregistered vehicles to the bidding pool".

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"Currently, the number of COEs available for bidding in each quarter is primarily based on the number of vehicles deregistered ('deregistrations') in the previous quarter, with one month lag time for processing and computation," the LTA said.

"With effect from 1 August 2022, the number of COEs available for bidding in each quarter will be based on a rolling average of deregistrations over the last two quarters. The start of each new COE quota bidding period will continue to be one month after the close of each calendar quarter."

To illustrate, the LTA added, "the number of COEs for the upcoming quarter (August to October 2022) will be half the number of vehicles deregistered from January 2022 to June 2022". It follows then that the number of COEs for the quarter thereafter (November 2022 to January 2023) will be half the number of vehicles deregistered from April 2022 to September 2022.

Most severe cut for Category C

In the new quota, the commercial vehicle category will receive the biggest reduction in COEs, among all types.

From August to October, the average monthly quota for this category will be 166, down 19 per cent from the period before.

The next quota announcement for the bidding period of November 2022 to January 2023 will be made in October.

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