Fall in motorcycle COE prices shows market is working: Transport Minister

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SINGAPORE — Measures will be taken when needed to reduce frictions and deter speculation in the certificate of entitlement (COE) market so that supply better matches demand, said Transport Minister S. Iswaran. But he ruled out changes such as subdividing COE categories, and said the fall in motorcycle COE premiums in the most recent bidding exercise shows that the market...

Transport Minister S. Iswaran speaking at the launch of a community minimart at Jampacked@West Coast on May 7, 2023.SINGAPORE — Measures will be taken when needed to reduce frictions and deter speculation in the certificate of entitlement market so that supply better matches demand, said Transport Minister S. Iswaran.

His remarks on COE come amid rising premiums, which has seen some categories hit record highs in recent tender exercises. COE premiums for smaller cars breached the $100,000 mark for the first time in April, while motorcycle premiums also went above $13,000 in the past year. "But it also tells us that we can do more to improve the functioning of the market and to deter any speculative activities, and that's why we made a few further moves."

Asked by the media about whether the Government would consider subdividing COE categories to separate higher-end motorcycles from the rest, Mr Iswaran said a smaller supply for each category would mean more volatile prices, as a small increase in demand would drive prices up significantly. Mr Iswaran on Sunday also launched Jampacked@West Coast, a minimart that will be open to 161 vulnerable families in the area to purchase food items with credits of $50 per month.

 

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Latest COE measures meant to improve overall functioning of market: IswaranHe said the fall in motorcycle COE premiums in the most recent bidding exercise shows the market is functioning as it should be. Read more at straitstimes.com.
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