Politics1 min read

COE review: Most people support merging car categories, and five-band rebate system

By · Published by Everything Blog

In short

Transport Minister Jeffrey Siow informed Parliament that public consultation feedback favored a tiered rebate model over a three-band alternative to reduce sudden price spikes. The Land Transport Authority is currently evaluating these submissions, with a conclusive policy decision slated for the first half of 2027. Amid legislative debates over vehicle affordability, Siow noted that road infrastructure already covers over 12 percent of the country's land area, cementing public transport as the strategic priority.

Key points

  • A five-band adjustment model is preferred by the public because smaller financial increme…: A five-band adjustment model is preferred by the public because smaller financial increments minimize sharp cost differences between vehicle tiers.
  • Transport planners aim to rebuild a durable pricing divide between luxury vehicles and en…: Transport planners aim to rebuild a durable pricing divide between luxury vehicles and entry-level cars while restricting vehicle growth.
  • Expanding roads remains constrained because existing thoroughfares already occupy more th…: Expanding roads remains constrained because existing thoroughfares already occupy more than 12 percent of the nation's total land area.

Sources checked by our analysis pipeline: 1

- Most respondents support merging the two car COE categories and prefer a five-band “feebate” system. The Land Transport Authority is still studying submissions, with the review due in the first half of 2027.

- The five-band option uses smaller rebates and surcharges to reduce “cliff effects”. Transport Minister Jeffrey Siow said it makes prices fairer for mass-market and luxury cars.

- Siow said COE rules must control car numbers and support public transport, which gets about $6 billion to $7 billion a year. MPs also raised concerns about affordability for households, workers and small businesses.

AI generated

SINGAPORE – Most of the people who provided feedback for a review of the certificate of entitlement (COE) system supported merging categories A and B, with a preference for five-band fee rebate structure.

The five-band fee rebate structure will cover the range of rebates and surcharges, based on the open market value of cars, with the “aim of restoring a permanent price distinction in COE premiums between mass-market and luxury cars”, said Transport Minister Jeffrey Siow.

Speaking in Parliament on Nov 3,…

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