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Category A COE premium hits record S$139,001 in latest bidding exercise
Singapore’s Category A Certificate of Entitlement (COE) premium reached a record S$139,001 in the latest bidding exercise, highlighting continued pressure on car costs. The Land Transport Authority (LTA) said strong demand for mass-market electric vehicles and a recent car expo may have contributed.
Category A premiums rose 5.3 per cent from S$132,004, putting them S$6,667 above Category B’s S$132,334. Commercial vehicle premiums stayed at S$92,000, motorcycle premiums fell to S$10,689, and open category premiums rose to S$135,998; 4,722 bids were received for 3,259 available COEs. The next quota period will have 19,298 COEs, up 1.1 per cent, while LTA continues to study proposals to merge the two car categories.
In short
- Category A COE premium set a record at S$139,001.
- It was S$6,667 higher than Category B.
- LTA cited EV demand and is reviewing the COE system.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
A case for merging the two car categories is that a single pool could make access to COEs less dependent on how vehicles are classified, especially as electric models blur the traditional distinction between mass-market and larger cars. With Category A premiums at a record and above Category B, reviewing the system could help make allocation clearer and more responsive to changing demand.
The case against
Keeping the categories separate could preserve distinct access for smaller, more affordable cars, rather than making them compete directly with larger or more powerful vehicles. A record premium in one bidding exercise, amid strong electric-vehicle demand and a recent car expo, may not by itself show that the existing structure has failed; merging categories could also shift costs and make outcomes less predictable for buyers.
Explained simply
A Certificate of Entitlement, or COE, is required to register a vehicle in Singapore and gives its holder the right to use it for a set period. The number available is limited, and people bid for them, so the premium is an additional cost on top of buying a vehicle.
There are two COE categories for cars: Category A generally covers smaller, less powerful cars, while Category B covers larger or more powerful ones. The Land Transport Authority sets the supply of COEs and runs the bidding exercises; changes to supply and demand can affect premiums and the cost of owning a car.
COE prices matter because they can make buying a car more expensive, including for electric vehicles. The government has also been considering whether to combine the two car categories, which could change how car COEs are allocated.