Steering clear of current roller-coaster COE cycle
By Christopher Tan, Senior Correspondent
The certificate of entitlement (COE) system is here to stay, but there may be room to tweak it further.
One change being considered is a flatter supply pattern over the long term, instead of the current roller-coaster cycle seen since the quota system started in 1990.
Transport Minister Lui Tuck Yew hinted at one way of doing this: tempering the huge supply of COEs that is due between 2014 and 2018 so as to mitigate the next cyclical dry spell.
WHY THE CHANGE
Because all things being equal, come 2021, 2022 and so on, I will again face a situation like today. - Mr Lui, referring to the current supply crunch which has seen COE premiums exceeding $90,000 for bigger cars. One change being considered is a flatter supply pattern over the long term
The bonanza is expected to be fuelled by the record number of cars registered between 2004 and 2008. Such vehicles will reach their 10th year and be scrapped by 2014-18; and COE supply is tied to the number of cars scrapped
By Christopher Tan, Senior Correspondent
The certificate of entitlement (COE) system is here to stay, but there may be room to tweak it further.
One change being considered is a flatter supply pattern over the long term, instead of the current roller-coaster cycle seen since the quota system started in 1990.
Transport Minister Lui Tuck Yew hinted at one way of doing this: tempering the huge supply of COEs that is due between 2014 and 2018 so as to mitigate the next cyclical dry spell.
WHY THE CHANGE
Because all things being equal, come 2021, 2022 and so on, I will again face a situation like today. - Mr Lui, referring to the current supply crunch which has seen COE premiums exceeding $90,000 for bigger cars. One change being considered is a flatter supply pattern over the long term
The bonanza is expected to be fuelled by the record number of cars registered between 2004 and 2008. Such vehicles will reach their 10th year and be scrapped by 2014-18; and COE supply is tied to the number of cars scrapped
