SINGAPORE - The Land Transport Authority (LTA) today announced three measures it will take to ease the rising prices of certificates of entitlement (COE).
This comes after Minister for Transport Lui Tuck Yew asked LTA to possibly delay plans of implementing the 0.5 per cent growth cap, from the current 1.5 per cent rate, initially scheduled to begin in August.
In a statement to the media, the LTA said that it will reduce vehicle growth rate to 1 per cent from August instead of 0.5 per cent as previously announced. The percentage will then be further reduced to 0.5 per cent from February 2013 to January 2015.
This move will make available about 390 more COEs per month from August 2012 to January 2013 which is equivalent to about 10 per cent of the current monthly quota.
Secondly, the claw-back of over supplied COEs, which totals 4,789, made in 2008 and 2009 will be further deferred to July 2013 - a delay of one year. Adjustments will resume from August 2013 to January 2013.
This change will make available 266 more COEs per month, or about 7 per cent of the current monthly quota.
Thirdly, LTA will reduce COEs in the Open Category (Cat E). Currently 25 per cent of COEs from each of the four other vehicle categories make up the supply in Cat E.
In an attempt to maintain a more stable supply of COEs in each category, this percentage will be reduced to 20 per cent from August 2012 and then to 15 per cent from February 2013.
This will redistribute more COEs from Open to the other categories.
The quota for the COE bidding period from August 2012 to January 2013 will be announced in July 2012.