COE Qualifying Price and Quota

[Steptronic]

I happened to read the letters / articles in Straits times from last Thursday through Sunday and I found out that some readers complain that low COE Qualifying Price for last few years leading to flooding of cars on the roads. Surprisingly some of our MCF friends also echo the same.

 

There is no relation between flooding and COE QP as the quota is always fixed for any bidding. If economy is good and demand is more, the COEs are bidded and purchased at a higher price. This happened in mid nighties too (even though the COE quota was much higher than now)

 

Am I missing any point on this?