CNA: The Road Ahead For COEs

[Vulcann]

ALl these members of the public, analysts and MPs are talking nonsense.

 

Didn't they hear what LTY said recently?

 

The rising COE prices is actually due to the booming economy, he said IIRC.

 

We should really be appreciative of that yes?

 

 

From CNA:

 

http://www.channelnewsasia.com/stories/sin...1204394/1/.html

 

The road ahead for COEs

By Sumita Sreedharan, TODAY | Posted: 30 May 2012 0534 hrs

 

SINGAPORE: With the Land Transport Authority (LTA) due to complete a review by the end of the month - on the feasibility of increasing the supply of Certificates of Entitlement (COEs) - analysts TODAY spoke to called on the authorities to re-examine the system to address its volatility and to ensure social equity, with one even urging an overhaul.

 

Most experts and observers felt that by and large, the system has worked. However, tweaks are in order, they said.

 

Suggestions include temporarily allowing motorists to sell their COE back to LTA at the market price, allocating a certain number of COEs to different income brackets, having a fixed quota of COEs every year and having an additional category for luxury cars.

 

As COE premiums hit record levels in recent months, members of public have questioned the 22-year-old system.

 

In a letter published on May 18, TODAY reader Chua Yao Kun argued that the COE system "has proven to be a blunt tool". Apart from contributing to inflation, he argued that the COE system has resulted in vehicle ownership being increasingly concentrated in the hands of the rich, rather than being allocated to activities that promote economic value. The letter has since garnered 1,700 'likes'.

 

National University of Singapore transport researcher Lee Der Horng felt the COE system needs an overhaul. "The affordability (of a car) is not equal to the true desire or need to have a vehicle," he said.

 

One way to address the issue of social equity is to allocate a certain number of COE to different income brackets, said UniSIM School of Business urban transport management expert Park Byung Joon. Nevertheless, such a method is "easier said than done", Dr Park noted.

 

He added: "Who will evaluate the level of needs of each family and how? We may end up with having a bureaucratic monster, not necessarily better than COE system."

 

Pasir Ris-Punggol Group Representation Constituency MP Gan Thiam Poh, who is on the Government Parliamentary Committe for transport, concurred: "It will be difficult to assess whose needs are more pressing and it will be difficult to satisfy everybody."

 

Assoc Prof Lee suggested a balloting system. However, he noted that doing so could make the situation worse if it encourages the "entire population" to try their luck. "But then again, such things can be prevented much in the way the HDB has the rule that you can only sell your flat only after five years. If implemented for cars as well, it would ensure car owners know their responsibility and will have to take care of the car for the next five years," he added.

 

To address the volatility, Assoc Prof Lee suggested a more stable COE supply. Having a new category for luxury cars could also ensure that those who can afford it can pay more, he added.

 

HAS COE SYSTEM WORKED?

 

Overall, Dr Park believes the system has achieved its objective. "Without the COE system, the Singapore roads would become even more congested," said Dr Park. He pointed out that the current situation is due to the oversupply of COE between 2004 and 2008 - during that period, Singaporeans enjoyed relatively low COEs, he noted.

 

"The COE price is determined by the market force of supply and demand.. When supply decreases in such a huge number, it is not surprising that COE price drastically increased," he said.

 

Mountbatten MP Lim Biow Chuan, who is also on the GPC for transport, said the COE system has "worked to a certain extent".

 

"The question now is how it can be tweaked as people are feeling the pinch and there have been various requests and proposals," said Mr Lim.

 

Apart from the COE system, some MPs were concerned at the ease with which prospective buyers are able to finance their cars. These days, some banks are even offering on-the-spot approval for car loans.

 

Mr Lim suggested "cutting financing so that you do not allow people who cannot afford cars to leverage payments they may not be able to finance".

 

Ang Mo Kio GRC MP Ang Hin Kee cautioned against implementing "stop gap measures" which could throw the Republic's long term plans "into disarray". The entire transport system should be looked at in its totality before any tweaks to the COE system are made, he stressed. - TODAY

[Vhtfhwlego]

Simple: if one need a car, one would use the car.

Anyone travel less than 20k per yr don't need a car.

I travel 30k now & expected to hit 40k when i start my new job next month.

[Vhtfhwlego]

And I don't create congestion even when that I travel 2/3 more than others because, I drive 2/3 faster than most others.

[RadX]

Simple: if one need a car, one would use the car.

Anyone travel less than 20k per yr don't need a car.

I travel 30k now & expected to hit 40k when i start my new job next month.

 

my last car oni had 11k mileage a yr.......but i keep my car.,.....COS I CAN AFFORD WOT

 

but u are right. I am better off cabbing it

[Blackyv]

Simple: if one need a car, one would use the car.

Anyone travel less than 20k per yr don't need a car.

I travel 30k now & expected to hit 40k when i start my new job next month.

 

My weekday clock around 100km/day and weekend maybe 20-30km, think im qualify yah...

[Blackyv]

my last car oni had 11k mileage a yr.......but i keep my car.,.....COS I CAN AFFORD WOT

 

but u are right. I am better off cabbing it

 

You have few car mah..

[Friendstar]

Radx bro. U still have ur cayman?

[RadX]

Radx bro. U still have ur cayman?

 

nope....sold off last yr

[13177]

Simple: if one need a car, one would use the car.

Anyone travel less than 20k per yr don't need a car.

I travel 30k now & expected to hit 40k when i start my new job next month.

Many think that you dont need a car in sillypore at all, but still so many people buy a car?!

[Rezorn86]

Simple: if one need a car, one would use the car.

Anyone travel less than 20k per yr don't need a car.

I travel 30k now & expected to hit 40k when i start my new job next month.

 

if expected to hit 40k n abv in a yr, suggest u can get a hybrid car... [laugh]

[Rezorn86]

My weekday clock around 100km/day and weekend maybe 20-30km, think im qualify yah...

 

get a hybird [laugh]

[Joseph22]

if expected to hit 40k n abv in a yr, suggest u can get a hybrid car... [laugh]

he need to travel 2/3 faster meaning on express way most travel at 100 he travel at 160. Hybrid cannot achieve that in a comfortable manner

[Mustank]

And I don't create congestion even when that I travel 2/3 more than others because, I drive 2/3 faster than most others.

 

threy should have 2 gantries for all E-ways. One for entrance and one for exit to calculate total amount of time spent in e-way.

 

The shorter the amount of time you spend on the e-way, the lesser the amount you pay!!!

 

if you slow slow like tortise, be prepared to pay!!!!

 

if you car breakdown or is involved in accident, then be prepared to !!!!!

[Mustank]

he need to travel 2/3 faster meaning on express way most travel at 100 he travel at 160. Hybrid cannot achieve that in a comfortable manner

 

 

High Mileage? Need extreme torque? Like to have economy? HAHAHA You know what I am coming at!!!!!

 

DIESEL!!!!

 

[Kb27]

Car over population (high COE) is caused by the booming number of FT.

[Dice]

the acid test comes when 2014 comes coz by then the 2004-2008 oversupplies will hit the 10 yr mark and car owners decision time... if lesser cars than expected are deregistered then we would expect the problem to grow

[Elmo]

If they really implement the 'minimum ownership period' suggestion, then those who bought lemon car will be stuck with it. 2nd hand car dealership only sell older cars.

Like that I can only buy Toyota liao

More reliable?

[Gee]

On the tweak..

Another one or two new categories.

Minimum ownership period applicable for new cars.

70% Loan system reapplied to all car purchase.