Mooted COE changes will solve category issues, but higher premiums likely: observers 

[SINGAPORE] The proposed changes to the Certificate of Entitlement (COE) system will solve problems with the current categories and help differentiate mass-market and luxury cars, said industry observers, but they are also likely to push premiums up and boost the take-up of private-hire vehicles.

Walter Theseira, associate professor of economics at the Singapore University of Social Sciences, said: “Giving a rebate to mass-market cars for COEs and a surcharge to cars with a higher cost will achieve the objective of having a price difference in COEs between mass-market and luxury cars.”

But automotive consultant Say Kwee Neng said: “In terms of overall affordability or price level, merging the two categories may be the worst thing to do as it is almost guaranteed to bring premiums to a higher level.”