Workers Party MP calls for categorizing COEs on motorcycles by engine displacement, among other changes
STRONG DEMAND FOR MOTORCYCLES
Responding to Mr Faisal, Senior Parliamentary Secretary for Transport Baey Yam Keng said high prices for motorcycle COEs in recent months indicated “strong demand”.
About 99% of temporary COEs – which must be used to register motorcycles within six months to avoid losing a S $ 200 deposit – have been used since COE auctions resumed in July of last year, Baey said, noting that the historical average has been around 91 percent.
He added that the decline in COE supply for the current three-month period, coupled with the strong demand, would likely have contributed to the increase in COE premiums.
But he said dividing the EOCs of motorcycles into subcategories would not work, due to their “relatively small” quota.
“For example, from August to October 2021, approximately 440 category D centers of excellence were available for each call for tenders. If we were to divide that further, there would be even smaller quotas for each sub-category. This will likely lead to greater volatility and potential increases in COE prices, ”he said.
Allocating COE quotas based on engine displacement would also pose challenges, he added.
“The percentage of registered Class 2B motorcycles fluctuates over the years and even from month to month. It would therefore be very difficult for us to arbitrarily choose an allocation base.
Introducing a voting system for small motorcycles would also require authorities to “arbitrarily” set a price, Baey said.
“If the price is too low, it will increase demand and crowd out those who really need the bike for a living and are willing to pay a little more for the value it brings,” he said.
Allowing motorcycle buyers to bid for their own COEs, Mr. Baey noted that while this is already possible at ATMs, many choose to go through dealers because they can get their motorcycles immediately using temporary secure COEs. by dealers.
Removing such an option should be carefully considered as it could have unintended consequences for buyers, he said.