The reality is that we cannot grow the car population in S'pore much further: Jeffrey Siow

Transport Minister Jeffrey Siow stated on November 3 that the proposed Certificate of Entitlement (COE) scheme, which includes rebates and surcharges on mass-market and luxury cars, has received support from the majority of respondents. Siow explained that the new "feebate" system aims to restore a permanent price distinction in COE premiums.

During Parliament discussions, MPs questioned the proposed changes, such as the affordability of mass-market cars and the impact on electric vehicle (EV) adoption. Siow emphasized that the new scheme would use rebates and surcharges, with a lower-value car receiving a rebate on its COE price while a higher-value car gets a surcharge.

Siow noted that the Land Transport Authority (LTA) concluded public consultation on COE categorisation on November 2 and is studying the submissions, but has not yet decided on the outcomes. He added that most people preferred a five-band feebate system to reduce cliff effects. The largest rebate and surcharge in both systems would be S$15,000, with a potential difference of up to S$30,000 depending on the structuring of the bands.

Siow mentioned that there is a growing gap between Category A and B COE premiums due to the increasing popularity of EVs. He said that LTA's proposal is to merge existing Category A and B COEs into a single category for cars. The government is studying a transport grant option, which will be discussed later. LTA aims to finish its review by the end of 2026 and reveal findings and recommendations in the first half of 2027.