{
  "id": 12833056,
  "title": "Why Cat A and B could merge under proposed changes to COE system",
  "url": "https://urgent.news/2026/10/08/why-cat-a-and-b-could-merge-under-proposed-changes-to-coe-system",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-08T09:30:00.000Z",
  "source": {
    "name": "Straits Times",
    "slug": "straits-times",
    "url": "https://www.straitstimes.com/singapore/transport/why-cat-a-and-b-could-merge-under-proposed-changes-to-coe-system"
  },
  "original_language": "en",
  "account": "The Certificate of Entitlement (COE) system in Singapore, established in 1990, regulates the vehicle population through a quota system. COEs expire after either five or ten years and are valid for the purchase of a car. COE prices are auctioned twice a month, with the price determined by supply and demand. Passenger cars are categorized into A and B groups based on engine capacity and power output. Category A cars have a cap of 1,600cc and 130bhp, while Category B allows larger or more powerful vehicles. The LTA (Land Transport Authority) is considering merging these two categories into a single pool for all passenger cars. If this proposal is implemented, it could result in a broader pool of COEs, potentially reducing price volatility. However, it would also introduce the challenge of mass-market cars competing directly with luxury vehicles. To address this, the LTA is proposing a tiered system with rebates or surcharges based on the median open market value of the car. This means that mass-market cars with lower values would receive a discount, while luxury vehicles would incur a surcharge. The specific OMV bands and resulting costs under this modified COE system are yet to be determined.",
  "summary": "In recent years, the prices of Cat A and Cat B COEs have grown close, blurring the line between mass-market and luxury cars.",
  "key_points": [
    "Singapore's COE system regulates vehicle population via quota.",
    "Proposed merger of COE categories A and B into single pool.",
    "Tiered system with rebates/surcharges based on median OMV."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Straits Times",
        "title": "Merging Cat A and B, rebates based on car value among proposed changes to COE system",
        "url": "https://urgent.news/2026/10/08/merging-cat-a-and-b-rebates-based-on-car-value-among-proposed-changes",
        "published": "2026-10-08T09:00:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}