Singapore weighs merging car COE tiers and extending price-based rules to trucks and bikes

Singapore's Land Transport Authority is reviewing the Certificate of Entitlement system, planning to merge the existing A and B car categories so that vehicles are ranked by open market value and subject to rebates or surcharges of up to S$15,000. The shift moves away from engine capacity or horsepower as proxies, aligning COE pricing more closely with market forces. While the split between mainstream and luxury cars has existed since 1990, commercial vehicles and motorcycles have never been differentiated, even though price disparities within those groups mirror those of passenger cars.

Data show that heavier commercial vehicles now dominate registrations and that premium motorcycles can cost over S$70,000, yet all compete for the same COE slots. Critics argue that owners of essential business vans or delivery bikes lack any relief, and that current rebates, especially for electric heavy vehicles, have distorted bidding. The LTA suggests future usage-based fees, such as ERP 2.0, could offer a fairer alternative, but those measures remain years away.