May 8, 2013
8 May 2013
In the new system, prospective car owners are required to purchase a Certificate of Entitlement (COE), which is a licence that lasts for 10 years. The government sets a quota on COEs for different vehicle categories a year in advance. COE allocation is done through open auction.
There are two COE open bidding exercises every month. The quota for a particular year depends on the net allowed increase of 3% and number of vehicles to be de-registered that year.
Singapore’s annual vehicle growth is less than 0.5% and the premium for owning a compact car is HK$300,000.
( Source: Singapore Manages Traffic Congestion through its Vehicle Quota System by Josephine V. Yam)S