The proposed COE system overhaul

The Land Transport Authority's proposed overhaul of the COE system, merging Categories A and B with new rebates and surcharge bands, remains unresolved, with premiums continuing to climb since the review was announced. In the first tender held after the announcement, Cat A COE premiums rose to $132,004 and Cat B to $131,901. Analysts have said the proposed changes are unlikely to lower overall premiums or address the structural drivers of high COE prices, and car dealers and motorists are still withholding purchase decisions pending clarity on the plan. Separately, observers have noted that recent upticks in car buyer interest are being driven more by shrinking EV purchase incentives than by the proposed COE changes.