12 Feb 2015

Government Indicates that Current COE Bidding System Continues to be Relevant

During a recent parliament session, the government addressed that the existing COE bidding system is still relevant in today’s context as it allows flexibility.

The government explained that it did consider public input to ban dealers from bidding COEs as premiums may be artificially driven higher than actual demand. However, there was also input that dealers were providing a convenient service for buyers during COE bidding and even if there was a ban, it could easily be circumvented.

It is of the government’s view that should owners be the ones bidding, they may have to spend more time and costs monitoring and adjusting their bids. COE premiums are also unlikely to fall as prevailing premiums are a reflection of what buyers are willing to pay for.

*Source : The Straits Times