LTA will add up to 20,000 COEs across vehicle categories over the next few years, starting in February 2025.

SINGAPORE – Up to 20,000 additional certificates of entitlement (COE) will be introduced across five vehicle categories over the next few years, starting in February 2025.

Announcing the move on October 29, the Land Transport Authority (LTA) said it could increase the number of vehicles here by about 2 percent from current levels as travel patterns have changed, with total vehicle miles traveled falling by about 6 percent. cents from 2019 to 2023.

The new satellite-based Electronic Road Pricing (ERP), or ERP 2.0, will also enable authorities to better manage traffic congestion and vehicle usage, LTA added.

The introduction of COE, which gives the right to own a vehicle, will increase the supply of COE, although it is currently unclear how this move will affect COE premiums.

The Straits Times asked the LTA how it intends to distribute the additional COE across vehicle categories and how many years the infusion will be spread over.

COE prices fell slightly across all categories in the latest tender on Oct. 23, although premiums for both vehicle categories remained above $100,000. As of September 2024, there were 1,003,126 vehicles on Singapore’s roads.

LTA said it will consider further introducing fleet COE in the future when more data and tools become available as part of ERP 2.0, including the possible introduction of distance-based charging.

The ERP fee will be adjusted as necessary based on traffic conditions, LTA added.

The authority noted that the addition of COEs from February 2025 is similar to the approach taken when the government added 10,500 COEs between 1997 and 2003 over and above the permissible vehicle growth rate after the implementation of the ERP system.

Singapore’s vehicle growth rate has been set at zero since 2018, with the exception of the commercial vehicle fleet, which can grow by 0.25 per cent per annum. The vehicle growth rate is reviewed every three years, with the latest review occurring in 2021.

On October 29, the LTA said it would keep the growth rate of cars and motorcycles at zero, while the growth rate of commercial vehicles will remain at 0.25 percent per annum from February 1, 2025 to January 31, 2028.

The government’s long-term vision remains focused on a “lite car” approach, with walking, cycling and public transport predominant modes of travel, the LTA said.

It notes that the rail network has expanded by 18 percent from 228 km in 2019 to about 270 km today, with more MRT lines and extensions planned to open over the next few years.

Regarding ERP 2.0, LTA said the system’s satellite technology will enable it to introduce new “virtual portals” for more flexible and responsive congestion management. This will happen after all cars here are equipped with the new On-Board Units (OBUs).