Record-high COE premium for motorcycles in latest tender
Riders will now have to pay $8,081 for a Certificate of Entitlement (COE) before they can buy a motorbike.
The record-high premium - 8 per cent higher than the previous rate ($7,483) - emerged in the latest tender yesterday.
The COE premium for cars up to 1,600cc and 130bhp rose by 1.9 per cent to end at $51,765. The COE premium for cars above 1,600cc or 130bhp inched up by 1.3 per cent to close at $54,000.
The premium for an Open category COE, which can be used for any vehicle type, finished 2.8 per cent higher at $54,501. All three new prices are the highest in four months.
Commercial vehicle COE bucked the trend by closing 4 per cent lower at $47,036.
Singapore Motorcycle Trade Association honorary general secretary Norman Lee said the record-high COE for two-wheelers was fuelled partly by buyers who are downgrading to smaller models after heftier taxes were imposed on bigger motorcycles last month.
By moving from say, a 1,200cc model to an 800cc model, Mr Lee said "they easily save $10,000 right away".
With the saving, they are bidding more aggressively.
Parliamentarians have voiced concerns about the skyrocketing motorbike COE and its impact on low-income families.
Mr Sitoh Yih Pin, chairman of the Government Parliamentary Committee for Transport, said the higher taxes were "targeted at reducing demand for larger-capacity motorcycles".
This way, "it was hoped that COE prices will be reduced in order to aid buyers of smaller motorcycles, who use their bikes for essential transport or work".