LTA Announces Up to 20,000 Additional COEs from February 2025

The Land Transport Authority (LTA) of Singapore has revealed a significant increase in the supply of Certificates of Entitlement (COEs) for vehicles, injecting up to 20,000 additional COEs across five vehicle categories beginning in February 2025. This marks the first increase in COE supplies in over two decades.

Context of the Change

This decision comes after observing shifts in travel patterns post-pandemic, where total vehicle mileage decreased by approximately 6% between 2019 and 2023. With advances in traffic management technology—specifically through the new electronic road pricing (ERP 2.0) system—the LTA aims for a more responsive approach to traffic congestion.

Details of the COE Injection

• Up to 20,000 COEs will be issued over several years, starting from February 2025.
• As of September 2024, Singapore had 1,003,126 vehicles on the road.
• The vehicle growth rate for cars and motorcycles will remain at 0%, while commercial vehicles can grow by 0.25% annually.

What’s New with ERP 2.0?

ERP 2.0 promises to enhance traffic management with the introduction of virtual gantries, removing the need for physical infrastructure and allowing for distance-based charging in the future. This new technology will be installed in all vehicles by the end of 2026.

Long-Term Vision

The LTA continues to promote a “car-lite” society, encouraging the use of public transport, cycling, and walking. The rail network has expanded by 18% from 228km in 2019 to about 270km today, with plans for further enhancements to MRT services.

As COE prices fluctuate, it remains to be seen how this new policy will influence the vehicle registration landscape and COE premiums. For now, the focus is on adapting to changing travel dynamics while managing traffic more effectively.