Singapore decides not to create a separate COE category for private-hire cars

The Government has decided that there will not be a separate COE category for business-owned private-hire cars.

Following over a year’s worth of studies and debates in Parliament, the Government has decided not to create a new certificate of entitlement (COE) category for business-owned private-hire cars. 

“We have studied this carefully and decided not to proceed with such a move,” said Senior Minister of State for Transport Amy Khor during the Committee of Supply debate on 5 March. 

Dr Khor explained that business-owned private-hire cars only make up a relatively small proportion of successful COE bids, with the bulk of the demand for COEs coming from individual buyers. 

She also continued by saying that creating a separate category for private-hire cars would require the reduction of existing COE categories to accommodate the quota needed for the new category. 

“If we move too much quota away, Cat A and B COE prices will spike because of inadequate remaining quota. Conversely, if we move too little, COE prices for private-hire cars will be high, with drivers and commuters facing higher rental and fares,” explained Dr Khor. 

For these reasons, Dr Khor concluded that “the allocation between private-hire cars and private cars is best left to the market.”

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