The Land Transport Authority (LTA) has raised the idea of merging Certificate of Entitlement (COE) Categories A and B as part of public consultations for Singapore's next Land Transport Master Plan. Currently, Category A covers cars with engine capacity up to 1,600cc, while Category B is for larger cars. Combining them would create a single category for all passenger cars, simplifying a system that has four categories in total.
The proposal aims to make the bidding process less complex and reduce speculative behaviour that sometimes occurs when premiums differ sharply between categories. LTA is seeking feedback from motor traders and the public before finalising the plan. Supporters note that a unified category could align better with the rise of electric vehicles, which do not fit neatly into engine-based classifications.
However, the change could also shift demand and price dynamics. If combined, the enlarged pool of COEs would see increased competition, potentially raising prices for smaller car buyers who currently benefit from a separate, often cheaper, category. Car distributors have expressed mixed reactions. Some welcome the simplicity, while others worry about reduced choice and affordability for entry-level buyers.
The consultation period ends next month. LTA has not committed to the merger, and it is one of several ideas being studied. The final master plan is expected later this year.