Proponents of merging COE Categories A and B argue that the current system is needlessly complex and prone to market distortions. A single category for all passenger cars would make bidding more transparent and easier for consumers to follow. It could also curb the practice of 'category hopping', where buyers switch between A and B based on price gaps, which often drives volatility.
Furthermore, a unified category is better suited for the growing share of electric vehicles, which do not have traditional engine capacities. Several industry observers note that the total COE supply would remain the same, so any initial price shock should stabilise over time. The government would also benefit from reduced administrative costs.
Supporters believe the merger is a logical evolution of a system that has been in place for over 30 years. They argue it would level the playing field, reducing the advantage of speculative bidders who exploit category differences. While affordability concerns are valid, they counter that the current system already penalises some buyers through uneven supply adjustments.