COE quotas have increased across all categories for the next six months

The Land Transport Authority (LTA) has announced an increase in COE quotas across all motor vehicle categories. This may be seen as a temporal reprieve for the ever-strong demand for COE, as higher supply will likely to induce a drop in prices. Premiums have been staying high despite new implementations such as curbs on motor loans.

For the period of August 2013 to January 2014, a monthly quota of 3,471 will be allocated - an increase of eight percent or 260 COEs from the past six-month period of February 2013 to July 2013. Only Category D, or the Motorcycle category, will be reduced from the current 1,012 quotas to 961 quotas monthly.

Category A (up to 1,600cc displacement) has increased from 667 to 728 quotas - a hike of nine percent. On ther other hand, quota for Category B (above 1,600cc displacement) enjoy the greatest hike of 23 percent - climbing from 605 to 746. Category E (Open Category) will be allocated 46 more COEs - close to a 10 percent hike from the previous 476 to 522 quotas.

With a total quota of 20,825, COE for the next six months consists of the 0.5 percent provision for vehicle growth based on the vehicle population - which amounts to 916,284 as of 31 December 2012. Moreover the replacement of COE's for de-registered cars between January and June this year, and adjustments for change in taxi population expired COEs and over-projections of vehicle de-registrations in 2008/2009 are also taken into consideration.

Bidding under this quota will start with the first bidding exercise in the month of August 2013. The next COE quota announcement will be for the period of February 2014 to July 2014 with the announcement to be made in January 2014.