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After a two-month consultation with the public, academics and members of the motor industry, the Government has announced a tweak to the COE system.

09 Sep 2013 | Local News : Singapore

The 23-year old COE system will undergo a minor tweak in its classification criteria from next year. On top of engine capacity, engine output will also be considered for classification of cars - and is most likely to affect premium models with a small engine displacement but a high engine output.

According to The Straits Times, from February 2014, cars that fall under Category A, or cars with engine capacity up to 1,600cc, must also have an engine output lesser than 97kW - or about 130bhp.

This will mean cars like the Mercedes-Benz C-Class C180 Sports Edition with a displacement of 1,595cc but an output of 156bhp or the 1,395cc Volkswagen Golf Sport TSI DSG with an output of 140bhp will be classified under Category B from next February. 

The move ensures most mainstream Asian cars, like the Toyota Corolla or the Nissan Sylphy, need not have to compete with premium models in Category A - besides the Audi A1, 1.4-litre A3 Sportback and a few models from Citroen, MINI and Ford, among others.

Additionally Transport Minister, Lui Tuck Yew, has announced an additional tariff will not be imposed on owners who own multiple cars. According to the local paper, other suggestions included, using a vehicle's Open Market Value (OMV) and a car's carbon emissions to categorise car models, or a pay-as-you-bid system.

The Land Transport Authority (LTA) dismissed these ideas as it is not deemed effective to address social equity in car ownership. Chew Hock Yong, Chief Executive of LTA, also added the transport authority is still studying ways to stabilise prices without the need of COE.
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