The Workers’ Party MP proposes reforms to alleviate the rising cost of transportation for families and low-income households.
SINGAPORE: Workers’ Party MP Jamus Lim (Sengkang GRC) has emphasized that the escalating prices of the Certificate of Entitlement (COE)—a requirement for vehicle ownership in Singapore—affect not only the wealthy but also regular families and individuals across all income levels.
In a Facebook post on Wednesday (Nov 22), Assoc Prof Lim addressed the issue, which was part of a broader motion on the cost of living crisis debated in Parliament earlier this month.
“Some may wonder if COE prices are just the concern of elites. I don’t think so,” he stated. “Two in five households own a car. Many of these are just regular families, many with young children, for which wheels help get kids to classes, pull off grocery runs, and make work appointments. Others are those with an elderly or dependent with medical needs, for which a reliable ride becomes almost a necessity.”
Assoc Prof Lim also pointed out that high COE prices influence the cost of other transport options such as taxis, rideshares, and even motorcycles—key alternatives for many lower-income households.
COE Prices and the Cost of Living
COE prices recently made global headlines after hitting record highs, contributing significantly to rising transportation costs. While prices have moderated, they remain a concern for many Singaporeans.
Assoc Prof Lim reiterated that addressing the cost of transportation is essential, as it directly affects the financial well-being of young families, elderly caregivers, and lower-income individuals.
“A vote for the incumbent PAP is for more of the same, an acceptance that the system, which has delivered ever-rising costs of living, does not need reform,” he said.
Proposed Solutions
In Parliament, Assoc Prof Lim proposed several measures to make COEs more affordable and equitable, including:
Segmenting the COE Market: Creating specialized categories for commercial vehicles and Electric Vehicles (EVs).
Private Hire Car Exclusions: Removing private hire cars from the regular COE bidding system.
Restricting Dealer Bidding: Prohibiting car dealers from bidding for COEs.
Second Car Purchases: Requiring subsequent car purchases to be made under the open category to curb speculative buying.
Motorcycle Support: Implementing targeted solutions to address COE costs for motorcycle owners, many of whom come from lower-income families.
Opposition’s Role in Reform
Assoc Prof Lim highlighted the importance of the opposition in advocating for reforms to systems that may no longer meet the needs of today’s Singaporeans.
“The system has delivered in the past, but more of the same no longer cuts it when the young worry about affording their first flat, or young families a modest car, or lower-income households relief from high water and electricity bills,” he said.
The Workers’ Party’s proposals aim to provide relief for Singaporeans struggling with high transportation costs while promoting fairness and sustainability in the COE system.
