Reigning In High Motorcycle COE Prices — Speech for Committee of Supply 2022 on Head W- Ministry of Transport

1. Sir, hon Members on both sides of the aisle have expressed concern about high motorcycle COE prices.

2. These prices impact persons from low-income background; especially those who use motorcycles as part of their work. For them, taking public transport is not a viable option.

3. Even as demand for these continue to be strong, the supply has been squeezed. Last year, the Government announced a zero-growth rate for cars and motorcycles until 31 January 2025. In these circumstances, motorcycle COE prices may rise further unless something is done.

4. I support a cap on vehicles — as the number on our roads draws near to 1 million. But I wonder if the total number can be allocated differently.

5. For example, I note from the categorization of vehicles for COE purposes, goods vehicles are in a separate category C. I further note that this category is allowed a growth rate of 0.25% of the vehicle population divided by 4 until 2025. I wonder if the Government is prepared to recognize a separate category of delivery motorcycles and apply a similar growth rate for this category.

6. This may go some way to mitigate the high COE prices for motorcycles used for work. This is a practical and fair way to harness the market to work for us.