Business & Finance

Category A COE Premium Reaches Record $139,001, Category B Also Up

By Aqil Hamzah

On November 4, the Certificate of Entitlement (COE) premium for Category A vehicles reached an all‑time high of $139,001, surpassing the previous record of $133,009 set on September 9. Category A COEs, which cover smaller, less powerful cars and electric vehicles (EVs), rose 5.3% from the earlier price of $132,004. This is the first time the Category A price has exceeded that of Category E. Category B COE premiums, used for larger, more powerful cars and EVs, increased modestly from $131,901 to $132,334, a 0.3% rise. The only other category that saw a price increase was Category E (the open category), which went up 0.2% from $135,790 to $135,998. Open‑category certificates are transferable and can be used to register any vehicle type except motorcycles; traders often acquire them for the flexibility to register cars without waiting for the next tender. The price of a commercial vehicle certificate fell 0.2% from $92,200 to $92,000. Motorcycle COEs closed at $10,689, down 0.8% from the previous exercise’s $10,778. After the tender closed, a Land Transport Authority (LTA) spokesperson said COE prices remain high, likely due to strong demand for mass‑market EVs that qualify under Category A and the Car Expo held on October 24‑25. “We urge buyers and dealers to be prudent in bidding for COEs,” the spokesperson added. The results come after the LTA closed its public consultation on COE categorisation on November 2. The consultation sought feedback on a proposed review of the COE system, expected to be completed by the first half of 2027. Proposed changes include merging the two car categories and introducing a fee and rebate system that would charge higher premiums for higher‑value cars. Chong Kah Wei, managing director of BMW Eurokars, said dealers had anticipated a Category A price rise, but the record high surprised him. He cited the Car Expo as a likely driver, noting 2,018 bids were placed for 1,189 Category A COEs available. With the review looming, he suggested buyers were rushing into the market ahead of potential changes. “I don’t think prices are going to come down significantly, but we might see people shifting from Category A to Category B in the next exercise, considering the difference in prices,” he added. Raymond Ng, managing director of Eurokars EV, which distributes MG and IM Motors, said buyers were also influenced by the upcoming rollback of EV incentives starting in January 2027. EV buyers currently qualify for a combined rebate of up to $30,000, which will drop to $20,000 next year. Ng said: “After today, there’s only going to be three COE bidding exercises left. You’ve got dealers dangling these EV rebates, as well as LTA dangling COE recategorisation. All this is just driving people to buy now because there’s more certainty, and they also know they can save $10,000 if they opt for an EV.”