The most recent Department results follow LTA’s earlier on Wednesday enforcing a three-year lock-in period for all previously registered or converted rented private-hire automobiles that are owned by companies and all other types of vehicles that have been transferred from individuals to businesses.
LTA had intended to release the new condition following this most recent COE bidding exercise. However, it moved forward because its seller, NCS, called for an “unintended release of information,” which made some market players aware of this new lock-in period prior to the anticipated announcement date.
LTA has chosen to move the execution of this new plan forward until Feb 19 to avoid the Technical bidding process, it said.
According to LTA, the new principle makes sure that businesses that buy these private-hire cars do but primarily for the purpose of leasing them to drivers who offer ride-hail services.
Additionally, it prevents the premature removal of these cars from the private-hire auto program, which will have an impact on the availability of cars for point-to-point services.
Transport Minister Chee Hong Tat stated in parliament in November last year that native personal buyers, as opposed to foreigners or car leasing firms, were likely to be the main reason for the recent increase in Department prices.