PSP’s COE credit system proposal well-intentioned but unlikely to be effective: Amy Khor
SINGAPORE: The proposal by the Progress Singapore Party ( PSP) to set up a certificate of entitlement ( COE ) credit system may be well-intentioned, but is “unlikely to be effective in practice”, said Senior Minister of State for Transport Amy Khor.  ,
She was responding to questions raised by Non-Constituency Member of Parliament Hazel Poa at a motion to adjourn on Tuesday ( Jan 7 ) by PSP on how to create a more equitable COE system for private vehicles.  ,
The proposed Department system may use “COE certificates” instead of money for buying, said Ms Poa.  ,
The government proposed that child Singapore residents and permanent residents receive these credits each month, and the number of credits each person will receive will depend on several factors, including their citizenship, their years, the number of children they have, and whether or not they had any disabilities, among other factors.  ,
Ms. Poa suggested that each child Singapore resident receive 100 credits and each adult PR receive 70. For each child who is a member and a PR, there are an additional 200 credits for each child under the age of 12 and an additional 140 certificates for each child under the age of 14.  ,
Older individuals above the retirement age could get an extra 100 funds, and those who have mobility difficulties, such as those who qualify for Class 1 or Class 2 car park names for the handicapped, could get an extra 200 credits.  ,
These examples are not exhaustive, but they serve as examples of how we can apply this system to consider needs and cultural contributions and lower the cost of ownership for those who have a greater need, she said.  ,
She added that the proposed funds would also be applicable. For example, families may share their COE credits up to bet for a vehicle.  ,
Credits could also be exchanged for higher requests so that those who want to own a car can purchase them.  ,
” Inevitably, those who are financially better off may still be able to get a COE, although it is at least partially ameliorated by distributing COE funds based on needs elements,” said Ms. Poa.  ,
Ms. Poa also suggested that a base fee become collected per COE to lessen the impact of the proposed new COE program on government revenues. Depending on the COE type, this could be a flat rate or a percent of the vehicle’s open market value.  ,
Ms. Poa noted that the state may also lose some money even with the foundation fee.  ,
In reply, Dr Khor noted that under the plan, those who want to own a car you buy COE certificates from those who do not.
The end result may be that those who were willing and able to pay for COEs would still be those, she said.  ,
Their proposal” could possibly drive the price of credits beneath, where the costs of the credits become impenetrable and unknowing consumers are fleeced,” said Dr. Khor.  ,
She added that a COE properly” also cost even more than today” and that a whole new trading and enforcement program may be required to “ultimately cost citizens even more” to prevent black markets for funds.