SEPARATE COE CATEGORY FOR PRIVATE-HIRE CARS?  ,
The decline in car rental companies ‘ bids over the past few years also demonstrates why the idea of a separate Department category for private-hire vehicles is” not a straightforward workout,” said Mr. Chee.  ,
” Desire for COE from car rental companies can differ significantly from year to year and from quarter to quarter. It is difficult to discern upfront the limit required to meet the needs of point-to-point vehicles and travellers”, he said.  ,
The offer in both categories may be decreased if Category A and B moved too much of the existing allotment for private-hire cars. This may lead to an increase in Department charges for these groups, said Mr Chee.  ,
” On the other hand, if we underestimated the limit to get moved to the independent group for private-hire cars, it may lead to inappropriate private-hire vehicle supply which may in turn cause an increase in private-hire car prices and lower accessibility for point-to-point commuters”, he said.  ,
” There are the difficult trade-offs and it is not a straightforward exercise, so we are still carefully assessing this option” . ,
” NOT EASY” TO CLASSIFY PRIVATE-HIRE Vehicles
In a follow-up question, MP Louis Chua ( WP-Sengkang ) noted that while recent COE prices have decreased compared to a year ago, car leasing companies have also decreased in bids from 2022.
He questioned,” Would n’t this actually suggest that the car leasing companies actually influence the quota premium”?
Mr Chee said that between 2022 to 2024, COE rates have gone away.
” But, this is one indication that the primary vehicle for the increase in COE rate is unlikely to be due to the private-hire car rental firms”, he said.  ,
” Now, having said that, I am certainly not saying that they do n’t contribute to the overall demand, they do. That is a reality.
What are the main factors influencing the rise in demand, I’m trying to say, but what’s the point?
He added that while a separate category for private-hire cars is being studied, having this category” does n’t mean that you have suddenly got a windfall of COE supply dropping from the sky”.  ,
He added that the fact that “quite a number of them” are also used as personal vehicles further complicates the categorization of private-hire vehicles under another type.
” But, it’s not so obvious split that these are just point-to-point vehicles or personal vehicles, it’s a bit of a hybrid … and because of that, it is not so easy to ascertain what is this entire amount that will then fit into this individual class, if we decide to have a distinct category, “he said.  ,