COE prices up because economy is doing well: Transport Minister

COE prices are soaring because the economy is doing well and not because the Government is further slowing the growth in the vehicle population to 0.5 per cent, as that kicks in only in August, Transport Minister Lui Tuck Yew said on Sunday.

He was responding to a steady stream of complaints about certificate of entitlement (COE) prices - now at their highest in more than a decade - from residents during a walkabout in Cheng San.

Mr Lui said high COE prices are due to strong demand - with wages still on the rise, dealers introducing new car models and more people bidding now in expectation that premiums may rise further.

Come August, the annual allowable vehicle population growth rate goes down to 0.5 per cent, from 1.5 per cent today and 3 per cent before 2009.

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