Up to 20,000 additional Certificates of Entitlement (COEs) will be progressively injected across all vehicle categories from February 2025. Why is the government making this move and will this bring COE premiums down?
Steven Chia and Crispina Robert speak to Walter Theseira from the Singapore University of Social Sciences and Arthur Wong, managing director of ACM Automobiles.
(From L-R) Crispina Robert, Steven Chia, Singapore University of Social Sciences' Assoc Prof Walter Theseira, and Arthur Wong, managing director of ACM Automobiles. (Photo: CNA/Junaini Johari)
Here's an excerpt from the conversation:
Walter Theseira:
If you look at what LTA's objective is in this, their objective is not to target a certain price level. Their objective is to try to stabilise the COE supply, to try to undo some of this boom-and-bust cycle we have, because that is not very good for the economy - to have this extreme swing in prices and COE supply.
It's because with all these swings in pricing, you induce a lot of behaviour from car buyers, businesses, and so on, to try to time the market, to try to second guess what's going to happen.
I don't think that makes a lot of sense. So the objective is to stabilise (the) supply. But if they wanted to do that, my opinion would be (that) it would be more sensible for them to target the earlier part of 2025, 2026 to inject most of the supply, because that is when stabilisation makes a big difference.
Steven Chia:
When you say stabilise, is there any indication of what kind of pricing would be considered stable, because, ironically, the $100,000 mark is something people have almost gotten used to, in a strange way. And one could say that's kind of stable in a crazy way.
Crispina Robert:
Arthur, what do you think? Would it bring down prices?
Arthur Wong:
I hope it comes down. We're always guessing among our people in the trade, "Next week will go up?" "No, nobody buying cars so it should come down," and it goes up. Then, there was this period (where), all of a sudden, it dropped down to $85,000 ...
Steven:
There’s no way to really predict it. What would be considered in this day and age now, a fair price where people will say, "Okay, yeah, that makes sense."
Arthur:
We had a good run during the 2018 and 2019 period, all the way up to the 2020s ... $30,000. Those were the best days.
A new episode of Deep Dive drops every Friday. Follow the podcast on Apple or Spotify for the latest updates.
Have a great topic for us? Drop the team an email at cnapodcasts [at] mediacorp.com.sg
Source: CNA/ty
Stay updated with notifications for breaking news and our best stories
Download here
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app
Join here
Continue reading...
Steven Chia and Crispina Robert speak to Walter Theseira from the Singapore University of Social Sciences and Arthur Wong, managing director of ACM Automobiles.
(From L-R) Crispina Robert, Steven Chia, Singapore University of Social Sciences' Assoc Prof Walter Theseira, and Arthur Wong, managing director of ACM Automobiles. (Photo: CNA/Junaini Johari)
Here's an excerpt from the conversation:
Walter Theseira:
If you look at what LTA's objective is in this, their objective is not to target a certain price level. Their objective is to try to stabilise the COE supply, to try to undo some of this boom-and-bust cycle we have, because that is not very good for the economy - to have this extreme swing in prices and COE supply.
It's because with all these swings in pricing, you induce a lot of behaviour from car buyers, businesses, and so on, to try to time the market, to try to second guess what's going to happen.
I don't think that makes a lot of sense. So the objective is to stabilise (the) supply. But if they wanted to do that, my opinion would be (that) it would be more sensible for them to target the earlier part of 2025, 2026 to inject most of the supply, because that is when stabilisation makes a big difference.
Steven Chia:
When you say stabilise, is there any indication of what kind of pricing would be considered stable, because, ironically, the $100,000 mark is something people have almost gotten used to, in a strange way. And one could say that's kind of stable in a crazy way.
Crispina Robert:
Arthur, what do you think? Would it bring down prices?
Arthur Wong:
I hope it comes down. We're always guessing among our people in the trade, "Next week will go up?" "No, nobody buying cars so it should come down," and it goes up. Then, there was this period (where), all of a sudden, it dropped down to $85,000 ...
Steven:
There’s no way to really predict it. What would be considered in this day and age now, a fair price where people will say, "Okay, yeah, that makes sense."
Arthur:
We had a good run during the 2018 and 2019 period, all the way up to the 2020s ... $30,000. Those were the best days.
A new episode of Deep Dive drops every Friday. Follow the podcast on Apple or Spotify for the latest updates.
Have a great topic for us? Drop the team an email at cnapodcasts [at] mediacorp.com.sg
Source: CNA/ty
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Download here
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app
Join here
Continue reading...