From February 2014, Category A cars, in addition to having engine capacity of not more than 1,600cc, must also have engine power not exceeding 97 kilowatts (130 hp).
Apparently nearly half of Category A COEs went to premium models in recent COE bidding execises. These "premium" models were lower end variants of brand name luxury vehicles, such as the Mercedes Benz C180 (engine power 115kW) or BMW118i (125kW). The move is supposed to appease those who can afford only the mass market models, which brands are normally whispered to avoid embarrassing the bottom feeders.
Minister Lui deigned to venture too far out to antagonise the super rich by levying a surcharge on those who own multiple cars. Especially those have fleets of exotic sports vehicles for showing off, not basic transportation to a day job. He also rejected calls for a Pay-As-You-Bid system and a ban on dealers bidding on COE, for reasons best known to himself - and dealers consulted by the minister.
Shifting qualifying models from Category A to Category B means no difference to the cost of car ownership, if the recent numbers of the 4 September COE bidding exercise is anything to go buy. That damn piece of paper is still another $80,000 tax going to the greedy government:
- Category A (cars up to 1,600cc): $77,304, up from $76,223 previously;
- Category B (cars above 1,600cc): $77,100, up from $76,607 previously;
- Open category: $80,000, up from $79,223 previously.
The COV (Cost Over Valuation) took umpteen cooling measures (anybody keeping count?) to be tamed, in the ever elusive chase of the affordable public housing flat. Let's hope this tweak to the COE outrage is first of many to come.
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To be able to think out of the box, the Minister in charge obviously need to start watching a porn movie in order to set his brains free from rotting.
ReplyDeleteMaybe from the PAP Govt's point of view, it will be a raid on the country's reserves if they were to rein in the runaway COE prices !
So why bother when their performance bonuses are all dependant on them ?
I really hope that the coe intakes did end up in the reserves and not someone pockets. We should be entitled to free medical given the amount of coe accumulated so far in the reserves.
Deleteb, TKK(free medical), it is revenue for the budget.Budget surplus goes to reserves.
DeleteNow that's what you call an anti-climax - even their spin doctors in the shitty times must be feeling really funny after all the fore-play.
ReplyDeleteApparently old man's pet dog kish claimed that the cabinet is now "left of centre"! When it comes to lining their own pockets while keeping the elites happy with their entitlements, right is right, left is also right. Taxes for the rich are low, money buys everything, its great to be rich here. By the way, the latest headlines flashed marked improvement in service standard of MRT and buses are now no longer "as crowded as before". So over to you, PTC, the givernment wants a hike, yesterday!
A fool and an idiot.
ReplyDeleteThere is no point in "consulting" people when there is no intention of adopting ideas. Such methods will come to nought if the people being consulted are not given sufficient information. In this instance, the information that LTA is very, very afraid of car dealers' clout.
Car dealers are de facto running the COE system.
This is definitely not going to help their 2016 campaign. Goodbye Lui..hope you get another job that pays millions.
This is one minister who doesn't deserve his hundred thousand, let alone million package. LTA should change their tagline to "Moving your World Upside Down".
DeleteNo minister can solve this plate full problems given their growth at all costs policy. Not even that old wise one in his prime. A bad down turn in economy will alleviate the situation, thats all.
DeleteIs that it?
ReplyDeleteYour opening line says it all.
Please return the million dollar salary lah.
Oh no, now my power bike with 200hp has to go for Cat B.
ReplyDeleteHahahaha.. COV is just another gimmick lah. Property prices can continue to climb even with COV falling. Don't get conned.
ReplyDeletehttp://www.youtube.com/watch?v=wZyXdbit_o8
ReplyDeleteI only know this is an example of the daily curse that Singaporeans have to put up with, of some Foreign Trash who has this certificate of entitlement that they own the public pole of our SMRT train. This kind of outrage is not the first and won't be the last to come.
This must be the first in the world where a useless of shitty paper is higher than the price of the car itself. Can this extraordinary piece of Shitty COE be inducted into Guinness World Records ?
ReplyDeleteAnd we are surprised because a PAP Minister cannot think of a way to reduce the PAP government's tax revenues from COEs?
ReplyDeletePuhLease.
You want lower COE prices?
Vote Opposition.
They are pushing the system to a breaking point. Whoever takeover the government will have a very hard time changing the system.We cannot build enough roads for the ever increasing no. of cars while squeezing on this little red dot of 700 sq.km. with additional millions every 7-8 years . We will be reaching a breaking point sooner than later. Time for the oppositions to be more assertive.
Deletesome of these asses willing to pay $100k for coe but cUnt afford to pay for parking
ReplyDeleteno wonder my idol kuan yew, the god of no mercy call natives "daft"
long live kuan yew ... too many waiting for you!!!
The COE System has been turned into a money making scheme. Period.
ReplyDeleteMoney making for someone only not the public. In other words, it is a con scheme.
DeleteWould it be simpler if the Gov just tell people:
ReplyDelete"Do not buy a car!" ?
Since 60% of voters believe them anyway?
But strangely, not a single "authority" dare to say that!
Hmmmn "have more if you can afford it.."??
The myth that a vehicle will satisfy all your needs and give you freedom.. is the biggest lie created.
I did not realise there are so many fools here.
Reminds me of the Marina Bay naming exercise. Back to square one and totally devoid of any creativity, ideas etc. It should be very easy to run the transport ministry. First world cabinet.
ReplyDeleteBy consistently and persistently rejecting the pay-as-you-bid alternative, it is clear to me that the primary aim of the COE bidding system is not to control car usage or ownership, but to maximize revenue. Period.
ReplyDeleteOn the contrary, pay as you bid will make more middle class outraged.Then very soon only millionaires can afford cars.
DeleteNot if the prevailing quota premium is based on the average of all bids. After the first few rounds, bidders will realize that it does not pay to bid too high. Example, assuming there are only 3 COEs for the month and 10 bidders as follow:
DeleteA: $100,000
B: $80,000
C: $60,000
D: $40,000
E: $20,000
F: $10,000
G: $10,000
H: $5,000
I: $3,000
J: $2,000
Average premium = $33,000 (this will be the prevailing quota premium for this round of bidding.)
Under the current system, the cut off for 3 COEs is $60,000 and everyone pays $60,000, and total revenue collected by the govt is $600,000.
Under the pay-as you bid system, bidder A will have to pay $100,000 for a COE which is worth $33,000 - that is he is immediately incurring a loss of $67,000. Likewise, bidder B will lose $43,000. In fact all the winning bids will lose money.
After 1 or 2 rounds of bidding, bidders will wise up to the fact that you pay what you bid and it does not make sense to bid high.
In the current system, knowing that bidders only have to pay the cut-off winning bid price, the tendency for the well-off and kiasu bidders is to bid high because they don't have to pay the the price they bid.
So, yes the millionaires may bid $1 million for a COE which is worth a fraction of that. I call this a progressive system.
Do not lambast Lui Tuck Yew. He is a world class minister, worthy of every dollar and cent the taxpayer pays for his million dollar salary.
ReplyDeleteNot watching porn means he is pure in heart and so that's why COE price is also pure in price.
Lui tuck yew's performance as transport minister can be said to be more obscene than porn itself...commuters and motorists have to put up with Lui's endless foreplay and no climax.
DeleteWhatever consultation process the ministry had, it was really an exercise of inertia, sloppiness and reluctance to change. A minor tweak like this doesn't require a minister to do it. We expect more, much more deeper changes.
ReplyDeleteWhat is COE compare to Medishield Life which no citizen can opt out?
ReplyDeleteThey set the rules, the laws and define them.If the National Pledge can be defined as National Aspiration, what cannot be done?
DeleteThey said they will listen, didn't say they had to agree. They didn;t even say the objective was to lower COE prices - they always insisted it was supply vs demand; no one is forced to buy a car, a BTO flat, or visit the hospital. When you understand old fart's "principles", you will not be surprised, ever, by the way every consultations turned out to be more pain, like Medishield Life - they are taking their revenge : you think you can vote PAP out? By 2016 all of you will be on your knees, begging us to stop listening to you, muahahahaha....
ReplyDeleteWhy are we paying them $1 million dollars salary plus $16,000 a month allowances....and they are not able to think of anything better.
ReplyDeleteCan I have the job..of course, am not related to them..so cannot have the job then...
Curse of the COE? What curse? It is a fantastic money making scheme. Mahathir has to pour in billions to produce sub-standard cars which sells for tens of thousands ringgit. Our COE (cost of paper and printing less than $1) sells for tens of thousands dollars. All these without having to invest in car factories. What curse?
ReplyDelete