Singapore public backs merged COE system with feebate scheme

Public consultation on Singapore's proposed Certificate of Entitlement (COE) merger has revealed strong backing for a feebate-based approach, according to findings released by the Ministry of Transport. The feebate system would combine vehicle taxes and rebates to incentivize the purchase of lower-emission vehicles while discouraging higher-polluting models.

Among respondents, a clear majority endorsed the feebate concept as a replacement or complement to the existing COE framework. When asked about implementation details, most participants favored a five-band pricing structure, which would segment vehicles into five categories based on emission levels and create corresponding financial incentives or disincentives.

Transport Minister Jeffrey Siow revealed that the government is simultaneously studying a separate transport grant scheme aimed at assisting large families. The grant would help offset mobility costs for households with multiple members, addressing potential equity concerns arising from the proposed COE changes.

The findings reflect ongoing efforts to reshape Singapore's vehicle management system to balance objectives including emissions reduction, traffic congestion management, and affordability. Further policy refinements are expected as the government weighs public feedback against operational and financial considerations.