Proposed COE Credit System for PSP: Analysis by Amy Khor
SINGAPORE: In a bid to revamp the current certificate of entitlement (COE) system for private vehicles, the Progress Singapore Party (PSP) has proposed a groundbreaking COE credit system. This proposal, although well-intentioned, has sparked heated debates among policymakers and experts, including Senior Minister of State for Transport Amy Khor.
Revolutionizing the COE System
Under the proposed COE credit system, instead of using cash for bidding, individuals would receive “COE credits” from the government on a monthly basis. These credits would be allocated based on various factors such as nationality, age, number of children, and disabilities. For instance, adult Singapore citizens could receive 100 credits each, while those with children aged 12 and under could get an additional 200 credits per child who is a citizen.
Ms. Poa also suggested that senior citizens and individuals with mobility impairments could receive additional credits to cater to their specific needs. The goal of this system is to make vehicle ownership more accessible to those with genuine needs while ensuring a fair distribution of COEs.
The Impact on Government Revenue
However, Dr. Khor raised concerns about the practicality and effectiveness of the proposed COE credit system. She pointed out that the system could potentially drive the prices of credits underground, leading to opaque pricing and potential exploitation of consumers. Drawing a parallel to the price gouging of Taylor Swift concert tickets, Dr. Khor warned that the cost of COEs could escalate even further, making them unattainable for many.
Moreover, Dr. Khor highlighted the implications of the proposed system on government revenue. While the redistribution of wealth from vehicle owners to non-car owners might seem appealing, she emphasized that the current COE system already plays a crucial role in funding government subsidies for public goods like transportation, healthcare, and education.
A Call for Fairness
Despite the noble intentions behind the COE credit system, Dr. Khor questioned the feasibility of dictating who should receive more credits based on subjective needs. She emphasized the importance of providing upfront support to specific groups, such as families with children, through transparent and direct means rather than through a convoluted credit system.
In essence, the proposed COE credit system presents a complex interplay of economic, social, and logistical challenges that must be carefully navigated to ensure a fair and equitable distribution of COEs without compromising government revenue or fueling black markets. As policymakers continue to deliberate on the future of Singapore’s COE system, striking a balance between accessibility, affordability, and sustainability remains a paramount concern.