SG: COE supplies to increase

The general trend for the past 7 years is for the Singaporean Government to reduce the amount of COEs issued every month. However, the supply is expected, for the very first time, to increase in 2014. That said, the increase shouldn’t affect the price of each COE too much, for the increase is  unlikely to suppress overheated premiums fuelled by high demand. Estimates put a 25% increase to 2,240 COEs in the May-June period, which, according to experts, will slightly lower the cost of COE, but will not dramatically affect it. 18,000 cars were scrapped in 2013. It is expected that 30,000 cars will meet their fate in 2014, and the figure is set to rise to 100,000 a year from 2015 to 2017. This could further increase COE supply between next year and 2017. Pictures used for illustration purposes only.