No immediate revisions to COE system, ERP 2.0 rollout ongoing
Acting Transport Minister Jeffrey Siow confirmed that the Singapore government will not implement significant changes to the certificate of entitlement (COE) system in the near term. He emphasized that the current focus is on completing the installation of on-board units (OBUs) in all vehicles as part of the ERP 2.0 transition.
“The reality is there won’t be space for every Singaporean to own a car in Singapore,” Siow said during a media interview on June 11. He explained that the COE system remains a method to allocate a limited and valuable resource, vehicle ownership, within a land-scarce city-state.
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On the question of usage-based charging, Siow stated that this may be considered in a future phase of the ERP 2.0 rollout. The system was introduced to replace the aging ERP infrastructure, which had become unsustainable due to unavailable parts.
As of June 2025, over 500,000 vehicles in Singapore have been equipped with OBUs. The government aims to complete installation across the country’s vehicle fleet, totaling approximately one million, by 2026.
Private-hire cars and COE prices
Responding to concerns that private-hire vehicles may be inflating COE prices, Siow challenged that narrative. He pointed out that these services provide pay-per-use access to private transport, potentially reducing the demand for individual car ownership.
“If we didn’t have private-hire cars today, actually the reverse would be true, that a large number of these people will feel that they need to buy a car, and then… they will bid the price of the COE up,” Siow said.
He added that private-hire cars offer more efficient use of COEs. “If you had one COE left to allocate, is it better to allocate it to a private car owner, who then drives maybe two trips a day and leaves the car in the garage? Or is it better to share the car among a much larger group of Singaporeans who can have access to the use of a car when they need it? Surely it must be the latter, right?”
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However, Siow indicated that if driving behaviors shift significantly over time, the COE allocation model could be reviewed accordingly.
Driver hours and road safety for private-hire sector
Siow also addressed questions regarding work hours for private-hire drivers following the recent death of 49-year-old driver Gavin Neo, who reportedly worked up to 15 hours daily. Siow noted that the Land Transport Authority (LTA) does not currently regulate the hours private-hire drivers spend on the road.
He added that the unions have not requested regulations on driver hours, citing individual flexibility. Siow said that LTA would consider intervention if accident rates involving private-hire vehicles exceeded those involving private vehicles, which has not been the case.
The Workplace Safety and Health Council recommends limiting driver shifts to no more than 12 hours. Siow further commented on ride-hailing company Grab’s incentive structures, suggesting they may merit closer review.
“I have a lot of sympathy for (Mr Neo)… The union has reached out to (the family), and we want to see how we can help the family in that particular instance,” he said.
EV infrastructure, public transport priorities, and maintenance
Siow identified electric vehicles (EVs) as a “game changer” for urban planning. Because EVs are quiet and non-polluting, roads can be designed closer to or even through buildings. The government has announced that all new car registrations must be cleaner-energy models from 2030.
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“It is a matter of managing the transition,” Siow said. “It just takes time for people to switch. We don’t want to force them to suddenly have to give up their vehicle for a new one.”
On late-night public transport, Siow cited manpower limitations as the main constraint. “Between choosing to deploy a night bus versus choosing to deploy a new bus service, I have to weigh which is the more immediate priority,” he said.
For MRT services, nightly maintenance work limits the feasibility of extending service hours. However, the completion of the Circle Line loop between HarbourFront and Marina Bay may allow partial overnight maintenance while maintaining network connectivity. Siow stated that the current operational pressures are leaning more toward reducing service hours to accommodate maintenance needs rather than extending them.
