SINGAPORE — Certificate of Entitlement (COE) premiums rose for all categories except the Open category in the first open bidding exercise this month, with commercial vehicle premiums rising to its highest this year.

Commercial vehicle premiums closed at S$57,389, a 15 per cent jump from S$49,889 in the previous bidding exercise. For small cars (up to 1,600cc and 97kW), premiums closed at S$63,880, a 3 per cent increase from S$62,000 in the previous bidding exercise. For big cars (above 1,600cc and 97kW), premiums rose 0.3 per cent to S$72,180, from S$71,990.

Motorcycle premiums increased by 6.6 per cent to S$4,800 from S$4,504. Premiums in the Open category fell 3.7 per cent to S$72,003 from S$74,801.

Traders TODAY spoke to said commercial vehicle premiums rose sharply because merchants were expecting a sharp cut in the upcoming commercial COE quota figures — which the Land Transport Authority (LTA) will announce this month — for the bidding period of November to January.

Mr Ricky Tay, director of RTMT Motor, estimates that COE quota for commercial vehicles will be reduced by 42 to 43 per cent from November. “Many customers were using the Early Turnover Scheme over the past two months to register new commercial vehicles. This will result in a lower replacement quota and traders all anticipate that there is going to be big cut with the COE quota.”

The Early Turnover Scheme, which aims to reduce fine particulate matter emissions to meet Singapore’s 2020 air quality targets, incentivises commercial vehicle owners to replace their old pollutive diesel vehicles early.

Singapore Vehicle Traders Association’s honorary secretary Raymond Tang said commercial vehicle premiums could climb to around S$60,000 during the next bidding exercise, the last exercise before a new quota kicks in from November.

The LTA received 3,357 bids at this exercise. Of these, 1,880 were successful. XUE JIANYUE