As 2023 draws to a close in just a few days, it marks the conclusion of yet another year—a chapter that is about to end.
In this article, let’s delve into the top three topics of this year and contemplate their trajectory in the upcoming brand new year, 2024.
Highest COE Price Recorded, Ever
If COE were a stock in the market, it would have been the best-performing one this year.
2023 saw the highest recorded COE price, closing at a staggering S$152,000 in October for the Open Category premium.
Following these record-breaking prices, the Land Transport Authority (LTA) announced the reallocation of an additional 1,614 Category A, B, and C COEs to the quota for the period from November 2023 to January 2024.
This was on top of the 1,895 reallocated COEs announced earlier on 13 October.
As the saying goes, “what goes up must come down,” and this held true for COE prices. With the increase in quota, prices fell sharply, with Category B COE dropping by S$40,000 in November’s first bidding.
While falling COE prices are welcomed, the sharp dip has also introduced uncertainty among both car buyers and sellers.
As the new year begins, what can we expect from COE prices?
Experts suggest that prices may hover within 5–10% of current levels, but only time will tell. All eyes are now on the first bidding exercise of the new year.
ERP 2.0 Finally Hits the Roads of Singapore
In October, the Land Transport Authority announced the rollout of ERP 2.0.
Installation of the new On-Board Unit (OBU) began for company-registered vehicles in November, with all other vehicles progressively fitted starting from new vehicles in the first quarter of 2024.
Whether ERP 2.0 will face delays similar to its earlier introduction remains uncertain as motorists await real-world implementation and functionality.
That said, ERP 2.0 holds strong potential to transform motorists’ experiences through enhanced capabilities and smarter traffic management.
However, distance-based charging is unlikely to be implemented immediately.
Read why distance-based charging may not be around the corner with ERP 2.0
More Electric Vehicle Adoption Incentives
2023 also saw a noticeable increase in electric vehicle (EV) adoption in Singapore, with more models entering the market and giving drivers greater choice.
The EV Early Adoption Incentive (EEAI) scheme has been extended until the end of 2025.
Owners registering new fully electric cars and taxis will continue to receive rebates of up to 45% off additional registration fees.
However, the maximum rebate will be reduced from S$20,000 to S$15,000 from January to December 2024.
With incentives still in place, EV adoption is expected to continue rising, especially as drivers navigate higher car ownership costs.
A Better 2024, Happy New Year!
As we reflect on 2023, we welcome 2024—a brand new and hopefully better year ahead.
The ROADS.sg team would like to wish all our readers a happy new year.
See you in 2024!
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