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Economy

COE premiums rise again as supply falls short

Passenger car COE premiums rose across all categories in the Aug 19 bidding, with industry watchers warning prices may stay elevated for months.

Source: The Business Times Singapore · August 19, 2026 at 11:51 AM · AI-assisted report

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COE premiums rise again as supply falls short
Photo: chensiyuan / CC BY-SA 4.0

SINGAPORE, 19 AUGUST 2026 —

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Passenger car COE premiums rose across all categories in the Aug 19 bidding, with industry watchers warning prices may stay elevated for months.

Market Impact

Kah Motor chief executive Nicholas Wong said supply will remain insufficient, keeping premiums high. “COE premiums are not going to drop in the coming months,” he told The Business Times.

The latest increase follows a sustained shortfall in quota supply. Data from the Land Transport Authority shows Category A (up to 1,600cc) premiums climbed to RM45,001, up RM3,000 from the prior round, while Category B (above 1,600cc) reached RM60,002, an increase of RM4,500. For the first eight months of 2024, average premiums have risen 18% from the same period last year.

Analysts say the trend points to further tightening unless more quotas are released. “Demand remains robust amid limited supply,” said an economist at a local brokerage who declined to be named. He added that unless the quota system is adjusted, premiums could stay at current levels or rise further in the coming quarters.

Related: Singapore

Reporting based on The Business Times Singapore. Figures and claims are subject to revision as the story develops. DomainFork publishes editorial context, not investment advice — see our editorial standards.