Certificate of Entitlement (COE)
The COE system was implemented in 1990 to regulate the number of vehicles on the road
A Certificate of Entitlement (COE) gives you the right to own and use a vehicle in Singapore.
Understanding COE:
- To register a vehicle, you must first bid for a COE. You can bid for a COE during the open bidding exercises conducted twice a month.
- Before the start of each bidding exercise, LTA will announce the vehicle quota of COEs available for each category.
- When you secure a COE from the bidding exercise, you can register a vehicle and use it for 10 years.
- At the end of the 10-year COE period, you can choose to deregister your vehicle or renew the COE by paying the Prevailing Quota Premium (PQP) for your vehicle category.
- If you choose to deregister your vehicle before its COE expires, you may be eligible for rebates from the unused portion of your COE.
To bid for a COE, you will need to follow the bidding procedure. You can submit your bid using:
- DBS/POSB ATM machines
- Internet banking (DBS, UOB or Maybank) – for corporate account holders only
- After submitting your bid, you can check your bid status or revise your bid.
- You will know if your bid is successful when the bidding results are announced
How COE Bidding System Works In Singapore
In Singapore, all vehicles must be registered with a Certificate of Entitlement (COE). Introduced in 1990, the COE bidding system helps regulate and prevent the overpopulation of vehicles in Singapore. Once you register your vehicle, the COE will be valid for 10 years from the registration date. COE bidding is conducted twice a month. It begins at 12 p.m. on the first and third Mondays of each month and closes on Wednesday at 4 p.m. during the week when the bidding is taking place.
In total, there are five different categories for COE. You have to secure the right COE through COE bidding based on your vehicle type to register a car in Singapore:
- Category A: Car, except fully electric car, with engine capacity up to 1,600cc and Maximum Power Output up to 97kW (130bhp); and fully electric car with Maximum Power Output up to 110kW (147bhp)
- Category B: Car, except fully electric car, with engine capacity above 1,600cc or Maximum Power Output above 97kW (130bhp); and fully electric car with Maximum Power Output above 110kW (147bhp)
- Category C: Goods vehicle and bus
- Category D: Motorcycle
- Category E: Open – all except motorcycles
COE quotas are announced every quarter by the LTA. LTA uses the following formula to determine the number of COEs available in each category:
- Provision for annual vehicle growth rate based on the vehicle population at the end of the year.
- With effect from 1 February 2023, the number of COEs available for bidding each quarter will be based on a rolling average of deregistrations over the last four quarters.
- Adjustment for changes in the taxi population, replacement of commercial vehicles under the Early Turnover Scheme, and expired COEs.
Certificate of Entitlement
The COE system was implemented in 1990 to regulate the number of vehicles on the road
The Certificate of Entitlement (COE) is the quota licence for owning a vehicle in Singapore. The licence is obtained from a successful winning bid in an open bid uniform price auction which grants the legal right of the holder to register, own and use a vehicle in Singapore for a period of 10 years. When demand is high, the cost of a COE can exceed the value of the car itself. The COE system was implemented in 1990 to regulate the number of vehicles on the road and control traffic congestion, especially in a land-constrained country such as Singapore.
On 1 May 1990, the previous transportation unit of Singapore's Public Works Department (PWD) instituted a quota limit to vehicles called the COE when rising affluence in the country catapulted land transport network usage and previous measure to curb vehicle ownership by simply increasing road taxes was ineffective in controlling vehicle population growth. The premise was that the country had limited land resources, ie limited supply of roads and car parks / parking lots, (with scarce land being managed to have a greater emphasis on providing an adequate supply of homes), along with demand for vehicle ownership spiralling out of control, would result in traffic conditions exceeding the criterion of a healthy road network that is sustainable by developments in land transport infrastructure resulting in gridlock. Along with a congestion tax called the Electronic Road Pricing (ERP), the COE system is one of many key pillars in Singapore's traffic management strategies that aims to provide a sustainable urban quality of life. In place of the COE and the ERP, the government has encouraged its citizens and tourists alike to take advantage of the extensive public transportation network to get around the country instead, such as the Mass Rapid Transit (MRT) or public buses, and to embrace a "car-lite society".
Before buying a new vehicle, potential vehicle owners in Singapore are required by the Land Transport Authority (LTA) to first place a monetary bid for a Certificate of Entitlement (COE). The number of available COEs is governed by a quota system called the Vehicle Quota System (VQS) and is announced by LTA in April of each year with a review in October for possible adjustments for the period of one year starting from May. Approximately one-twelfth of the yearly quota is auctioned off each month in a sealed-bid, uniform price auction system and successful bidders pay the lowest winning bid.
July 2024 COE Results 1st Bidding: The COE dragon maintained its stable glide in Categories A, C and E, while Categories B and D went down by a little
In the first COE bidding exercise of July 2024, Cat A closed at $91,001; Cat B closed at $100,901; Cat C closed at $70,001; Cat D closed at $8,900; while Cat E closed at $100,889.
- Cat A (car up to 1600cc & 130bhp, and EV with up to 110kW) received 1,429 bids for 967 COEs and its premium climbed by just $112. Category A COE closed at $91,001.
- Cat B (car above 1600cc or 130bhp, and EV with more than 110kW) received 896 bids for 671 COEs and its premium dipped by $1,433. Category B COE closed at $100,901.
- Cat C (goods vehicle and bus) received 325 bids for 214 COEs and its premium increased by just $101. Category C COE closed at $70,001.
- Cat D (motorcycle) received 571 bids for 517 COEs and its premium decreased by just $102. Category D COE closed at $8,900.
- Cat E (all vehicles except motorcycle) received 309 bids for 176 COEs and climbed by just $889. Category E COE closed at $100,889.
COE premiums may go higher for longer, driven by EV demand
Electronic Road Pricing (ERP)
The ERP was implemented by the Land Transport Authority (LTA) on 1 April 1998
Electronic Road Pricing (ERP) is a system used to manage road congestion in Singapore.
Understanding ERP:
- You pay a fee when driving through an ERP gantry during operational hours.
- ERP charges are reviewed regularly to keep traffic moving at an optimal speed.
- There are different ERP operating hours on the eve of major public holidays.
Paying your ERP charges:
- The In-vehicle Unit (IU) in your vehicle deducts the ERP charges based on your chosen mode of payment. - Stored-value card or Backend payment services
- To avoid ERP violations, sign up for backend payment services. When you sign up for a backend payment service, the service provider will notify you once the service is activated.
- If you drive through an ERP gantry without paying, you will receive a notice of ERP violation. You will then have to pay the ERP charge plus an administrative fee.
- See how foreign-registered vehicles pay ERP.
Electronic Road Pricing
The ERP was implemented by the Land Transport Authority (LTA) on 1 April 1998
The Electronic Road Pricing (ERP) system is an electronic toll collection scheme adopted in Singapore to manage traffic by way of road pricing, and as a usage-based taxation mechanism to complement the purchase-based Certificate of Entitlement system. There are a total of 93 ERP gantries located throughout the country, along expressways and roads leading towards the Central Area. As of February 2023, there were a total of 19 ERP gantries in operation, as compared to 77 in 2020 before the COVID-19 pandemic in Singapore.
The ERP was implemented by the Land Transport Authority (LTA) on April 1, 1998 to replace the preceding Singapore Area Licensing Scheme (ALS) that was first introduced on 11 August 1974 after successfully stress-testing the system with vehicles running at high speed. The system uses open road tolling; vehicles do not stop or slow down to pay tolls.
Singapore was the first city in the world to implement an electronic road toll collection system for purposes of congestion pricing. Its use has inspired other cities around the world in adopting a similar system, particularly London's Congestion Charge Zone (CCZ) and Stockholm's congestion tax. It has also been propose
Complete Guide To Electronic Road Pricing (ERP) Fees, Gantry Locations & Operating Timings For Cars
Introduced in April 1998 to curb and ease peak hour jams, Electronic Road Pricing (ERP) was an enhancement of its predecessor, the Area Licensing Scheme (ALS), which was launched in 1975 to target reducing traffic congestion in the Central Business District.
Today, ERP is used to manage road congestion by charging drivers passing through ERP gantries during operational hours. The aim – though not necessarily the result – is for drivers to use alternative routes, travel outside ERP hours or take alternative forms of transport to avoid ERP charges.
Here’s a guide to all the gantries in Singapore, their operational hours, and the exact charges:
- Complete List Of ERP Gantry Locations And Rates
- Ways To Pay Your ERP Charges
- Consequences For ERP Violations
related: Vehicle Owner’s Guide To ERP 2.0
The Motorist Guide to ERP rates
Here’s a guide to everything you need to know about Electronic Road Pricing (ERP) gantries, rates and operation hours in Singapore. The ERP network has long been the target of hatred and scorn by Singaporean drivers, with some giving the acronym an alternate meaning “Every Road Pay”.
With this guide, you can arm yourself with the knowledge to avoid having to pay a little bit extra on your daily commute. The Land Transport Authority regularly reviews these rates based on traffic conditions and these are the latest rates as of the last review in January 2024.
As usual, LTA are reducing the ERP rates at some gantries for the duration of the June school holidays (hooray!). The changes in pricing apply to these 13 gantries:
- AYE after Jurong Town Hall towards City (three gantries)
- AYE after North Buona Vista towards Tuas
- Southbound CTE before Braddell Road
- Soutbound CTE after Braddell Road and PIE slip road into southbound CTE (four gantries)
- KPE after Defu Flyover
- PIE (Adam Road and Mount Pleasant) (two gantries)
- Westbound PIE before Eunos Link
related:
Introducing ERP 2.0 OBU
The current gantry-based ERP system has been in operation for 25 years (since 1998) and will be replaced by a new Global Navigation Satellite System (GNSS)-based ERP 2.0 system. As part of the shift to the new ERP 2.0 system, all Singapore-registered vehicles will need to replace their In-Vehicle Unit (IU) with a new On-Board Unit (OBU). Once installed, the transition will be seamless, with no difference in how you are charged for ERP and parking today.
Motorcycles will be fitted with a single-piece design that includes a Processing Unit and a small touchscreen for riders to toggle through different functions. Cars and all other vehicles will be fitted with a three-piece design, comprising an Antenna, Processing Unit and an optional Touchscreen Display.
If you choose not to install the Touchscreen Display, you can download a compatible mobile application to view ERP and other traffic information. Currently available apps include:
- ERP 2.0: App Store or Google Play
- Breeze: App Store or Google Play
- Galactio: App Store or Google Play
- Motorist Super App: App Store or Google Play
Next-gen ERP on-board units to be installed from Nov; motorists can opt out of touchscreen display
The new on-board unit consists of a processing unit, an antenna and a touchscreen display mounted on the windscreen
On-board units for a satellite-based Electronic Road Pricing (ERP) system will be installed in vehicles in phases from Nov 1 this year, and the exercise is expected to be concluded by the end of 2025.
In all, nearly one million vehicles will be fitted with new on-board units (OBU), starting in November with about 20,000 fleet vehicles – those registered to a company or organisation with 20 or more vehicles. This group includes public buses, fleet motorcycles and taxis, said the Land Transport Authority (LTA) on Monday. The devices will be installed on new vehicles from the first quarter of 2024, while all other vehicles will have their existing in-vehicle units replaced in batches, based on the vehicle’s age.
In a nod to feedback from the public that the OBU is too bulky, the LTA said motorists can opt out of installing the touchscreen display and get key information via mobile apps on their smartphones instead. The new OBU has three pieces – a processing unit located on the side of the front passenger footwell, an antenna and a touchscreen display mounted on the windscreen. Motorcycles will have a single-piece unit mounted on the handlebar. Vehicle owners will be notified by LTA when it is their turn to install the OBU, with instructions on how to book an appointment.
All you need to know about ERP 2.0 OBU
The electronic road pricing (ERP) system as we know it will very soon be replaced by a new Global Navigation Satellite System (GNSS)-based ERP system. After a two-year delay, motorists in Singapore can finally expect the implementation of the new on-board unit (OBU) under the next generation ERP system.
The Land Transport Authority (LTA) will begin the installation of OBU in phases from November 2023, starting with fleet vehicles. To better ease you into the new system, here's all you need to know about the ERP 2.0's OBU installation:
- What's the new OBU? - The ERP 2.0 is supported by the Global Navigation Satellite System (GNSS) technology.
- Do I need to pay for the OBU? - The good news is that OBU will be provided free of charge to all eligible Singapore-registered vehicles during the installation period.
- When will OBU be installed? - From Nov. 1, 2023, fleet vehicles for motorcycles and all other vehicles will have the OBU installed progressively.
- Will there be a change to charging framework?
- The short answer — no.
- Will ERP gantries be removed? - ERP gantries will only be removed gradually after the installation period.
- How will this change affect parking? - For now, motorists can continue to use parking.sg to pay for parking digitally.
- How will your privacy be ensured with the new system? - If you are concerned about your privacy with the implementation of the new system, LTA has ensured motorists that strict safeguards for data privacy have been put in place.
- What's next? - The OBU exercise is expected to be completed by end-2025
Disappointment with LTA's ‘Bulky’ ERP 2.0 OBU
In a recent parliamentary session, concerns surfaced about the new ERP 2.0 OBU’s design. Despite its bulkiness, Transport Minister Chee Hong Tat did not confirm if it meets the AEC-Q100 heat tolerance standards. The oversight is significant, considering the S$556 million tender for the ERP 2.0 system and the flawless performance of the previous generation’s device for over two decades.
Transport Minister Chee Hong Tat responded to growing concerns over the new On-Board Unit (OBU) for the Electronic Road Pricing (ERP 2.0) system, defending the device’s implementation and design. His explanations, while intended to clarify, only deepened public scepticism about the Land Transport Authority’s (LTA) decision-making process. The minister highlighted the design’s adaptation to Singapore’s harsh temperatures, citing that car footwells—where part of the OBU is to be installed—experience significantly cooler temperatures than dashboards, which can reach up to 52°C. The separation of the OBU into three components was, according to Minister Chee, a necessary response to prevent overheating risks associated with a single-piece unit.
However, this decision comes at the cost of increased bulkiness and complexity, moving away from the more compact design of the previous generation’s IU system, which notably faced no such overheating issues. What’s striking here is the evasion of a critical question posed by Mr Louis Chua, Workesr’ Party MP for Sengkang GRC. Mr Chua asked whether the new OBU meets the Automotive Electronics Council’s AEC-Q100 standard, a benchmark for reliable operations under thermal stress in automotive environments.
ERP 2.0 OBU from 1 Nov 2023
The Land Transport Authority (LTA) will begin installation of the new on-board unit (OBU) under the ERP 2.0 system in phases from next month, starting with fleet vehicles.
The new Global Navigation Satellite System (GNSS)-based system will replace the existing ERP system. The current system has been in operation for 25 years (since 1998) and is reaching the end of its operational lifespan. With that, the current in-vehicle unit (IU) will be replaced with the new OBU, which comprises three components – a processing unit, an antenna, and a touchscreen display. For motorcycles, these three components are integrated into a single-piece OBU. The OBU will be provided free of charge to all eligible Singapore-registered vehicles during the installation period. See Annex A for more information on the OBU.
Installation to Commence in Phases - From 1 November 2023, fleet vehicles, for motorcycles and all other vehicles, will have the OBU installed progressively. Vehicle owners will receive a notification from LTA when it is their turn, with instructions on how they can schedule an installation appointment. All other vehicles will progressively have their OBU installed. From the first quarter of 2024, new vehicles will be fitted with the OBU. Remaining existing vehicles will be scheduled for installation in batches, based on the age of the vehicles. The OBU exercise is expected to be completed by end-2025. Installation is free if it is completed within the two-month period stated in the notification. More details about the installation for individual vehicles will be announced early next year.
