Finally, the long-awaited change that we are wanted to see on addressing the high CAT D COE price is realised.
LTA announced changes to the bidding process on Monday, 14 Mar 2022. Two changes were introduced. The bid deposit for CAT D COE is raised from $200 to $800, and the TCOE validity is reduced from 6 months to 3 months. These changes on the motorcycle COE bidding process would take effect from the second tender exercise in March 2022, i.e. 21 to 23 March 2022. The reason provided by LTA on the changes was "to encourage prudent bidding behaviour".
Many feedback surfaced online, commenting if the changes are suffice. Some of them felt that the changes should have been stronger where bid deposits should be increased higher and the TCOE validity be reduced further. Others have commented that it is a fair adjustment where it gives bidders 6 bids to decide if they want to utilise the TCOE.
The ExCo feels the changes are in the right direction and they could had been introduced earlier. Independent of the CAT D COE price level, the continued emphasis is for the COE Price to reflect the true market demand. As SMCTA, let's see how the new changes pan out in the coming months.