LTA says it is watching motorcycle COE prices closely as affordability concerns grow
The Land Transport Authority (LTA) said on 22 September 2026 that it will keep a close watch on Category D certificate of entitlement (COE) prices for motorcycles and assess whether adjustments are needed. It was replying to a letter from a member of the public, published on 15 September, which asked whether motorcycle COE policy should give more weight to affordability.
In the reply, LTA’s Group Director of Policy and Planning, Priscilla Chan, said COE prices are set by supply and demand and have stayed high because demand remains strong. She pointed out that the Government has tried to raise supply through ‘cut-and-fill’ adjustments and by injecting additional certificates. From February 2025, up to about 20,000 extra COEs are being added over several years across vehicle categories, motorcycles included.
LTA acknowledged that motorcycles are an important mode of transport for some Singaporeans, including people who depend on them to earn a living, and that a higher share of motorcycle owners come from lower-income households than car owners. It said this is one reason motorcycles pay lower Additional Registration Fees and road tax than other vehicles, and why their Electronic Road Pricing charges are lower.
The reply came the day before the second September bidding exercise. According to LTA’s published results, the Category D premium closed at $12,201 in that round, down from $12,556 at the first September exercise. In the first October round, on 7 October, it fell further to $11,012.
Why it matters for businesses: many delivery riders and small firms rely on motorcycles, so Category D prices feed directly into last-mile delivery costs. LTA has not announced any change, but its statement that it will assess whether adjustments are necessary is worth watching. Businesses that run motorcycle fleets, or that pay riders who own their machines, should keep an eye on Category D results and on any further COE supply announcements, including the quota for November 2026 to January 2027 due this month.
Source: Land Transport Authority (media reply) — Read the original
