COE

From February next year, a cap on engine power will be imposed on cars under Category A of the Certificate of Entitlement (COE) system to “better ensure some element of social equity in car ownership”, the Land Transport Authority (LTA) announced yesterday.

Under the new categorisation, any cars that fall under Cat A with an engine capacity of not more than 1,600c must also have an engine power that is not exceeding 97 kilowatts — or the equivalent of 130 horsepower. This change will only be effective for cars registered from the February 2014 open bidding exercise to give time for car buyers and the industry enough time to adjust to the change.

The change will mean that nearly 50% of today’s mass market cars would be reclassified as premium models, or fall under the COE Category B (for cars with 1,600 cc and above)