Impact of Car Leasing on COE Prices

Mr Zaqy Mohamad asked the Minister for Transport whether the Ministry has studied the impact of the growth of the car leasing market on COE pricing as car leasing is used as a means by distributors and consumers to avoid recently implemented car loan restrictions.

Mr Lui Tuck Yew: The Government has been monitoring developments in the car leasing market. Private hire cars, which are used either for short-term rental or long-term leasing, make up 6.9% of all new car registrations in the seven-month period since the implementation of car loan restrictions in end-February 2013. This figure was 4.7% for the same period last year and 5.6% for 2011. It is unlikely that this moderate growth of the car rental and leasing market has had a significant impact on COE prices.