Part 7/9:

The earliest anticipated correction in COE prices could materialize in late 2024 to early 2025, assuming supply constraints ease or demand moderates. However, significant changes would likely require strategic reforms to the COE system itself.

Potential Reforms and Long-Term Solutions

One proposed reform involves spreading COE issuance evenly across the entire 10-year cycle, rather than concentrating allocations periodically. Such an approach would increase the consistency of COE supply, potentially stabilizing prices and reducing volatility.

However, operational challenges exist in implementing such a scheme. Moreover, the current COE system functions as a blunt instrument primarily aimed at controlling congestion by regulating vehicle ownership—regardless of actual vehicle usage.