Certificate of Entitlement

 In Singapore, the Certificate of Entitlement (COE) is a quota license that vehicle owners must bid for and obtain before they can register, own, and use a vehicle for a period of 10 years. The COE system aims to control the number of vehicles on the road by regulating vehicle growth through a limited number of COEs available for bidding each month. 

 The bidding process occurs in regular bidding exercises where prospective vehicle owners submit bid prices for the COE of their desired category. The COE prices are determined by the demand and supply of COEs in each category. The highest bidders will be successful in obtaining a COE, and they can use it to register a vehicle within the specified period. 

Once a vehicle is registered with a COE, the owner is allowed to use and operate the vehicle on the roads for the duration of the COE validity, which is typically 10 years. After the 10-year period, vehicle owners have the option to renew the COE for an additional 5 or 10 years by paying the prevailing COE renewal fee. 

 The COE system in Singapore is a significant component of the country's efforts to manage traffic congestion and control the growth of the vehicle population. It serves as a mechanism to ensure that the number of vehicles on the road is kept in check while providing a fair and transparent process for individuals to own and use vehicles in the city-state.