Updated: 02/06/2013 04:32

No new COE category for first-time car buyers: Josephine Teo

Minister of State for Transport Josephine Teo says a Certificate of Entitlement (COE) system favouring certain groups is likely to induce behaviour to get around the policy and defeat its purpose.

She was responding to calls by MPs in Parliament, who asked for a review of the system.

This includes creating a different COE category for first-time car buyers with access to cheaper COEs.

Mrs Teo said it's difficult to determine why a second-time buyer is always less deserving than a first-time buyer.

She cited the needs of bigger families and growing businesses that may need more than one vehicle.

Mrs Teo, however, did not reject suggestions for COE categories to be redefined and not be based on engine capacity.