The Land Transport Authority (LTA) has just announced an update where drivers can now choose where to install their on-board units (OBUs).

Given the variety of car models plying our streets, LTA has now flexed its guidelines to allow the installation of the processing unit in the driver’s footwell, depending on the car’s design.

Originally, LTA had earmarked the front passenger’s footwell as the go-to spot for these units. However, it seems some drivers found it a bit of a stretch to reach the units from there. Recognising the ergonomic hiccup, LTA is now offering more flexibility for drivers.

This decision springs from practical feedback received since the installation exercise began last year. It’s a response not just to the spatial constraints of different car models, but also to the subtler temperature dynamics within a vehicle.

Apparently, the footwell’s cooler climes compared to the dashboard area make it a more suitable host for the OBU’s antenna – separated from the processing unit to avoid overheating.

For those uninitiated, the processing unit houses the CEPAS card that drivers use to pay for ERP charges or parking fees. 

As of late, LTA has also introduced a new button on this display, allowing drivers to deactivate their CEPAS card for parking payments – handy for those with complimentary parking passes who’d rather not fuss at the gantry.

Moreover, LTA is enhancing the OBU with safety notifications for school zones, silver zones, and bus lane hours. They’re also working with the Traffic Police to include more alerts for speed and red-light cameras. All of these updates are delivered straight to the OBU via “over-the-air” technology – no need to revisit the workshop.

For those still mulling over where to install their OBU, the choice is yours, with a free NETS Motoring Card thrown into the deal to hopefully sweeten the transition.

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The Land Transport Authority (LTA) has recently announced that it will increase the Certificate of Entitlement (COE) quota for vehicular categories A and B over the next few quarters. This one-time adjustment aims to reduce supply volatility which was the root cause behind the massive price spikes.

This announcement was in response to the record-breaking COE prices, with prices in Category A crossing the S$100,000 threshold for the first time on Apr 19, 2023. Similarly, category B premiums rose to a record high of S$120,889 during the same bidding exercise.

Open category COEs, which can be used for any vehicle type but are mainly used for large cars, hit an all-time high of S$118,990.

Increase in quota

For Q2 of 2023 – between the months of May to July – the COE quota will increase from 9,575 to 10,431.

This will result in a 24 per cent increase for Category A, while Category B will see an increase of 15 per cent. This will be in effect for the remaining five bidding exercises for this quarter.

Additionally, LTA will also bring forward the guaranteed deregistrations of five-year non-extendable COEs which are due to expire. This will happen whenever supply is projected to be higher, and these will be distributed over the next few quarters. The total supply of such COEs is about 6,000. 

Don’t expect prices to fall drastically

Although COE premiums have fallen slightly in the latest bidding exercise, COE prices are likely to remain high for a while, due to limited supply and increasing demand.

Delivering a ministerial statement in parliament on Monday, Transport Minister S Iswaran said Singapore “must expect the long-term trajectory for COE prices to be upwards”.

“Even as LTA makes the one-time adjustment to the COE quota in categories A and B, I would like to emphasise two points. First, this will help to lessen, but it will not eliminate, volatility in supply. There will still be a degree of supply fluctuation due to historical factors and broader market conditions. Second, the long-term upward trend of COE prices due to rising incomes and zero vehicle population growth will not abate.”

LTA has also stated that the new measure does not alter the zero Vehicle Growth Rate on the overall car population. 

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