SINGAPORE will not introduce a separate Certificate of Entitlement (COE) category for private-hire cars (PHCs), said Senior Minister of State for Transport Amy Khor on Wednesday (Mar 5).
“We have studied this carefully and decided not to proceed with such a move,” said Dr Khor in the Committee of Supply debate on her ministry’s budget.
The bulk of demand for Category A and B COEs – for passenger cars – are from local individuals and not PHCs or car-leasing companies, she said. In February 2025, for example, business-owned PHCs made up 6 per cent and 8 per cent of successful Category A and B bids, respectively.
Reiterating past explanations, she noted that demand for PHCs fluctuates from quarter to quarter, with fares and driver supply being “highly responsive” to commuter demand, which makes it hard to determine the required quota.
Any PHC quota would have to come from categories A and B. Taking too much would cause those COE prices to spike; taking too little would mean high COE prices for PHCs, and thus higher rentals for drivers and fares for commuters.
The allocation between PHCs and private cars is “best left to the market”, said Dr Khor.
Levelling the field
Separately, Singapore will introduce more regulations to support taxi fleets and level the playing field against chauffeured PHCs, though no timeline has yet been announced.
These measures are part of the second phase of the Republic’s point-to-point transport sector review, following earlier moves such as a three-year lock-in period for PHCs and revised operational rules.
The aim is to give taxi operators greater flexibility in fleet management and operating costs and, together with moves in the PHC sector, to help further level the playing field between taxis and PHCs, said Dr Khor.
A previous 2 per cent cap on taxi fleets’ annual growth, suspended since 2021, will not be reimposed yet.
Currently, taxis cannot be converted or resold as passenger cars. Upcoming changes will make this possible.
Subject to Land Transport Authority (LTA) approval, taxi operators will be allowed to convert used passenger vehicles into taxis. The vehicles must be less than five years old.
Operators may also sell taxis that are more than three years old – up to a maximum of 5 per cent of the fleet – as PHCs or passenger cars.
These new rules give operators a new way to acquire taxis, and reduces the risk in trialling new taxi models.
Additionally, taxi fleets and PHC companies must disclose the vehicle history of all newly registered, converted or transferred chauffeured or self-drive PHCs and taxis.
This will improve transparency in the resale market and encourage the registration of these vehicles for their intended purposes, said LTA. This rule is the only one with an announced implementation date – it kicks in for all vehicles registered from the current COE bidding exercise, which ends on Mar 5.
Meanwhile, larger ride-hailing platforms will face additional requirements. LTA did not name these operators, but said they have wider driver and commuter networks, enabling them to benefit from network effects and influence market norms.
They will be subject to additional responsibilities including higher data disclosure obligations, to “ensure that market norms continue to protect the interests of commuters and drivers”, said Dr Khor.
On the intended time frame for these changes, LTA said it will continue to consult industry associations, with details to come at a later date.
Over the past decade, Singapore’s taxi population has dwindled to 13,117 at the end of 2024 from 28,736 in 2014, while the number of chauffeured PHCs has skyrocketed to 59,371 from 1,609.
