In the second COE bidding exercise for January, COE premiums for Cat A continue to rise while Cat B and Cat E see a slight drop in premiums since the last tender.

Premiums for Cat A, for cars up to 1,600cc in engine capacity and with an output of no more than 130bhp, went up by $788 (1.57 percent) to end the bidding tender at $50,889.

Premiums for Cat B, larger cars with more than 130bhp or engine displacements larger than 1,600cc, went down by $299 (0.56 percent) and ended at $52,807.

In Cat E, the open category, prices also fell by $401 (0.76 percent), with premiums closing at $52,600.

The results of the latest COE bidding exercise ended with lower premiums than expected. Predictions on the expected rise in COE prices in light of the recent Singapore Motor Show were met with a surprising drop in Cat B and Cat E premiums. The decreased demand for larger cars may have been caused by factors such as a slowing economy and fears over job security.