01 Dec '11, 1am

Higher COE prices to drive up firms' costs next year

Higher COE prices to drive up firms' costs next year

Vans at the Tan Chong Motors showroom. COEs for these vehicles are set to pass the current record of $40,000. -- PHOTO: JOSEPH NAIR FOR THE STRAITS TIMES By Christopher Tan, Senior Correspondent Businesses already bracing themselves for a global slowdown face a double whammy next year, with the cost of vans and lorries set to rise. The motor industry is expecting a sharp fall in the supply of certificates of entitlement (COEs) for commercial vehicles - which could push premiums even higher than the current record level of $40,000. Mr Ron Lim, general manager of Nissan agent Tan Chong Motors, estimates that the quota will shrink by a 'very drastic' 37 per cent from February to July, leading to the smallest supply to date. Background story GOVT MONITORING COSTS 'The Government will continue to monitor business costs, with a view to identifying potential pressures early and t...

Full article: http://www.straitstimes.com/BreakingNews/Singapore/Story/...

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