The recent steep increase in vehicles' COE price is due to the reduce number being issued. Limited supply leads to the increase in price. This is because of another government projection which went way off the mark.
They have been underprojecting the number of vehicles on the road over the past few years and 'suddenly' realise it this year. So the numbers of COE has to be reduced to make up for past years mistake of issuing too many COE.
This is not the 1st time their projection is off target. Once upon a time they projected S'pore would have a budget deficit, but we ended up with a major budget surplus that year.
Then there was the 'over population' projection which led aggresive campaigns in family planning to stop at 2 kids. This resulted in our current dilemma of population replacement issue.
One thing leads to another - and recently they realised their population projection for our economic sustainablility is off mark too. The high influx for foreign talent and labour besides taxing heavily on our basic infrastructure has undesirable social and economical impact.
Perhaps they should be more cautious in making major policy changes base on projection which they don't seems to be able to get it right at all. There is a high price to pay everytime they got it wrong and go into damage control mode.