Here’s an excerpt from the conversation:
Walter Theseira:
If you look at what LTA’s objective is in this, their objective is not to target a certain price level. Their objective is to try to stabilise the COE supply, to try to undo some of this boom-and-bust cycle we have, because that is not very good for the economy – to have this extreme swing in prices and COE supply.
It’s because with all these swings in pricing, you induce a lot of behaviour from car buyers, businesses, and so on, to try to time the market, to try to second guess what’s going to happen.
I don’t think that makes a lot of sense. So the objective is to stabilise (the) supply. But if they wanted to do that, my opinion would be (that) it would be more sensible for them to target the earlier part of 2025, 2026 to inject most of the supply, because that is when stabilisation makes a big difference.
