Car ownership in Singapore has become increasingly unaffordable due to the rising cost of the certificate of entitlement (COE). The cost of a 10-year COE, necessary for purchasing a car in Singapore, has reached a fresh record high of S$146,002 ($106,619). This high cost, coupled with taxes and import duties, makes Singapore the most expensive country in the world to buy a car.
The COE system was introduced in 1990 as a measure to combat congestion. Singapore holds auctions every two weeks to sell a limited number of COEs, controlled by the government. These COEs come in different categories for smaller cars, motorcycles, and commercial vehicles. In recent months, COE prices have been consistently hitting record highs, driven by a post-pandemic recovery and anticipation of government rebates being reduced next year.
The cost of car ownership in Singapore extends beyond the initial purchase price. For example, a new standard Toyota Camry Hybrid can cost around S$250,000, including the cost of the COE and taxes. In comparison, the same car in the US is almost six times cheaper. This price disparity puts car ownership out of reach for many ordinary Singaporeans, especially considering the average salary is around S$70,000.
The high price of cars in Singapore has prompted the government to actively promote the use of public transportation, which is considered one of the best in the world. In the past year, over S$60 billion has been allocated to expand and improve the country’s rail network. This investment aims to provide accessible and efficient transportation options for Singapore’s population of approximately 5.5 million.
While luxury car dealerships have seen a surge in demand, the rising cost of car ownership leaves many Singaporeans unable to afford a car. The government’s efforts to reduce congestion and prioritize public transportation align with Singapore’s commitment to sustainable and efficient urban planning.
The increasing financial burden of car ownership in Singapore has broader societal implications. It affects the mobility and accessibility of individuals, particularly those with lower incomes. Additionally, the high cost of living, including expensive car ownership, disproportionately impacts Singapore’s poor.
As COE prices continue to rise, it is essential for Singaporean residents to explore alternative transportation options and consider the overall affordability of car ownership. The government’s initiatives to improve public transportation infrastructure should be supported and utilized, as they provide a more cost-effective and sustainable solution to Singapore’s transportation needs.
In conclusion, the exorbitant cost of the COE in Singapore has made car ownership inaccessible for many. The government’s focus on public transportation and investments in infrastructure reflect a commitment to alleviate congestion and promote sustainable urban development. Singapore residents must adapt to the changing landscape of car ownership and consider alternative transportation options for a more accessible and affordable future.
