Drivers in Singapore have to pay £87,000 for a certificate to own a car
Introduced in 1990, Singapore has a 10-year ’certificate of entitlement’ (COE) system – which is used to control the number of vehicles in the state
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Your support makes all the difference.Drivers in Singapore have to pay £87,000 for a certificate first if they want to own a car.
The $106,000 price is equivalent to four Toyota Camry Hybrids in the United States.
Introduced in 1990, Singapore has a 10-year “certificate of entitlement” (COE) system – which is used to control the number of vehicles in the state, which is home to 5.9 million people.
The high COE fees have made car ownership costs in Singapore the highest in the world as fees for a large car have more than quadrupled from 2020 with prices hitting a record S$146,002 ($106,376.68; £87,328.87).
Meanwhile, COE, registration fees and taxes, on a new standard Toyota Camry Hybrid currently costs S$251,388 ($183,000; £1,50,232) in Singapore, compared with $28,855 (£23,688) in the US ($1 = 1.3725 Singapore dollars.)
For a small government-subsidised flat in Singapore, it costs about S$125,000.
Due to a post-Covid increase in activity, more car purchases have been taking place which has led to a spike in pricing to help limit the amount of vehicles. In 2020, during the pandemic, fewer people in Singapore were driving and the price of COEs dropped to about S$30,000.
What does this mean for people in Singapore?
The median annual household salary in Singapore is around S$121,188.
As prices continue to increase, this puts cars firmly out of reach for many middle-class citizens in Singapore.
People have been impacted by persistent inflation and a slowing economy in the city, and some are selling the cars they bought when COE prices were low to make a profit.
Sociologist Tan Ern Ser told Reuters: “There is a need to lower one’s aspiration from achieving the ‘good life’ to settling with a ‘good enough life’.”
A father of two, Jason Guan, now lives without a car.
Mr Guan told the outlet he bought his first car, a Toyota Rush, for S$65,000 in 2008, including the price of the COE. Although he no longer has a car, he said he is now focusing on other perks that Singapore offers for his family.
"As a family man, it doesn’t affect me much as Singapore still has a good and stable education system. In terms of security, it’s still one of the safest countries," he said.
What is a Certificate of Entitlement (COE)?
The Certificate of Entitlement (COE) gives people the right to own and use a vehicle in Singapore.
One Motoring says on its website, that if people want to register a vehicle, they must first bid for a COE during the “open bidding exercises conducted twice a month.”
“Before the start of each bidding exercise, LTA will announce the vehicle quota of COEs available for each category. When you secure a COE from the bidding exercise, you can register a vehicle and use it for 10 years,” One Motoring adds.
Once the 10-year mark has ended, car owners can choose to either deregister or renew their vehicle or CEO by paying the Prevailing Quota Premium (PQP) for your vehicle category.
Additional reporting from agencies
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