Singapore’s Pricy Pursuit of the Open Road: A Tale of the Coveted COE System
In the urban oasis of Singapore, the quest for car ownership has become an extravagant endeavor, all thanks to the enigmatic 10-year Certificate of Entitlement (COE) system, introduced in 1990 as an avant-garde solution to curb congestion.
Yearning for a set of wheels in the Lion City? Brace yourself for the COE ritual, a bi-weekly spectacle where aspiring car owners partake in auctions orchestrated by the government. The authorities, with a firm grip, decide the number of these elusive certificates that grace the bidding arena.
As if that wasn’t enough, the monetary burden transforms Singapore into the world’s most wallet-draining country to purchase a car. Consider this: a brand-new Toyota Camry Hybrid commands a princely sum of S$250,000, a hefty tab that not only covers the vehicle but also includes the coveted COE and a bouquet of taxes. To put this into perspective, it’s nearly six times the cost you’d incur stateside.
Diversifying its grip, the COE regime casts its net over various vehicular domains—ranging from humble hatchbacks to roaring motorcycles and pragmatic commercial vehicles.
In a symphony of financial crescendos, COE prices reach unprecedented heights, dancing to the tunes of a post-pandemic resurgence and the looming reduction in government rebates slated for next year. The price floor for a car COE has skyrocketed to S$104,000, nearly tripling since the pandemic-stricken days of 2020 when car demand took a backseat.
Among the celestial echelons of COEs, the “Open” category, unfettered by restrictions, scales new peaks, commanding a staggering S$152,000.
While Singapore proudly boasts one of the world’s highest concentrations of millionaires within its modest borders, the COE conundrum remains a formidable barrier for the average citizen, grappling with a moderate average salary of around S$70,000. The dream of car ownership becomes an elusive mirage under the weight of the COE scheme.
The government, ever the advocate for communal mobility, urges residents to embrace the stellar public transport system, a global standout in efficiency and reliability. In a commitment exceeding S$60 billion, Singapore charts a course to expand and rejuvenate its rail network over the next decade, aiming to reinforce the allure of public commuting.
In this city-state, teeming with a population of approximately 5.5 million, the roads harbor just shy of a million private cars as of the curtain call of the previous year. The annual allotment of new COEs, a closely watched metric, hinges on the graceful exit of aging vehicles from the roads, a numerical waltz that shapes the vehicular destiny of Singaporeans.
In the land of the Merlion, where dreams of automotive ownership come at an exorbitant price, the COE system weaves a tale of desire, disparity, and the relentless pursuit of the open road.
