Owning a car in Singapore, one of the most expensive countries in the world, has become even more unaffordable as costs skyrocket. According to data from the Land Transport Authority, the price for a 10-year Certificate of Entitlement, a license required to purchase a vehicle, has reached a record low of $104,000, more than four times the price in 2020.
This exorbitant price tag only grants the right to purchase a standard category A car with a small or medium engine of 1,600 cc or less. Those looking for bigger or flashier options, such as SUVs, will have to shell out a staggering $146,002 for the Category B license.
The quota system, introduced in 1990 to reduce traffic and emissions, has effectively made car ownership unattainable for the average resident of Singapore. With an average monthly household income of $10,099, many are struggling to justify the costs associated with owning a car.
Local car salesman, Ricky Goh, expressed shock at the price hike, stating, “Sales have already been very poor. This will be even worse for the business.” Singaporean mother of two, Wong Hui Min, also voiced concerns about the increased costs, as she heavily relies on her car for transporting her children to school and various activities. “I don’t know if I can afford to keep my car in the long term,” she lamented.
Singaporeans already contend with living in the world‘s most expensive city, facing persistent inflation, rising public housing costs, and a slowing economy. The latest increase in car ownership costs only adds to the financial burden on residents.
Nevertheless, proponents of the quota system argue that it has successfully mitigated congestion issues faced by other Southeast Asian capitals such as Bangkok, Jakarta, and Hanoi. They also point out the extensive public transport system available to those who cannot afford a Certificate of Entitlement. Alternatively, purchasing a motorcycle remains a more affordable option, with the permit costing $10,856.
As Singaporeans grapple with the rising costs of car ownership, many will have to reconsider their dependence on private vehicles or explore alternative modes of transportation. The impact on businesses and individuals alike is expected to be significant, further highlighting the challenging financial landscape faced by residents in Singapore.