Singaporethat small city/country-state between Malaysia and Indonesia where there are barely more than five million inhabitants, is a place of contrasts. While the enclave has a high degree of government control and certain practices that can be classified as repressive, on the other hand, new technologies are embraced to the point of being a world reference in the public sphere towards AI. There, having a car is not a practical necessity, it is a statement of status.
Driving in Singapore. The story was told a year ago. the new york times. In Singapore, owning a car is not practical, it is more of a statement comparable to wearing a designer suit or sporting a luxury watch. The reason? He property certificate system (introduced in 1990 to control congestion and pollution) requires citizens to pay astronomical sums just for the right to buy a vehicle.
These certificates, known as certificates of entitlement (COE), can reach up to $84,000raising the total price of common automobiles to exorbitant figures more typical of a supercar. As insurance agent Andre Lee, who in 2020 paid $24,000 for a Kia Forte Second-hand, having a car was simply part of his professional image, although he later recognized that the expense was not justified and chose to sell it.
The price in 2026. This year, the COE system has prices that exceed usually $100,000 Singaporeans (about 70,000–85,000 euros) just for the right to circulate for ten years. The different categories oscillate in that range, with large and premium cars reaching the highest figures, while even commercial vehicles and motorcycles have seen notable increases compared to previous years.
This volatility, with biweekly auctions that can move prices by thousands of euros, reflects a deja vu: an extremely stressed market where artificial scarcity imposed by the State continues to be the dominant factor, even above the cost of the vehicle itself.
An unnecessary luxury. The underlying problem is also explained from another side. With a public transport network affordable and effective, few residents They really need a car to get around the city. Long rides cost less than two dollars and transportation apps like Grab are available. widely available. Despite this, twice a month they celebrate COE auctionswith limited quotas set by the government.
This policy has been very effective: Singapore has only 11 cars per 100 inhabitants, far below countries like the United States or Italy, where the figure exceeds 75. Other cities have adopted anti-congestion measures, such as urban tolls in LondonStockholm or New Yorkbut none charges as much to own a car as Singapore.
The car and social classes. For the richest in the country, purchasing a vehicle with all the associated costs does not represent a problem. Su-Sanne Ching, a businesswoman, said that paid $150,000 by a Mercedes-Benzincluding a COE of $60,000. On the other hand, for the middle class, especially families with children, the car becomes a luxury that is difficult to sustain. Joy Fang and her husband told the Times that they bought a used Hyundai Avante in 2022 for $58,000 to take his two children.
Every month they allocate more than 10% of their family budget to maintain the vehicle, which has forced them to reduce outings and trips. Even so, they consider that the alternative (moving with small children and bags on public transport) is unviable.
Help for electricians. Regarding “electrification”, the main aid (EEAI) has been reduced by half. Previously up to 15,000 SGD, and now it has a maximum of SGD 7,500. Not only that, apparently, it already has a date of disappearance by 2027.
Plus: the VES system too has been adjusted and has progressively reduced incentives. In other words, this year, the nation seems to be in the phase of progressive withdrawal of aid to electric vehicles.
Sometimes not even the symbolism. There are more extreme cases. Even for those who purchase a car for symbolic or professional reasons, as Andre Leecumulative expenses can cause the decision loses meaning. Maintenance, gas, parking and insurance end up exceeding initial expectations.
Lee, for example, sold his car three years after purchasing it and now commutes by public transportation, or borrows his father’s vehicle when he needs to meet clients. In his opinion, there are other priorities that ended up outweighing the image projected by having your own car.
Rational choice versus chaos. Singapore’s restrictive model contrasts with that of other Southeast Asian cities like Jakarta or Bangkokwhere extreme traffic turns travel into an odyssey. For many Singaporeans, giving up the personal car is a reasonable price to enjoy clearer streets and fast journeys. In this regard and according to sociologist Chua Beng Huatthe choice is cultural and practical: the population prefers to avoid long hours behind the wheel. The man himself, despite owning a BYD SUV to transport his grandchildren, says he uses the subway when he goes downtown.
Ultimately, the car in Singapore appears to have become an aspirational rather than a functional commodity, one reserved for those who can afford it without compromising their finances. Unlike other parts of the world where the vehicle represents an almost imperative need for mobility or independence, in the island-state it is, for many, a luxury that compares with the most ostentatious objects.
Driving there is like having a Rolex, or almost.
Image | William Cho
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A version of this article was published in 2025. We have updated its content with everything that has happened since then.
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