Singapore’s Certificate of Entitlement Keeps Car Ownership Out of Reach for Many Residents

Singapore has restricted private-car ownership since 1990 through a permit system that makes vehicle ownership one of the city-state’s most expensive consumer purchases.

Ten-Year Permit Required

Anyone seeking to register a car in Singapore must first obtain a Certificate of Entitlement, or COE. The permit grants the holder the right to own and use a vehicle for 10 years.

COEs are distributed through auctions held twice a month. Prices vary according to demand, vehicle category and the limited number of permits available. In recent auctions, the cost of a permit has exceeded $75,000, before accounting for the price of the vehicle, taxes, registration fees and other ownership expenses.

Policy Aims to Manage Congestion

The system is designed to limit the number of vehicles on Singapore’s roads, where land is scarce and population density is high. By controlling the supply of permits, authorities seek to reduce congestion and manage the environmental and infrastructure costs associated with private transportation.

Public Transit as an Alternative

Singapore has paired its vehicle-ownership restrictions with significant investment in public transportation. The city-state, home to approximately 5.9 million people, operates an extensive rail and bus network intended to provide an alternative to private cars.

As a result, owning any car in Singapore can represent a substantial financial commitment, rather than simply a routine means of transportation.