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Certificate System in Singapore Makes Driving an Expensive Privilege, While Investments in Public Transport Ensure Accessible Mobility and Fewer Cars on the Roads
In Singapore, owning a car means much more than just being able to pay for the vehicle. The real hurdle lies in the authorization system, which turns the simple act of driving into an expensive privilege.
The government created this mechanism in 1990 as a way to control congestion and reduce pollution.
Since then, anyone who wants to register a car must first obtain a certificate.
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COE: Pay to Drive
The Certificate of Entitlement, known as COE, is mandatory and is valid for only ten years. To obtain it, one must win an auction.
These auctions occur twice a month and attract hundreds of interested bidders. However, as demand always exceeds supply, prices soar.
Today, each certificate costs over € 70,000, around R$ 437,775.
This means that even after spending a fortune to obtain the COE, one still has to buy the car.
The result is straightforward: a popular model can cost over € 100,000, approximately R$ 625,394.
Examples of Those Who Took the Risk
Insurance broker Andre Lee exemplifies this reality well. In 2020, he shelled out US$ 24,000 — nearly R$ 127,604 — for a 2010 Kia Forte. This amount is five times the price of the same car in the United States.
Lee admitted that the purchase had more symbolic value than practical use. “It’s like wearing a Rolex,” he said. However, after three years, he ended up selling the vehicle.
Between fuel, parking, and maintenance, the costs became unsustainable, even with a good salary.
Another experience is that of business owner Su-Sanne Ching, who invested US$ 150,000 — nearly R$ 797,527 — in a Mercedes-Benz.
Of that total, US$ 60,000 was spent solely on the COE. For her, paying for this luxury is worth it for the convenience of having a car in daily life.
Public Transport as a Solution
Singapore, with 5.9 million residents and a land area smaller than New York City, could not support a much larger fleet. Hence, the policy of limitation works.
Today, the city-state records only 11 vehicles for every 100 people. In comparison, in the European Union, this figure reaches 56 or 57, while in the United States, it exceeds 80.
With fewer cars, the streets become cleaner, quieter, and safer. Emergency services navigate more quickly, and pedestrians gain more space.
This scenario is only viable because public transport is reliable. In Singapore, a long subway ride costs less than R$ 10.
Additionally, platforms like Grab offer app-based transport with speed and affordable prices.
Heavy Investment in Mobility
In the last ten years, the government has allocated significant amounts to expand the network. New subway lines have been inaugurated, a thousand buses have been purchased, and 200 trains have been added to the system.
Today, 80% of families live within ten minutes of a station, which facilitates daily routines and reduces the need for private cars.
Is Exporting the Model Possible?
Various cities are seeking ways to reduce traffic, but few come close to Singapore’s system.
Mexico limits car use by license plate, London and Stockholm apply urban tolls, and New York began adopting the measure this year.
However, none of those alternatives are as restrictive. The high cost of the COE makes the automobile a luxury item reserved for those who can spend a lot.
Therefore, replicating this model requires two conditions: significant investment in public transport and political will to face resistance.
In many regions, making cars inaccessible to the majority may be unfeasible or undesirable.
With information from Xataka.
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