CNN –
Owning a car in Singapore, one of the most expensive countries in the world, has always been something of a luxury. But now costs have risen to an all-time high.
A 10-year certificate of eligibility – a driver’s license that people in the wealthy city-state must obtain before they can even buy a vehicle – now costs a record minimum of US$76,000 (104,000 Singapore dollars), more than four times as much as in Year 2020, according to the Land Transport Authority.
And that just buys you the right to buy a standard Category A car with a small to medium-sized engine of 1,600 cc or less.
If you want something bigger or flashier – such as an SUV – you will have to spend US$106,630 (Singapore $146,002) for a category B driving license – instead of US$102,900 (Singapore $140,889).
Then there are the costs of the vehicle itself to consider.
The quota system was introduced in 1990 to minimize traffic and reduce emissions in a space-starved city-state that has a population of 5.9 million but an impressive public transport network.
This has put cars out of reach for the average Singaporean, where the average monthly household income was US$7,376 (Singapore $10,099) in 2022, according to the Ministry of Statistics.
Ricky Goh, a local car dealer, said he “almost fainted” when he heard about the price increase. “Sales were already so bad. Beyond that, it will be even worse for business,” he told CNN.
Wong Hui Min, a mother of two, said she may have to rethink her dependence on her car even though she mainly uses it for her family.
“I run around a lot and send my children to and from school, as well as other activities such as swimming lessons and tutoring. I need my car. For me, it’s just not convenient to take taxis or shared rides everywhere,” she said.
“A Singaporean family, on average, has to save for years just to buy a car to meet their needs,” Wong continued, adding: “I don’t know if I can afford to keep my car in the long run .”
For some, the announcement is just the latest financial blow.
Locals say living in Singapore, already ranked as the world’s most expensive city, has become extraordinarily expensive in recent years due to persistent inflation, rising public housing costs and a slowing economy.
But supporters of the quota system say it has helped save Singapore from the kind of traffic jams that regularly roil other Southeast Asian capitals such as Bangkok, Jakarta and Hanoi.
Those who cannot afford a certificate of entitlement can also use Singapore’s extensive public transport system, they point out.
If that doesn’t work, there is the option of getting a motorcycle, whose permits are relatively cheap at US$7,930 (Singapore $10,856).