SINGAPORE: Before the turn of the decade, Certificates of Entitlement (COEs) for small cars cost about S$33,000 and drivers complained about the high price. Prices jumped to almost S$50,000 in April 2021, and people complained again.
This year, COE prices spiked even higher and visits to showrooms plummeted as consumers complained about the high premiums for large car COEs after they rose to a record level above S$113,000 in early September. In tandem, COEs for small cars rose to nearly S$75,000 by end-June, and to S$86,000 in early September.
When prices of COEs then dropped slightly to around S$96,000 for large cars and S$80,000 for small ones in early October – still dramatically higher than a year earlier – buyers flocked back to car showrooms.
DRIVERS STILL WANT CARS
The car buying and price increases are happening despite policymakers’ efforts to get people to drive less and purchase fewer cars.
In 2017, the Land Transport Authority (LTA) announced a 15-year plan for Singapore to reduce its reliance on cars and move towards public transport, cycling, walking and car-sharing.
The solution included expanding rail transport, infrastructure for cycling and an electric car-sharing scheme. In 2019, LTA director Lina Lim told GovInsider that the government hoped to decrease car use by 2040 with on-demand buses, driverless vehicles and public transport.
She said that private cars are not necessary at all for most residents.