Why Car Ownership is a Luxury in Singapore

Here in the United States, car ownership is encouraged through tax incentives and near-mandated by a lack of public transit infrastructure — having a car is cheap, and not having one is just about impossible in much of the country. But in much of the rest of the world, this is reversed: Cars are a luxury, and transit options are abundant. One country that exemplifies this is Singapore, where owning a car comes with a hefty price tag.

The Cost of Owning a Car in Singapore

In Singapore, owning a car is not only expensive but also highly regulated. The government imposes various taxes and fees to discourage car ownership and promote the use of public transportation. The cost of owning a car in Singapore can easily exceed $100,000, making it one of the most expensive places in the world to own a vehicle.

One of the main factors contributing to the high cost is the Certificate of Entitlement (COE) system. Under this system, individuals must bid for the right to own a car for a period of ten years. The bidding process drives up prices significantly, with COEs often costing tens of thousands of dollars.

In addition to the COE, there are other taxes and fees involved in owning a car in Singapore. These include the Additional Registration Fee (ARF), which is based on the vehicle’s open market value, and the Goods and Services Tax (GST), which is levied on both the purchase price and recurring costs such as road tax and insurance.

Furthermore, there are ongoing expenses such as high fuel prices and Electronic Road Pricing (ERP) charges, which are tolls imposed on vehicles entering certain congested areas during peak hours. All these costs add up, making car ownership a luxury that only a select few can afford.

The Benefits of Public Transportation

While car ownership may be out of reach for many Singaporeans, the city-state boasts an efficient and extensive public transportation system. The Mass Rapid Transit (MRT) system, consisting of trains and buses, covers most areas of Singapore and offers a convenient way to travel around the city.

The MRT system is known for its reliability, cleanliness, and affordability. Trains run frequently, and stations are well-maintained with modern amenities. The fare structure is distance-based, ensuring that commuters only pay for the distance they travel. This makes public transportation an attractive option for daily commuting and traveling within the city.

In addition to the MRT system, Singapore also has an extensive bus network that reaches even the most remote areas. Buses are equipped with air conditioning and provide a comfortable ride for passengers. The bus network is integrated with the MRT system, allowing commuters to easily transfer between modes of transport.

The Future of Car Ownership in Singapore

Despite the high cost of car ownership, there are still individuals who choose to own a car in Singapore. However, the government is actively promoting car-lite initiatives to reduce congestion and improve air quality. These initiatives include the expansion of public transportation infrastructure, the implementation of car-sharing schemes, and the development of cycling and walking paths.

As Singapore continues to invest in its public transportation system and promote sustainable modes of transport, the demand for car ownership may decrease further. The younger generation, in particular, is embracing car-lite lifestyles and opting for alternative modes of transport.

In conclusion, car ownership in Singapore is a luxury due to the high costs and strict regulations imposed by the government. However, the city-state’s efficient and extensive public transportation system provides a viable alternative for residents and visitors alike. As Singapore moves towards a more sustainable future, the reliance on cars is likely to diminish, making public transportation the preferred choice for getting around.

Sources:

https://jalopnik.com/dealers-are-freaking-out-about-buyers-using-the-ev-tax-1850874386

https://jalopnik.com/amtrak-trains-can-t-hit-full-speed-on-its-ancient-track-1850810049

https://jalopnik.com/owning-a-car-in-singapore-costs-106-000-and-that-does-1850898836