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[Singapore] You can't buy a car freely⁉ What is Singapore's unique system and its background?

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Singapore is a leader in Southeast Asia. The country is very small, about the same size as the 23 wards of Tokyo. Due to the government's transportation policy, the purchase and ownership of a car is governed by a unique system that is difficult for many foreigners, including Japanese, to understand.

How do I get a driver's license in Singapore?

You can't buy a car freely⁉ Singapore's unique system and its background

When you come to Singapore from Japan or other countries, you may be surprised to know that you cannot buy a car freely in Singapore. In order to purchase a car in Singapore, you must first obtain a "Certificate of Entitlement" (COE). In simple terms, this is the government's permission to purchase a car.

As I mentioned earlier, Singapore is a very small country with a high population density. In such a country, if there are no restrictions on the number of vehicles, there is a high possibility of frequent heavy traffic jams, which would have a serious impact on all economic activities, not to mention logistics, one of the lifelines that make Singapore a hub within Southeast Asia. For this reason, the Land Transport Authority (LTA), a government agency similar to Japan's Ministry of Land, Infrastructure, Transport and Tourism, closely controls the total number of cars and motorcycles.

The COE is divided into several categories depending on the vehicle's displacement, use, etc., and the amount varies from one category to another. The COE is valid for a maximum of 10 years and is obtained through a bidding process. Since the number of quotas is limited, it makes sense to have some kind of criteria, but in essence, the rights are given to those who are willing to pay a higher price, which is a system based on the Singaporean way of thinking that is businesslike in many ways. The information required for this "bidding" process is outlined below.
　- Age: 18 years and above
　- Method: Name, ID, and bank account are required. Bid via ATM or online banking
　- Timing.　
　　o Usually 1st and 3rd Monday of the month
　　o Starts at 12:00 pm and ends at 4:00 pm on the 3rd working day (Wednesday)
　- Bid amount can be changed during the period.

For example, in January 2022, bidding prices will be increased for all vehicle categories. One thing to keep in mind is that these prices are not for the vehicle, but for the right to purchase the vehicle. One thing to keep in mind is that this price is not for the vehicle, but for the right to purchase the vehicle. If you are successful in winning the bid, you will be purchasing the vehicle itself, not a family member's car or a rental car, and the government would really like you to use public transportation as much as possible.

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Translated with AI Translator

  • ExpertConnect Asia

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  • Jan 26, 2022
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