COE dreams: Can Singapore make car ownership fairer for the middle class?

SINGAPORE: In the city-state, buying and keeping a car is a tough act for a lot of people. For countless middle-class families, what was a difficult but likely objective—owning a car—now appears to be virtually impossible. As Certificate of Entitlement (COE) prices escalate, even a rudimentary automobile can be as pricey as a tiny condominium in specific areas of the region.

Frustration is on the rise. On platforms like Reddit, Singaporeans are expressing the feelings that many have shared for years: The system appears to be stacked against the average person.

The broken dream of car ownership

A recent Reddit post captured the prevailing sentiment: “COE prices in Singapore have been climbing nonstop, reaching absurd levels that are pricing out the average middle-class family. Owning a car has now become an unrealistic dream for many.”

It’s not just about convenience. For some families, a car is necessary to transport children to school, take care of elderly parents, or manage work shifts where public transport is limited. Thus far, under the existing structure, these needs vie in the same COE pool as those purchasing their second, third, or even fourth luxury car for weekend relaxation.

Efficiency vs. fairness

The Lion City’s vehicle ownership system, focused around the COE, is known for efficiently regulating road bottlenecks and handling the number of automobiles, but the unrelenting query is — at what cost?

Some Singaporeans are speculating if it’s time for more well-adjusted procedures, maybe encouraged by the property market’s Additional Buyer’s Stamp Duty (ABSD) system. If housing speculation and hoarding can be minimized via a segmented revenue system, why not ponder a similar tactic for vehicles?

Imagine a strategy where purchasing a second or third car comes with higher taxes, or where processing a car purchase under the name of another family member to dodge expenses comes with financial consequences. Such a scheme could produce an impartial environment for first-time consumers and dampen unnecessary spending by those with substantial funds.

Not a call for cheap cars—just fairer access

The Reddit user behind the original post made it clear: This isn’t about making cars cheap. “If every household could afford a car, Singapore’s roads would become even more congested than they already are,” he noted.

Rather, the intention is to find an equilibrium—one where those who truthfully need a car don’t get priced out, while demand for extravagant vehicles is kept in check via policy procedures.

“Car ownership is not a right”

Not everyone approves, and the reactions demonstrate an eclectic array of views. One commenter referenced a previous statement by SM Lee, who drew a clear line between housing and car ownership: “The government considers that housing is a right and that transport is a right, but car ownership is not a right.”

From this perspective, the COE isn’t meant to be fair; it simply aims to control demand. In practical terms, it works. Roads stay judiciously clear, public transport gets favored handling, and owning a car becomes an indulgence, just like owning a Birkin bag or a first-class plane ticket.

Others directly stated that “The end game is to make car ownership not equitable,” and that “You just need to earn more.”

These comments signify a more profound societal disquiet. Is a system genuinely fair if it only benefits the wealthy?

Implementation hurdles, not so simple

Even among those who support the idea of a car tax similar to the ABSD, doubt exists. “There are many cars registered under different family members for various reasons,” one commenter pointed out. “Tracking real ownership or intent is difficult.”

In a city-state where the number of cars is carefully regulated, any new policy would need to be tightly controlled to avoid misuse.

A new way forward?

Ultimately, this discussion is not just about cars. It’s about access, justice, and the type of society Singapore intends to create.

While some argue that the current system is functioning—roads are clearing up, public transport is growing, and luxury signals remain clear—others believe that a system where only the wealthy can own cars increases inequality and disconnects everyday Singaporeans.

Is there a means in the current model to present more targeted equality? Can guidelines be made to distinguish between necessity and indulgence without crushing the system?

That is still vague.

Nevertheless, as COE prices keep growing, the conversation has changed from just about prices and outlays. It’s now about values, and whose needs the system truly serves.