In Singapore, you don’t just buy a car—you compete for the right to own one

SINGAPORE: “Singaporeans are the most entitled people in the world. And we have the Certificates of Entitlement (COEs) to prove it.” Most probably said in jest, this remark recently caused a stir on LinkedIn, triggering insightful reactions from citizens across the city-state. Underneath the humour is a multifaceted, emotional discussion about how a small city-state manages one of its most prickly issues: car ownership.

In the “pressed-for-space” Singapore, roads aren’t just about movement and flexibility; they compete with businesses, parks, homes, and public spaces. The question isn’t whether Singapore can build additional highways, but whether it should. That’s where the COE system comes in.

Why cars come with certificates

In 1990, Singapore instituted the Certificate of Entitlement system—a market-based allocation mechanism that requires potential automobile owners to bid for the right to own and use a vehicle for ten years. The objective is to limit the number of automobiles on the road and avoid the kind of urban gridlock that can be witnessed in capitals like Jakarta.

Despite all the infrastructure development over the years, the Lion City just doesn’t have the physical space for everyone to drive. And so, Singapore opted for guidelines over pandemonium.

“It’s doing what it’s designed to do”

Detractors of the COE system frequently cite spiralling prices as an indication of a fragmented system. But defenders contend that this is exactly the point. The high cost of COEs discourages unwarranted car possession and guarantees that traffic stays controllable. In this interpretation, the system isn’t a failure, but a complete success.

As one commenter puts it: “An open bidding system for a limited number of COEs means some people will be priced out. That’s not a flaw. That’s the function.”

A question of fairness

Still, the “fairness” question is huge. Opposition MP Jamus Lim recently expressed concerns about the COE system’s transactional character, saying that “those with genuine needs may not have the purchasing power to meet those needs.”

Several online users echoed the sentiment: “Shouldn’t a middle-class family in need of a car for school runs and groceries have greater priority than a billionaire buying their third Bentley?”

“Maybe,” the commenter acknowledges, “but the billionaire isn’t driving all three Bentleys at once.” If the objective is to lessen the number of cars on highways — not to produce a seamlessly impartial society — the system functions as envisioned. If we’re responding to ‘fairness,’ then yes, the model may need an about-turn.

But designing for fairness is not simple. As former Prime Minister Lee Hsien Loong once said, there are “so many good arguments” for exclusions—infirmities, elderly family members, job requirements—that any system attempting to account for all would rapidly become unfeasible.

Is there room for improvement?

Some commenters provided suggestions:

-A distinct COE grouping for families with young children or those taking care of elderly parents;

-Higher COE tiers for the affluent possessing numerous automobiles—reflecting Singapore’s liberal property tax structure;

-Inducements for individuals who oblige themselves to limit their car use.

-More investment in independent ride-hailing options that can be summoned on demand, reducing the necessity of personal ownership overall.

One commenter asked, “Isn’t it also about pollution? Why allow billionaires so many cars when climate change is real?” Another mentioned how Singapore’s Electronic Road Pricing (ERP) system, soon to become more cutting-edge with satellite monitoring, is now a vital tool in handling road usage.

The role of public transport

What many netizens agreed on was the superiority of Singapore’s public transport system. “Sometimes taking the MRT is faster than a car in Singapore,” one commenter hooted, comparing it with what they went through on Jakarta’s MRT.

Undeniably, Singapore’s transport system is top-notch. Perhaps that’s the reason why the city’s car-lite strategy has functioned better than most. Parroting Enrique Peñalosa, former mayor of Bogotá, one contributor reminded us: “A developed country is not a place where the poor have cars. It’s where the rich use public transportation.”

Entitled or enlightened?

Are Singaporeans “entitled,” or just wrestling with an intensely multifaceted problem that impacts daily life, flexibility, family planning, and financial choices?

As the feisty discussion on LinkedIn showed, there’s no single answer. What’s evident is that the COE system is more than just a mechanism for traffic administration. It’s a mirror—reflecting the pressures between impartiality and competence, sustainability and ease, autonomy and regulation.

Singapore may not have found the picture-perfect equilibrium yet. But at least, it’s having the conversation.