Singapore implements a system of periodic auctions for a fixed number of Certificates of Entitlement (COE). Each permit is valid for 10 years, aiming to control the number of automobiles on the road to about one million.

The island nation, home to about 6,1 million people, can be traversed in under one hour. This COE auction mechanism makes Singapore the most expensive country in the world to purchase an automobile.

The COE price for small automobiles, those with engines under 1,6 liters, is currently four times higher than before the Covid-19 pandemic and shows no signs of cooling. Responding to questions in the Singapore Parliament in May regarding the continuous increase in COE prices, transport minister Jeffrey Siow stated that demand for cars remains high due to increasingly competitive electric vehicle prices, while the number of small car permits available for auction is decreasing.

Cars on a street in Singapore. *Straits Times*

Currently, the COE price alone is equivalent to the cost of purchasing four Toyota Corollas in the US. Meanwhile, a Toyota Corolla in Singapore, after adding the COE, registration fees, and various taxes, costs up to 139,000 USD, equivalent to nearly 3,7 billion VND, according to current exchange rates.

For comparison, the median annual household income in Singapore is around 115,500 USD (over 3 billion dong), while a government-subsidized public housing apartment starts from 107,500 USD (over 2,8 billion dong).

In October 2023, the COE price for large automobiles surpassed the 100,000 USD mark for the first time, while the COE for small automobiles was around 77,500 USD at that time. Since the beginning of this year, the COE price for small cars has steadily increased through each auction session, from 78,844 USD to the current record level. To meet COE regulations, many car manufacturers reduce the engine capacity of popular models sold in Singapore to qualify for cheaper permit categories.

Ho Tan (according to Reuters)