Singapore Named Most Expensive Country for Car Ownership

Singapore Car Ownership Costs: The Most Expensive Country in the World

Singapore is the most expensive country in the world to own a car, driven primarily by its Certificate of Entitlement (COE) system, high import duties, and annual road taxes. For Malaysian users, understanding these costs provides a benchmark for regional car ownership comparisons and highlights the financial barriers faced by drivers in the city-state. The COE, a quota-based permit required to register a vehicle, can cost over SGD 100,000 (approximately RM 350,000) for a single certificate, making car ownership a luxury accessible only to the wealthy. This article, based on a report by Careta.my, examines the specific costs, taxes, and structural factors that make Singapore the global leader in car ownership expenses.

Key Facts

Why Is Singapore the Most Expensive Country for Car Ownership?

Singapore’s car ownership costs are the highest globally due to a combination of government-imposed quotas, high taxes, and limited land area. The COE system artificially restricts vehicle supply, driving up permit prices. Additionally, import duties and registration fees multiply the base cost of a car. Singapore’s total cost of owning a car is approximately 5 to 7 times higher than in Malaysia, with a typical family car costing over RM 700,000.

According to the Careta.my article, “The COE price for a small car in Singapore can exceed SGD 100,000, which alone is more than the entire cost of a new car in many countries.” This quote underscores the extreme financial burden. The government uses these measures to control traffic congestion and encourage public transport use. For Malaysian readers, the contrast is stark: a similar car in Malaysia costs roughly RM 100,000–150,000, including all taxes and duties.

How Does the COE System Work?

The Certificate of Entitlement (COE) is a permit that allows a vehicle to be registered and driven in Singapore for 10 years. It is obtained through a bidding system held twice a month, with quotas set by the Land Transport Authority (LTA). The COE price is determined by supply and demand, and in 2025, Category A (cars up to 1,600cc) COE prices have averaged SGD 105,000.

After 10 years, the COE must be renewed at the prevailing quota premium, or the vehicle must be scrapped. This system effectively limits the total number of vehicles on the road. For Malaysians, the COE concept is unfamiliar because Malaysia uses a one-time registration fee and annual road tax without a quota system. The Careta.my report notes that the COE cost alone can be higher than the entire purchase price of a car in Malaysia.

What Are the Total Costs of Owning a Car in Singapore?

Total car ownership costs in Singapore include the COE, import duty (100% of OMV), Additional Registration Fee (up to 180% of OMV), excise duty, goods and services tax (GST), and annual road tax. For a typical 1.6L family car, the total upfront cost can reach SGD 200,000–250,000. Annual recurring costs such as road tax, insurance, and parking can add another SGD 5,000–10,000 per year.

Fuel costs are also higher than in Malaysia due to Singapore’s petrol excise duties. The Careta.my article highlights that even a used car in Singapore often costs more than a new car in Malaysia. For example, a 5-year-old Toyota Corolla in Singapore may still be priced at SGD 150,000 (RM 525,000), whereas a new Corolla in Malaysia costs around RM 120,000.

How It Compares for Malaysian Users

For Malaysians, the comparison is most relevant for those who commute across the Johor–Singapore causeway or consider purchasing a car in Singapore for work. The cost differential is enormous: a car that costs RM 120,000 in Malaysia would cost over RM 700,000 in Singapore. Malaysian drivers who work in Singapore often opt to keep their Malaysian-registered cars and pay the Vehicle Entry Permit (VEP) fees rather than buy a Singapore car.

Additionally, Malaysian car owners face their own high costs due to import duties and excise taxes, but these are still far lower than Singapore’s. The Careta.my article notes that Singapore’s car ownership costs are 5–7 times higher than Malaysia’s, making it the most expensive in the world. For Malaysians living in compact urban areas like Kuala Lumpur, the high cost of parking and congestion may be comparable, but the upfront purchase price is not.

Common Questions

How much does a COE cost in Singapore in 2025?

As of 2025, the average COE price for Category A (small cars up to 1,600cc) is approximately SGD 105,000 (RM 367,500). Prices fluctuate based on bidding results and quota availability.

Can a Malaysian drive a Singapore-registered car in Malaysia?

Yes, but only with a valid Vehicle Entry Permit (VEP) and after paying tolls and taxes. However, the high cost of owning a Singapore car makes this impractical for most Malaysians. Most prefer to use Malaysian-registered vehicles.

Is it cheaper to buy a car in Malaysia than in Singapore?

Yes, significantly. A new family car in Malaysia costs around RM 100,000–150,000, while the same model in Singapore costs over RM 700,000. The difference is mainly due to Singapore’s COE system and high import duties.

Sources and Methodology

This article is based on the source material from Careta.my titled “Singapura Negara Paling Mahal di Dunia untuk Memiliki Kereta” (accessed 2025). All currency conversions from Singapore dollars (SGD) to Malaysian ringgit (RM) use an approximate rate of 1 SGD = 3.5 RM, current as of 2025. COE price data reflects Category A averages from the first quarter of 2025. Malaysian car price comparisons are based on typical on-the-road prices for a Toyota Corolla Altis in Malaysia. This article was last updated on 20 October 2025. Information specific to Malaysia was verified against the Malaysian Automotive Association (MAA) 2024 data.