The COE system remains a cornerstone of Singapore's urban planning, effectively preventing the gridlock seen in other major global cities. By strictly limiting the number of vehicles allowed on the road, the government ensures that public transport remains the primary and most efficient mode of travel. Supporters argue that without this mechanism, the island would face unsustainable traffic congestion that would degrade the quality of life for all residents.
Proponents of the current policy emphasize that the high cost of vehicle ownership is a necessary trade-off for maintaining a functional road network. When premiums rise, it serves as a market signal that road space is a finite and premium resource. This encourages individuals to consider alternatives such as the extensive MRT network and bus services, which receive significant public investment to ensure reliability and coverage.
Furthermore, the revenue generated from COE bidding is reinvested into the national transport infrastructure. This creates a virtuous cycle where the cost of private car ownership helps fund the very public transport systems that provide a viable alternative to driving. By keeping the vehicle population growth rate near zero, the authorities can focus on improving traffic flow and reducing carbon emissions from the transport sector.
While the high prices are undoubtedly difficult for individual buyers, the long-term benefit is a city that remains mobile and accessible. The system forces a rationalization of car use, ensuring that those who truly need a vehicle are the ones who prioritize it. This disciplined approach to land use is essential for a small, densely populated nation where space is at an absolute premium.