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Critiquing the Record COE Premiums: A Barrier to Affordable Vehicle Ownership

Published July 8, 2026 at 6:51 PM UTC

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The recent record-breaking surge in Category A COE premiums to S$129,000 raises significant concerns about the accessibility and affordability of vehicle ownership in Singapore. Such high premiums disproportionately affect middle-income families and individuals, potentially pricing them out of the market and exacerbating social inequality. The Land Transport Authority (LTA) has attributed the elevated COE prices to the three-week interval since the last exercise, which intensified competition among bidders. However, this explanation does little to address the underlying issue of limited COE availability and the lack of affordable alternatives for prospective car owners. The current COE system, while effective in controlling vehicle population growth, may be inadvertently creating a barrier to entry for many Singaporeans who rely on personal vehicles for daily commuting and family needs. To promote inclusivity and ensure that vehicle ownership remains attainable for a broader segment of the population, it is imperative for policymakers to reassess the COE framework. Potential reforms could include increasing COE quotas, introducing tiered pricing structures, or providing subsidies for lower-income individuals to alleviate the financial burden imposed by soaring COE premiums. Such measures would help ensure that the dream of vehicle ownership does not remain out of reach for a significant portion of the Singaporean populace.