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Opposing the COE Price Increase: Concerns Over Affordability and Accessibility

Published July 8, 2026 at 1:15 PM UTC

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The recent escalation in Certificate of Entitlement (COE) premiums, with the Category A COE reaching a record S$129,000, raises significant concerns regarding the affordability and accessibility of vehicle ownership in Singapore. This sharp increase may disproportionately impact middle-income families and individuals, potentially limiting their mobility options. While the Land Transport Authority (LTA) attributes the elevated COE prices to sustained demand, including seasonal factors such as the recent Car Expo, it is crucial to consider the broader implications of such price hikes. The automotive market's dynamics should not come at the expense of equitable access to transportation for all segments of society. The narrowing gap between Category A and Category B COE premiums, now just S$980, suggests that the price disparity between smaller and larger vehicles is diminishing. This trend may lead to increased demand for larger vehicles, potentially exacerbating road congestion and environmental concerns. Higher COE prices can also have a cascading effect on the overall cost of vehicle ownership, including insurance, maintenance, and fuel expenses. For many, these cumulative costs may render owning a car an unattainable goal, thereby reducing personal mobility and quality of life. In light of these considerations, it is imperative for policymakers to reassess the COE pricing mechanism. Implementing measures to ensure that vehicle ownership remains accessible and affordable for a diverse population is essential for maintaining social equity and mobility in Singapore.