ELI5: Why is owning a car considered a luxury in Singapore?

51 views Mar 5, 2026 2 min read

Owning a car in Singapore is considered a luxury because it's very, very expensive.

Imagine Singapore is like a tiny island, like a small playground. Everyone wants to play on the playground, but there isn't much space! To make sure not too many people are using the playground at once, and to keep the air clean, the government makes owning a car really pricey.

Think of it like this:

  • Limited Space: Just like the playground, Singapore has limited space for roads and parking. More cars mean more traffic jams!
  • High Taxes and Fees: To discourage everyone from buying a car, the government adds lots of extra costs:
Certificate of Entitlement (COE): This is like a special ticket you need to buy just to be allowed to own a car for 10 years. It can cost as much as the car itself! Registration Fees: More money you have to pay to register your car. Road Tax: Money you pay every year to use the roads. Insurance: Money you pay to protect yourself if you get into an accident. * Import Duties: Taxes on bringing the car into Singapore.
  • Excellent Public Transportation: Singapore has really good buses and trains (the MRT). It's like having a super-fast, comfortable way to get around without needing your own car! Because of this, many people choose to use public transport instead of buying a car. It's often faster and cheaper.
So, because of all these extra costs and good public transport, owning a car in Singapore is a luxury that only some people can afford, like having a really fancy toy that not everyone can buy.

Follow-Up Questions

Still curious? Ask a follow-up!

Test Your Understanding

Take a quick quiz and challenge your friends!

Want to learn more?

Ask another question and get a simple explanation!

Ask a New Question