You’ll Now Need Over RM400,000 Just For The COE If You Want To Buy A Small Car In Singapore

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Buying even a small car in Singapore has become more expensive after the permit required to own one hit a record high

According to The Edge, buyers now have to pay almost SGD129,000 (around RM407,560) for a Certificate of Entitlement (COE) for small cars, marking the highest price ever recorded for the category.

Singapore's COE system requires motorists to successfully bid for a certificate before they can own and register a vehicle for 10 years.

The certificates are auctioned in limited numbers to control the country's vehicle population, which is capped at about one million despite its population of 6.1 million, consisting of 4.2 million citizens and permanent residents and 1.9 million non-residents

The city-state, which can be driven across in under an hour, has long relied on the quota system to manage congestion. However, the financial publication reported that it has also made Singapore the world's most expensive place to buy a car.

The latest record means the permit alone now costs about the same as four new Toyota Corollas in the US

Once the COE, registration fees, and taxes are added, a single Toyota Corolla in Singapore would cost SGD179,888 (around RM596,000), The Edge reported.

The publication also noted that Singapore's median annual household income is SGD149,352, while prices for subsidised public housing start from around SGD139,000.

According to The Edge, COE prices for small cars, those with engines below 1.6 litres, have quadrupled compared to pre-pandemic levels.

Prices have climbed steadily this year, rising from SGD123,847 during the first auction in 2026 to almost SGD129,000 in the latest exercise.

In Parliament in May, Singapore Transport Minister Jeffrey Siow attributed the rising prices to strong demand, driven partly by more competitively priced electric vehicles, while the supply of COEs for smaller vehicles has been shrinking.

To qualify for the cheaper COE category, The Edge reported that several carmakers have even detuned the engines of popular models sold in Singapore so they fall below the 1.6-litre threshold.