Singapore's COE System Faces Calls for Reform As Prices Skyrocket and Affordability Declines
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The COE (Certificate of Entitlement) system in Singapore requires people to bid for permits to own a car, aiming to limit vehicle ownership. COE prices have surged over 100% in the past year.
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The system has come under criticism recently as prices skyrocket, with some calling for reforms or even completely scrapping it. However, the government defends it as necessary to control congestion.
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Alternatives like restricting ownership to 1 car per household or a lottery system have been suggested but likely have flaws. The system may need adjusting but is still seen as the fairest option.
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Underlying issues include the number of COEs being based on 1990 levels rather than current needs. Usage-based pricing has also been suggested but may cause political issues.
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The system is increasingly seen as elitist and unaffordable. Significant reforms may be imminent, potentially before the next election expected this year.