Singapore's Transport: COE Trends & Car-Lite Future

In June 2025, Singapore’s Certificate of Entitlement (COE) premiums for cars dropped for the second consecutive tender, with Category A prices falling 5.4% to $96,999 and Category B declining 3.4% to $113,000. Yet, these figures remain significantly higher than a year ago, when Category A stood at $88,200 and Category B at $100,607. This volatility underscores a broader tension in Singapore’s transport landscape: the enduring appeal of private car ownership against the government’s ambitious push for a car-lite society. As the city-state invests heavily in public transport and active mobility to achieve a sustainable urban future, the interplay between private and public transport systems reveals critical insights into how Singaporeans move and what it means for the nation’s economic and environmental trajectory.

The COE system, a cornerstone of Singapore’s vehicle ownership regulation, continues to shape the private transport landscape. In the June 4, 2025, tender, premiums fell across most categories, with Category A (smaller cars and electric vehicles) dropping from $102,501 to $96,999 and Category B (larger cars and EVs) from $116,988 to $113,000. The Open category (Category E) saw a 3.5% decline to $113,900, and commercial vehicles (Category C) decreased by 1.9% to $62,000. Motorcycles, however, bucked the trend, rising 3.4% to $9,000. Despite these reductions, COE prices remain elevated compared to June 2024, reflecting a persistent high cost of car ownership that makes private transport a luxury for many.

Singapore’s public transport system, one of the most efficient globally, is central to the government’s vision of a car-lite society under the Land Transport Master Plan 2040 (LTMP 2040). The plan aims for a “45-minute city with 20-minute towns,” ensuring 92% of residents can reach neighborhood centers within 20 minutes via walking, cycling, or public transport, and 67% can complete peak-period journeys within 45 minutes. Recent expansions, such as Stage 4 of the Thomson-East Coast Line, have bolstered connectivity, with the MRT network set to reach 360km by the 2030s. The public transport market is projected to grow by 1.98% annually, reaching $1.50 billion by 2029, driven by high ridership and infrastructure investments.

Active mobility—walking, cycling, and personal mobility devices—forms a critical pillar of Singapore’s car-lite strategy. The cycling path network is set to expand from 700km in 2030 to over 1,000km by 2040, with new paths planned in residential estates like Kampong Bugis and industrial areas. These paths facilitate first-and-last-mile connectivity, encouraging residents to combine cycling with public transport. Urban planning prioritizes pedestrian-friendly designs, ensuring local amenities are within walking distance, which supports the 20-minute town concept and enhances livability.

Electric vehicles (EVs) are a growing segment within Singapore’s private transport landscape, supported by government incentives and infrastructure development. By 2030, the city aims to deploy 60,000 EV charging points, with every HDB town EV-ready by 2025. This aligns with the broader goal of reducing the transport sector’s carbon emissions, which constitute a significant portion of the nation’s environmental impact. The influx of Chinese EV brands has intensified COE competition, as seen in the persistent high premiums despite increased supply, reflecting strong market interest in sustainable private transport options.

Singapore’s transport policies have profound economic and social implications. For lower-income households, the high cost of car ownership, driven by COEs and additional taxes, makes public transport the default choice. While fares remain relatively affordable, concerns about accessibility in suburban or industrial areas persist, with some residents facing longer commutes. The car-lite push frees up land previously used for roads and parking, enabling more housing and green spaces, which enhances urban livability but requires careful planning to avoid overcrowding public transport during peak hours.

While the car-lite vision is compelling, private transport retains significant appeal. Cars offer unmatched convenience for families, businesses, and those in less connected areas, where public transport may not suffice. Critics argue that the COE system disproportionately burdens middle-income households, limiting their mobility options. The recent dip in COE prices has sparked optimism among some dealers, who expect a rebound in demand as buyers capitalize on lower costs. This suggests that private vehicles remain a status symbol and practical necessity for certain demographics, despite high costs.

Singapore’s transport landscape in 2025 reflects a deliberate shift towards sustainability and inclusivity, with the recent COE price drop offering a glimpse into the complex dynamics of private vehicle ownership. The LTMP 2040’s vision of a “45-minute city with 20-minute towns” is not just a policy goal but a transformative blueprint for urban living. By prioritizing public transport, active mobility, and EV infrastructure, Singapore is positioning itself as a global leader in sustainable urban mobility. Yet, challenges remain—ensuring equitable access, managing EV adoption costs, and addressing public sentiment about car ownership.