As Singapore’s cost of living soars, permits to ride outpace price of cheapest motorbikes

Motorcycle permit prices have jumped more than 200 per cent in the past four years, but the land-scarce city state isn’t only targeting bikes

Permits for entry-level cars cost nearly triple what they did in 2018 – adding to widening inequality, as it gets costlier to have fun and relax, too

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The cost of a new motorcycle permit in Singapore has increased more than 200 per cent over the past four years. Permits for entry-level cars are nearly triple what they cost in 2018. Photo: Roy Issa

Published: 10:01am, 26 Oct 2022Updated: 10:18am, 26 Oct 2022

Singapore’s reputation as one of the world’s most expensive cities now extends to one of its cheapest modes of transport: motorcycles.

The cost of a 10-year motorcycle permit in the city state hit a record S$12,801 (US$9,012) this month according to data from the Land Transport Authority, up more than 200 per cent in four years and more than the cost of a new, entry-level bike in the Southeast Asian nation.

Singapore controls the number of permits, called certificates of entitlement, as a way to limit the number of motorcycles and cars on the road. As of September, the city caps its motorcycle fleet at around 142,000. The number of cars is limited to about 650,000.

Cars for sale are seen parked at a used car dealership in Singapore this month. The city state limits the number of cars allowed on the roads. Photo: Reuters

At current permit prices, drivers would need nearly S$20,000 to own and ride an entry-level motorcycle worth S$5,000.

That’ll eventually trickle down to delivery riders who zigzag the island on low-end bikes, according to Nathan Peng, a political science lecturer at the Singapore Management University. As of now, renewing an existing permit costs more than S$11,000 – less than a new one, but almost six times more than the price a decade ago.

Those who own their bikes will pay the increased fees directly, and those who rent are likely to see their fees go up. Many delivery drivers rent their vehicles, either from an independent operator or from a food delivery company like Grab.

Several motorcycle leasing companies in Singapore are considering rate increases to make up for the higher permit costs, local newspaper The Straits Times reported. One company, GigaRider, said it is likely to raise rent by 10 per cent in the first quarter of 2023 for its corporate clients. Grab notes on its website that rental charges may rise because of COE price increases.