Cost of 10-year Motorcycle Permit in Singapore Soars to S$12,801 in October

The cost of 10-year certificates of entitlement (COE) or permits for motorcycles in Singapore spiked by more than 200% in four years, reaching a record high of S$12,801 in October this year, according to data released by the Land Transport Authority (LTA) via Bloomberg on Oct. 26.

There is also an expected surge for permit renewal fees, which could cost as much as S$11,000 or more, hitting a six-fold increase over the last ten years. The increase in the permit fee will also escalate the cost of motorcycle rent, which will affect food delivery drivers.

The Straits Times reported back on Oct. 5 that several motorcycle leasing companies in the city-state, including GigaRider, plan to impose a rate hike of about 10% during the first quarter of 2023 for corporate clients amid the surge in COE prices. Grab said that they may also raise its rental charges.

With the recent price hike in permit fees, motorcyclists now need around S$20,000 to purchase and operate a vehicle worth S$5,000.

Aside from motorcycles, the LTA also plans to further limit cars by imposing an S$80,000 permit fee on entry-level cars, which is almost triple the price in 2018.

Singapore regulates the issuance of vehicle permits in order to control or limit the volume of cars and motorcycles in the city-state. As of September, the motorcycle fleet in Singapore is capped at roughly 142,000, while number of cars are limited to 650,000.