Commentary: Debate over COE system will go round in circles if we don't accept reality that car ownership is exclusive

SINGAPORE: Singapore is the most expensive place in the world to own a car. Make that motorcycle, van, truck, and anything that moves on the road.

Here is a simplistic back-of-the-envelope calculation to illustrate this point: Every year, between 30,000 to 40,000 car COEs are allocated. Otherwise, the debate risks going round in circles with the same points being raised repeatedly about making the system fairer, for example, by giving preference to those who really need a car or restricting it to one per household., which they will not, as I have explained above.But since the government is unlikely to do so as it is intent on ensuring there is no gridlock on the roads, Singaporeans have no choice but to come to terms with it.

Private hire cars are said to be responsible for the surge in demand and hence the price of COEs. They are blamed because they are big businesses with financial power to outbid ordinary people.Think of Grab and Gojek as companies that distribute the ownership costs of the world’s most expensive cars among the thousands of people who use them.

Whenever I use private hire cars, I have found them convenient and usually reliable. With the current high ownership costs of cars, they are a godsend.It isn’t but there is no other alternative that is as effective in preventing traffic congestion which is a major problem in many cities.In contrast, the money collected from COE premiums can be used to benefit the public, for example, by subsidising public transport.I believe that policy ought to be stable and predictable.

Every five years it should announce the COE numbers for the next five. This will send a strong signal to the market that the numbers have been fixed and discourage wild biddings.

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