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Since motorbikes are one of the cheapest forms of transportation in Singapore, it has earned a reputation as one of the most costly cities in the world. According to figures from the Land Transport Authority, the cost of a 10-year motorbike permit in the city-state reached a record S$12,801 ($8,984) this month, up over 200% in four years and more than the price of a new, entry-level bike in the Southeast Asian country.
Singapore regulates the number of certificates of entitlement, also known as permits, in order to reduce the number of motorbikes and vehicles on the road. The city’s motorbike fleet is limited to roughly 142,000 as of September. There can only be roughly 650,000 automobiles total.
Drivers would require over S$20,000 at the present permit price in order to purchase and operate a $5,000 entry-level motorbike.
According to Nathan Peng, a political science professor at the Singapore Management University, it would ultimately trickle down to delivery riders who crisscross the island on cheap motorcycles. Currently, it costs more than S$11,000 to renew an existing permission. This is less than the cost of a new permit but about six times what it did a decade ago.
Renters’ costs are anticipated to rise, while individuals who own their bikes will pay the higher rates directly. A lot of delivery drivers hire their cars, either from a private owner or via a meal delivery service like Grab.
According to the Straits Times, some motorbike leasing firms in Singapore are thinking about raising their rates to cover the increased permit expenses. One business, GigaRider, said that it would probably increase rent for its corporate customers by 10% in the first quarter of 2023. On its website, Grab warns that possible price increases for COE might result in higher rental costs.
Singapore doesn’t only have motorcyclists in mind. The land-scarce nation is also restricting the number of automobiles on the road; entry-level car licences now cost over S$80,000, almost quadruple what they did last year.
Although it’s difficult to estimate the whole effect given the few data currently available, Peng believes that higher costs would exacerbate the already-widening disparity among people. One of the very few affordable options for many low-income employees to fulfil their job or family obligations is on a motorbike.
Singapore has been working to reduce its wealth inequality even as living expenses are rising. The housing market, where more families with young children are choosing to live in rental flats, is an indication that social inequality is entrenching itself, said Singapore’s prime minister-in-waiting Lawrence Wong at an event on October 10.
