Singapore's Middle Class Struggles with Soaring Car Ownership Costs
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Singapore, known for its well-developed infrastructure and efficient public transportation system, is now witnessing a significant impact on its middle-class residents as the cost of car ownership skyrockets to unprecedented levels. The exorbitant prices of the Certificate of Entitlement (COE), the necessary document to own a vehicle in Singapore, have reached record-breaking heights, leaving residents concerned and frustrated.
The COE system, implemented in 1990, was designed to regulate vehicle ownership in Singapore, mitigate congestion, and control pollution. Under this system, a limited number of COEs are released through auctions held every two weeks, and prospective car owners must bid for these certificates. However, the surge in demand coupled with limited supply has led to a staggering increase in COE prices, making car ownership an increasingly unattainable dream for the middle class.
One striking example of the soaring costs is the US$150,000 price tag for a Toyota Corolla, a popular and relatively affordable car model in many other countries. This astonishing figure not only highlights the financial burden imposed on Singaporean car buyers but also illustrates the stark contrast between car prices in Singapore and other global markets.
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