In this country, one has to pay more for permits than getting a new bike

Getting permission for a bike is becoming costlier than a new bike in Singapore. According to the data from the Land Transport Authority, the cost of a 10-year motorcycle permit hit a record S$12,801 ($8,984) in October. This is not only over 200 percent more in the last four years but also more than the cost of a new, entry-level bike.

Currently, the driver has to pay 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, Nathan Peng, a political science lecturer at the Singapore Management University, told Bloomberg. 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.

Singapore has taken the decision to increase the cost of the permit of the vehicle which is called certificates of entitlement with an aim to limit the number of motorcycles and cars on the road.

Media reports said that the numbers of motorcycles and cars were limited to around 142,000 and 650,000 respectively.

While the owner of the bikes can pay the increased fees directly, those who rent are likely to see their fees go up. It is to be noted here that several people who do the job of the delivery drivers rent vehicles.

The Straits Times reported that many of the Singapore-based companies which are giving motorcycles on lease are mulling over increasing their rate with an aim to make up for the higher permit costs. GigaRider, a company informed that it is likely to raise the rent by 10% in the first quarter of 2023 for its corporate clients. Likewise, the Grab noted on its website that rental charges may rise because of COE price hikes.

Apart from targeting motorcycles, Singapore is also trying to limit cars on the road. It has increased the price of permits for entry-level cars to over S$80,000, which is nearly triple since 2018.