Getting motorcycle permit in this country costs more than getting brand new bike

Singapore is known to be one of the world's most expensive citiesand this effect has now extended to its cheapest mode of transportation - motorcycles. The cost of getting a 10-year motorcycle permit in the city-state has hit a record S$12,801 ($8,984) this month, as per data from the Land Transport Authority, which is up over 200% in four years. The cost is more than that of a new, entry-level bike in the Southeast Asian nation.

The country regulates the number of permits, called certificates of entitlement, so as to limit the number of motorcycles and cars on the road. As of September, the city's motorcycle fleet stood at around 142,000 while the number of cars on its roads stood at about 650,000.

With an increase in prices for permits, drivers in Singapore would need nearly S$20,000 to own and ride an entry-level motorcycle worth, which is worth just S$5,000. Renewal of existing permits cost more than S$11,000, and though it is less than a new one, it is almost six times more than the price a decade ago.

The implication of price rise will be such that those who own their bikes will pay the increased fees directly while those who rent are likely to see their fees go up. The city-state has many delivery drivers who rent their vehicles, either from an independent operator or from a food delivery company like Grab.

In order to make up for the rise in cost of permits, several motorcycle leasing companies in Singapore are considering rate hikes. One of the leasing companies, GigaRider, said that it is likely to raise rent by 10% in the first quarter of 2023 for its corporate clients.

Not just motorcycles, the city-state is also trying to have a control over the number of cars on the roads.

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