Expat Living City Guide (Singapore)

TO DRIVE OR NOT TO DRIVE?

It’s a question a lot of newcomers wrestle with – especially after they get here and discover how seamless the public transport is! Here are some other queries that might cross your mind if you’re weighing up wheels.

“Who is allowed to drive in Singapore?”

If you have a valid overseas driving licence, you can drive in Singapore for up to 12 months before you need to convert your licence. If you become a PR, however, you’ll need to convert it immediatel­y. If your licence is not in English, you must have an Internatio­nal Driving Permit in addition to your licence.

Converting to a Singapore licence requires passing the Basic Theory Test (BTT), which involves learning local traffic rules. Apply in person at a driving test centre (see sgdriving. net or ssdcl.com.sg for details).

Converting a licence costs $50 and the test fee is $6.50. Be sure to buy the basic theory book at a driving centre, bookshop or petrol station.

“How much does it cost to get a car?”

The best way to explain how cars are priced in Singapore is by explaining some of the key acronyms that are used.

OMV – Open Market Value

This is the rough base value of the car. Singapore Customs places an OMV on each vehicle, which determines the additional fees you’ll need to pay – like the following!

ARF – Additional Registrati­on Fee

On top of the $220 basic Registrati­on Fee (RF), you have to pay an ARF, which is 100 percent of the OMV and upward (the higher the OMV, the higher the ARF), plus a 20 percent excise duty, and GST and road tax. Road tax is reduced if you purchase a hybrid or electric car, or a car that runs on natural gas.

COE – Certificat­e of Entitlemen­t

To own a car, you need a document known as a COE (valid for ten years). The government uses the COE system to control the number of cars on the road, releasing only a limited number each year. You can bid for your own COE or leave it to your dealer – and the cost rises or falls according to demand; it can range from a dollar to $100,000!

The good news? You can recoup any unused portion of the COE. If you sell your car after two years, for example, your COE remains valid for eight years, and you’ll recoup

80 percent of its cost.

Financing options can be affordable, too. All vehicles in Singapore must carry at least third-party insurance.

“How do I pay for tolls and parking?”

You need to buy a CashCard from a petrol station or convenienc­e store and use it to pay for Electronic Road Pricing (ERP). ERP is charged on expressway­s and in the central zones – rates vary according to location and time.

All cars in Singapore used to come with a grey box mounted above the dashboard, known as the In-vehicle Unit (“IU”), which held the card. However, in 2024 these are being phased out and replaced with the Onboard Unit (“OBU”) as part of the transition to the new ERP 2.0 system.

The CashCard can also be used for parking, though the Parking.sg app is a newer, easier way to pay for parking using your smartphone.

Did you know?

Singapore has 10 main roads or “expressway­s”, all known by a threelette­r acronym (PIE, CTE, AYE and so on). Constructi­on is underway on an eleventh – the NSC (North-South Corridor) – which is due to open in 2027 and will link the city centre with Woodlands, Sembawang, Yishun, Ang Mo Kio, Bishan and Toa Payoh.