Understanding transport in Singapore
New in town and don’t know your Jurong from Dhoby Gaut and Katong? Mixing up your COE and OMV? Whether you want to navigate this city by bus, train, bicycle, or car, here’s what you need to know about getting around Singapore.
Public Transport
1. The EZ-link card. This card stores value necessary for taking the trains and buses in Singapore. It’s a tap and go system here to make lines moves faster, and you’re charged based on distance travelled.
2. The MRT. Also known as the Mass Rapid Transit, better known as the train. There are currently four lines – East-West line, North-South line, North-East line, and the Circle line. The fifth, Downtown line, is due to be fully completed in 2017. It will open in stages starting later this year. In the less developed parts of Singapore the Light Rapid Transit (LRT) serves the suburb’s population. The LRTs connect from an existing MRT station.
3. Buses. Far more complicated than the train system, buses are a convenient way of getting around the city – if you already know the city. We highly suggest downloading iris, an app for SBS Transit buses that will update you on route and timings, or buying a guide book when you first arrive. Note that there are a few bus operators in Singapore.
Taxis
Taxis are an affordable and comfortable way of getting around Singers, but there are both upsides and downsides on relying on cabs.
Compared to cities like Sydney, New York, and Tokyo, taxis here are highly affordable. All cabs go by the meter – you’ll never have to ask – and start at a rate of approximately $3.20 (depending on the operator). There are a number of operators here but they are equally reliable. Fare is charged by both distance and waiting time (so if you’re stuck in traffic, be warned your fare will jump dramatically).
There’s a surcharge for peak hour, a surcharge if you call a cab, and a higher surcharge if you book a cab (the difference is that the latter is scheduled to arrive at a later time, the former arrives anywhere between 3-7 minutes.)
Taxis are aplenty in Singers, but there’s an unyielding demand for these guys, so it can often be tough to get one. Storming out? Forget even trying to call a cab. Download this app to avoid a notoriously long waiting time.
Cars
Buying a car is tricky business here, which is why we asked Nordad, a reputable car buying service in Singapore, to answer some of our burning questions.
1. Help! I’m new to Singapore and I don’t understand all these terms! COE, OMV, PARF – what do they all mean?
Singapore has a complicated market for new and used cars. Some simple terms explained:
COE stands for Certificate of Entitlement. It sounds regal but this is the one time tax you need to pay for the right to drive a car in Singapore for 10 years. To restrict car ownership a quota is established and every 2nd Wednesday individuals and car dealers bid for COEs.
Just as there are a range of types of cars (like SUV, MPV, sedans etc) there are a range of COEs – Category A for cars under 1.6L, Cat B for cars above 1.6L, Cat C for goods vehicles and buses, Cat D for motorcycles, and Cat E – an open category which is transferable (can be used for Cat A or B).
Please note you don’t need to buy a COE for a used car as it would already have one, so beware if you are!
OMV stands for Open Market Value. This is the value Customs puts on the car, taking into account purchase price, freight, insurance, and incidentals. In Singapore, the tax paid on imports is based on the OMV.
PARF stands for Preferential Additional Registration Fee. This is the import tax paid to the government for importing a car. Pending on the price of the car, it is calculated as
< $20K: 100% of OMV
20-50K: 140% of OMV
50K+: 180% of OMV
For example, a car that has an OMV of $100K in Singapore would pay $20K +$42 + $90K = $152K to the government in taxes (this doesn’t include the COE).
2. What’s the process of buying a new car in Singapore like? How long does it take?
The process of buying in Singapore can be quite exhausting, although the system has improved over the years. Essentially you find a car you like, put a small deposit down whilst applying for finance (which is roughly 2.8%) and insurance, and once it’s approved you transfer the vehicle to your name and drive away. The finance approval and insurance take around 3 days for approval so usually we tell our customers about a week. If a customer does not need finance I have had them driving away their cars in the afternoon.
3. Why are cars so notoriously expensive here?
The main reason is because there are severe restrictions on the number of cars in Singapore. Vehicle population is around 500,000 private cars on the road. With a population around 5.5M the Government is backing mass transit as the way forward. With car ownership quota restrictions, limited COE, additional taxes on import duties, and finance capped at 5 years and 50%, this puts severe pressure on ownership cost. Still, if you buy the right car the cost of ownership could still be little as $500 per month. You just have to buy the right car.
4. Where do I go to buy a car in Singapore?
Many of the new car dealers are in Alexandria but the used ones are dotted all around the island. Increasingly expats have used buying/ sourcing agents such as Nordad to do the legwork and sourcing for them to ensure they don’t get ripped off!
Image: LTA Facebook