Car Ownership in Malaysia for Singaporeans - A Rising Trend?

Not every driver behind the wheel, carrying a Malaysia registered license plate, on the roads of Johor Bahru is actually a local.

A notable trend is emerging: car ownership for Singaporeans in Malaysia. The once-popular idea of crossing the causeway for a quick day trip has transformed into a more permanent arrangement for some. This shift raises questions about its implications for individuals and the community. In this article, we explore the reasons behind this growing trend and the advantages and disadvantages of car ownership in Malaysia.

The Appeal of Car Ownership in Singapore

Cash, Car, Condo, Credit Card, Country Club Memberships....

Being one of the 5 C's in Singapore, car ownership has long held substantial appeal. Beyond mobility, owning a car reflects our social identity and aspirations in a competitive, meritocratic society. It's a visible symbol of success, freedom, and personal achievement. However, in recent years, there has been a noticeable shift in the ideology surrounding car ownership. The decision to own a car is no longer purely status-driven — it's increasingly weighed against practicality, cost, and lifestyle value.

In a city known for its efficient, well connected public transport system, one might think having a car is increasingly unnecessary. One of the biggest advantages of owning a car is the flexibility and convenience it provides. Families can plan trips according to their own schedules, without the need to squeeze in busy crowded MRTs, enjoy a comfortable ride and even enter Johor Bahru for a short holiday or shopping spree.

One main culprit? Singapore's infamous Certificate of Entitlement (COE).

*COE trends retrieved 5/8/2025 at https://coe.sgcharts.com/

CAT A: Cars below 1600cc or 97kW*

*COE trends retrieved 5/8/2025 at https://coe.sgcharts.com/

CAT B: Cars above 1600cc or 97kW*

Singapore's car ownership has remained strong in demand and sustained growth, despite the naggingly stubborn high COE driving up car prices. COE prices over the past 3 years has never let off one bit, possibly even staying for good. This astronomical cost of car ownership has left many thinking; why not own a Malaysia registered car across the border and drive my dream car I cannot afford at home? For a fair point of comparison, a humble Toyota Altis Elegance today comes at a S$140-160k inclusive of COE, taxes and registration. That is equivalent to buying a in Malaysia.

We cannot really blame Singaporeans for this indulgence, really. To be able to drive their dream car at a fraction of the cost? That is not even considering petrol prices yet!

Simple Car Ownership Laws

How to own a Malaysia registered car as a Singaporean? For starters, the Malaysia regulations for foreign car owners is pretty similar to that for locals. Under its road laws, Singaporeans with a valid Singapore driver license may legally drive a Malaysia registered car as long the car has a valid road tax and insurance. The application process to buy a car is not very complicated either, requiring a thumbprint and passport verification. Financing a Malaysia registered car brings a bit more hassle as expected; a local guarantor is required and greater down payment for Malaysian banks. Nevertheless, records show many Singaporeans typically pay for their car in full with cash. So that is not going to stop our Singaporean dream.

Now here is where it can get complicated with car insurance, since you are now subjected to Malaysian road laws and customs. For any car accidents (touch wood), we are not experts in this subject but we do know the process can be long drawn and difficult to handle with the local insurers. Moreover, as most car repairs will probably be handled within Malaysia, it means you would have an additional cross-border responsibility. That may get messy and definitely not for the faint hearted.

An obvious downside is that Singapore road laws do not permit Singaporeans and PRs to drive foreign vehicles in Singapore (for obvious reasons). Well, its like having a overseas side chick but all legal. Bringing in your side chick into Singapore is another different matter altogether, you probably have to check how to do so legally or face tough penalties and vehicle seizures.

 The Allure ~*

As this trend grows, new businesses like car storage and care packages are starting to capitalize on this dream. Meet Carlogy, a company that boast car park space (aircon or non-aircon) with 24/7 security, a weekly engine warming and regular car washes. I have to be honest. That is a lot of pampering for your car. Probably your own Singapore car does not even get that kind of premium care! But what it truly sells is the assurance that your Malaysia registered car is well taken care of and the ease of mind even though you might be thousands of miles away. The best part is it only sets you back RM700-1000 (~S$200-300) monthly, which is indeed quite reasonable for such a premium service. The cheaper alternative is to rent carpark space in condominiums, which also has some level of security.

Car services in Malaysia like regular car servicing, tyre change, car repair and wash are generally cheaper there as well so definitely a plus point. The onus would be on you to find a good and reputable workshop that you personally trust. Why? Because you are subjected to the laws and culture of the land, not the usual Singaporean mindset may work.

The grass is indeed greener on the other side..

Additionally, due to the strict laws in Singapore, the car modifying culture has diminished significantly over the years. For car enthusiasts, this deal gets sweeter. Malaysia’s vehicle modification regulations are more relaxed, allowing for engine swaps, performance tuning, and body kits that would be tightly restricted — or outright banned — in Singapore. Plus, Sepang International Circuit readily available to test drive your beautiful creation, owning your dream car in Malaysia may just be a game changer.

Closing Thoughts

The growing trend of Singaporeans owning cars in Johor Bahru is more than a cost-cutting tactic — it’s a reflection of shifting values, lifestyle aspirations, and the search for freedom on the open road. For decades, the Singapore car dream was defined by COEs, road taxes, and status. Today, it’s being reimagined just across the causeway, where space is plentiful, regulations are friendlier, and luxury feels attainable.

With attractive financial incentives and the flexibility to indulge in passions like car modifications or track days, the pull is strong. Yet, this option isn’t without its complexities. Legal restrictions, cross-border insurance issues, and the logistics of accessibility mean prospective owners must do more than just crunch numbers — they need to plan ahead and manage the risks.

At its core, this movement speaks to something universal: the desire for mobility, independence, and the joy of driving. Whether it’s a weekend supercar, a family MPV, or a project car that would never pass Singapore’s strict rules, Johor Bahru is fast becoming an extension of the Singapore car scene.

So if you’re considering joining this wave, do your homework, drive responsibly, and embrace the adventure — because the dream of the open road doesn’t end at the checkpoint. It just begins a little further north.

Till then, stay safe and happy driving!

@ngaihong_sp