Singapore: Is it really the most expensive place to live?

[SGMCF328]

Are prices in Singapore going up and what is the Government doing about it?

https://www.gov.sg/article/singapore-is-it-really-the-most-expensive-place-to-live

Singapore was ranked the second most expensive city in the world by the Economist Intelligence Unit (EIU) in its Worldwide Cost of Living 2021 survey. In its ranking published on 1 December 2021, Singapore was tied in second place with Paris, up from fourth position in the previous year.

However, the EIU’s findings may not reflect the cost of living of Singaporean households and here are the reasons why.

First, the composition of items in the EIU consumption basket is different from the typical consumption pattern of Singaporean households.

The EIU survey is designed to enable Human Resource managers around the world to calculate cost-of-living allowances and put together compensation packages for expatriates and business travellers. The EIU consumption basket is not based on the typical consumption pattern of Singaporean households and is therefore not a good gauge of cost of living for Singaporean households.

For instance, the EIU consumption basket includes items such as international foreign daily newspapers that tend to be more expensive than what Singaporean households typically consume like local newspapers.

A more representative indicator of cost of living in Singapore is the Consumer Price Index (CPI), which measures the average change in the prices of a basket of goods and services commonly purchased by Singaporean households.

Second, the EIU survey findings were compiled by comparing the prices of goods and services across countries and converting them from their local currencies to US dollars. This means that the rankings are sensitive to currency fluctuations.

However, currency fluctuations have less impact on the cost of living of Singaporeans who earn their income in Singapore dollars.

Are prices in Singapore going up?

Nevertheless, like many economies around the world, Singapore is seeing higher inflation lately. Inflation in recent months has been driven by both external and domestic drivers.

How have prices in Singapore changed over time?

Based on the CPI, prices rose by 2.9% between July and November 2021, compared to 1.5% in the first half of 2021. This follows from a 0.2% decline in prices in 2020.

You can access more information on the CPI from the Singapore Department of Statistics’ website here.

How is the Government helping Singaporeans to manage rising costs?

1.  Manage domestic supply-side constraints. This includes managing the supply of industrial and commercial space, to help moderate business cost increases and reduce the knock-on impact on consumer prices. During the COVID-19 pandemic, the Government has also disbursed rental relief and implemented schemes such as the Wage Credit Scheme, Jobs Support Scheme and Jobs Growth Incentive Scheme to help businesses cope with costs.

2. Promote competition in markets so that Singaporeans can enjoy competitive prices. This includes lowering barriers to entry, where possible. It also entails diversifying the sources of supply, including for food, to prevent sharp price increases in the event of disruptions.

3. Shift towards an appreciating path for the trade-weighted Singapore dollar (the Singapore dollar nominal effective exchange rate or S$NEER). A stronger Singapore dollar helps to mitigate imported inflation and temper domestic cost, to ensure price stability over the medium term.

4. Implement community support programmes. The Government has worked with cooperatives such as NTUC FairPrice on programmes to help Singaporeans cope with higher prices for daily necessities.

In addition, Singaporeans can tap on these support schemes:

• GST Voucher - For eligible Singaporeans aged 21 and above. This includes cash payouts, MediSave top-up and U-Save rebates for utilities.
• Grocery Voucher - For eligible Singaporeans aged 21 and above living in 1- and 2-room HDB flats. This is to support household expenses.
• ComCare Assistance - Targeted support for low-income households. This includes cash assistance for basic living expenses, assistance with household and medical bills, as well as employment assistance and referrals for other forms of support.

 

 

 

[Victor68]

It is not if you slave yourself till you drop dead to cover the basic needs. What they can do is to conduct a survey for an average household to understand their lifestyle for Monday to Sunday over a year. I bet 90% are doing the same not between family but throughout the year.

Then they look at the top 10% of the population and make a comparison. Where is the gaps and why. Would the bottom section every enjoy anything near that top? Just for housing, they are in debt for 30 years. 

[Thaiyotakamli]

I would say partially

 

housing for bto still quite affordable

education free

healthcare hugely subsidised

makan got hawker

transport generally cheap

income tax pretty low

 

 

things expensive are car, condo, country club, tuition

 

and the average wage still low compared to hk and japan

[kobayashiGT]

13 minutes ago, SGMCF328 said:

Are prices in Singapore going up and what is the Government doing about it?

https://www.gov.sg/article/singapore-is-it-really-the-most-expensive-place-to-live

Singapore was ranked the second most expensive city in the world by the Economist Intelligence Unit (EIU) in its Worldwide Cost of Living 2021 survey. In its ranking published on 1 December 2021, Singapore was tied in second place with Paris, up from fourth position in the previous year.

However, the EIU’s findings may not reflect the cost of living of Singaporean households and here are the reasons why.

First, the composition of items in the EIU consumption basket is different from the typical consumption pattern of Singaporean households.

The EIU survey is designed to enable Human Resource managers around the world to calculate cost-of-living allowances and put together compensation packages for expatriates and business travellers. The EIU consumption basket is not based on the typical consumption pattern of Singaporean households and is therefore not a good gauge of cost of living for Singaporean households.

For instance, the EIU consumption basket includes items such as international foreign daily newspapers that tend to be more expensive than what Singaporean households typically consume like local newspapers.

A more representative indicator of cost of living in Singapore is the Consumer Price Index (CPI), which measures the average change in the prices of a basket of goods and services commonly purchased by Singaporean households.

Second, the EIU survey findings were compiled by comparing the prices of goods and services across countries and converting them from their local currencies to US dollars. This means that the rankings are sensitive to currency fluctuations.

However, currency fluctuations have less impact on the cost of living of Singaporeans who earn their income in Singapore dollars.

Are prices in Singapore going up?

Nevertheless, like many economies around the world, Singapore is seeing higher inflation lately. Inflation in recent months has been driven by both external and domestic drivers.

How have prices in Singapore changed over time?

Based on the CPI, prices rose by 2.9% between July and November 2021, compared to 1.5% in the first half of 2021. This follows from a 0.2% decline in prices in 2020.

You can access more information on the CPI from the Singapore Department of Statistics’ website here.

How is the Government helping Singaporeans to manage rising costs?

1.  Manage domestic supply-side constraints. This includes managing the supply of industrial and commercial space, to help moderate business cost increases and reduce the knock-on impact on consumer prices. During the COVID-19 pandemic, the Government has also disbursed rental relief and implemented schemes such as the Wage Credit Scheme, Jobs Support Scheme and Jobs Growth Incentive Scheme to help businesses cope with costs.

2. Promote competition in markets so that Singaporeans can enjoy competitive prices. This includes lowering barriers to entry, where possible. It also entails diversifying the sources of supply, including for food, to prevent sharp price increases in the event of disruptions.

3. Shift towards an appreciating path for the trade-weighted Singapore dollar (the Singapore dollar nominal effective exchange rate or S$NEER). A stronger Singapore dollar helps to mitigate imported inflation and temper domestic cost, to ensure price stability over the medium term.

4. Implement community support programmes. The Government has worked with cooperatives such as NTUC FairPrice on programmes to help Singaporeans cope with higher prices for daily necessities.

In addition, Singaporeans can tap on these support schemes:

• GST Voucher - For eligible Singaporeans aged 21 and above. This includes cash payouts, MediSave top-up and U-Save rebates for utilities.
• Grocery Voucher - For eligible Singaporeans aged 21 and above living in 1- and 2-room HDB flats. This is to support household expenses.
• ComCare Assistance - Targeted support for low-income households. This includes cash assistance for basic living expenses, assistance with household and medical bills, as well as employment assistance and referrals for other forms of support.

 

 

 

they forgot to mention the raise of the GPU and mobile phone also.

Now one 3080ti is like $2,700.

A iphone 13 pro also cost 1,600 liao.

Shag mama ah. hahahah

[Victor68]

2 minutes ago, Thaiyotakamli said:

I would say partially

 

housing for bto still quite affordable

education free

healthcare hugely subsidised

makan got hawker

transport generally cheap

income tax pretty low

 

 

things expensive are car, condo, country club, tuition

 

and the average wage still low compared to hk and japan

Where are the bto? Why is waiting time more than 4 years? Cannot predict the population? How come HDB becomes investment? Who are paying for these inflated prices in the resale market? Is this a healthy trend we like to see for our future generations? Are we going towards HK housing? 

For those that wish to live in high living, we should leave them alone.  Housing is a big issue today, very badly managed.

[Playtime]

13 minutes ago, Victor68 said:

Where are the bto? Why is waiting time more than 4 years? Cannot predict the population? How come HDB becomes investment? Who are paying for these inflated prices in the resale market? Is this a healthy trend we like to see for our future generations? Are we going towards HK housing? 

 

i dont know.... you asked the right question that must never be asked... we already have the world most expensive politicians by far handling it for decades, maybe, just maybe.... if we pay them even more they may solve it 🤣

[Victor68]

1 minute ago, Playtime said:

i dont know.... you asked the right question that must never be asked... we already have the world most expensive politicians by far handling it for decades, maybe, just maybe.... if we pay them even more they may solve it 🤣

We have scholars daily thinking how to do biz with their citizens and make money instead of how to do biz with other countries. It is like you gambling with your children and you be the banker. 

[Beregond]

5 minutes ago, Victor68 said:

We have scholars daily thinking how to do biz with their citizens and make money instead of how to do biz with other countries. It is like you gambling with your children and you be the banker. 

its exactly like what u say , everything is business. every business that can make money , gov put 2 legs in. 

[Meanmachine]

To the average citizens, Yes, to the below average, definitely 

And to the affordable , not an issue, if the come across a product that is one of the goal to get it- thy would go for it.

Particularly during the Covid-19, whereby lock-in down were inevitable, citizens can't go anywhere plus the salary thy have on hand needs to be spent, just look at how G support Hotels, F&B establishments alone are 2 key areas where money were splurged lavishly. this was evidently so ppl don't care how/where to spent and won't question why the prices shot-up suddenly. We understand why the call to support such key fundamentals on job creation as the economy will have knee jerk reaction if no tourist come in later. There is certainly a shift in paradigm in a person mindset

Few months later, Aviation, Hoteliers and several local places like ARTSCIENCE MUSEUM, MBS-Staycation, Garden by the Bay took place rapidly causing a rush for citizens to use the Rediscovery voucher to entice locals to visit . . . we saw a rise in bicycles & foldies sale going on rampage demands and of course COE took a turn for the worse despite demands for fast sport cars was on the rise, I don't remb seeing so many Porsches and Maseratis on the road. Many Mercs and Teslas too and property new launches sold like hot cross buns . . .

When one eat in Rest, we don't complain on the price, we merely pay for it, while it's Foodcourt or Coffeeshop, we can choose to eat there or elsewhere, the coffee / Tea prices hovering $1.10-1.30cts remains stable or the norm . . . to our Asian neighbours, Singapore is very expensive place to visit, let alone stay here.

[Arogab]

I am Singaporean and I don't find it expensive, in fact I spend more overseas cos a lot of time, I do not do much local (I mean I cannot live like a local Thai when I am in Thailand and not like a local Chinese although sometime I very Chinese. Haha)

I save more when I am in Singapore, even though sometimes I am back, I so generous with my family and close friends. 

Overall, be glad we are Singaporean and of cos, some of those Zheng Hu stuffs just let them go check one another or even voice it when you don't like it. Make it Singaporean way.

[miniF55]

I often read on cyberspace people want us as a country to increase pay of the lower rung of our society, but when their favourite hawker stall increase by 10 cents to cover increased cost, one will hear complaints to no end.

The cost of housing I agree is a real thing. When I bought my first flat some 25 years ago, I chose a far away place that is within my budget and was available for selection. When I met the MOP, I also hope the price of my flat had gone up as much as possible so that I can move closer to my parents. I am greedy and am quite sure everyone is. 

 

[MafiaGeek]

I think in general those who do not have at least household income of 2500 per household member are suffering.

[Ingenius]

Singapore is very affordable, you just have to live within your means. 

[inlinesix]

2 hours ago, Victor68 said:

Where are the bto? Why is waiting time more than 4 years? Cannot predict the population? How come HDB becomes investment? Who are paying for these inflated prices in the resale market? Is this a healthy trend we like to see for our future generations? Are we going towards HK housing? 

For those that wish to live in high living, we should leave them alone.  Housing is a big issue today, very badly managed.

BTO => Got order than build.  Of course, it will take a long time to build now without CECA.

With a 200k downpayment for a $1m unit, it is "affordable" for a couple who has worked for 10 years after graduation

or mama papa loan lor.

Make sure you have money to lend your kids when the time comes.

Unlike HK, we will increase the loan tenure to maintain the "affordability".

 

 

[Spidey10]

1 hour ago, Victor68 said:

We have scholars daily thinking how to do biz with their citizens and make money instead of how to do biz with other countries. It is like you gambling with your children and you be the banker. 

and when children dun listen...and investigate until hang till die!! dun die, hang again and again....🤣

[Spidey10]

2 minutes ago, inlinesix said:

BTO => Got order than build.  Of course, it will take a long time to build now without CECA.

With a 200k downpayment for a $1m unit, it is "affordable" for a couple who has worked for 10 years after graduation

5

$200k after 10 yrs....you missed something, meaning no vacation, no car, no MIL & FIL to support, no pets, no high class restaurant, dun fall sick, no hobbies ....anymore to add...🤣

[Spidey10]

1 hour ago, Arogab said:

I am Singaporean and I don't find it expensive, in fact I spend more overseas cos a lot of time, I do not do much local (I mean I cannot live like a local Thai when I am in Thailand and not like a local Chinese although sometime I very Chinese. Haha)

I save more when I am in Singapore, even though sometimes I am back, I so generous with my family and close friends. 

Overall, be glad we are Singaporean and of cos, some of those Zheng Hu stuffs just let them go check one another or even voice it when you don't like it. Make it Singaporean way.

sshhh.....please ah...after zheng fu read this no good eh...

[inlinesix]

2 minutes ago, Spidey10 said:

$200k after 10 yrs....you missed something, meaning no vacation, no car, no MIL & FIL to support, no pets, no high class restaurant, dun fall sick, no hobbies ....anymore to add...🤣

$200k/couple.

$20k/couple/annum

CPF + Cash.

Cannot?