Singapore is known for its high cost of living, from soaring rental prices to pricey vehicles. But how much does one need to earn to live comfortably
Singapore is known for its high cost of living, from soaring rental prices to pricey vehicles. But how much does one need to earn to live comfortably here? Opinions vary widely, with some believing a $3,000 salary is sufficient, while others argue that $20,000 is necessary.
In a street interview conducted by Asian Boss on June 23, several individuals strolling along Orchard Road shared their views on the cost of living in Singapore. The interviewees began by disclosing their monthly salaries. One media executive mentioned he earns about $3,000, while a woman in human resources reported a salary exceeding $5,000. A brand manager from a restaurant indicated he makes less than $4,000, describing that amount as “just enough to survive.”
Cost of Living Insights
Living in Singapore comes with its challenges; alcohol can cost double what it does in other countries, and a taxi ride can easily set you back $40. “Everything is expensive,” one interviewee remarked humorously. Another woman shared that she rents a room for $1,800 monthly, highlighting the stark contrast in living costs compared to neighboring countries. “A small flat here could get you a larger one there,” she explained.
So, what is the ideal salary for a comfortable life in Singapore? One woman suggested $7,500, though she didn’t elaborate. Conversely, another interviewee believed a salary of “$20,000 to $30,000 per month would be good,” considering rising costs and aspirations like owning a car or a house.
Family Considerations
Opinions varied based on family situations. One woman stated that a person with a family would need about $5,000, whereas for someone living alone, $3,000 might suffice. “There are people who make $1,000 and they survive,” she pointed out, emphasizing that it ultimately depends on individual financial management.
The Financial Struggle
According to 2021 data from the World Bank, Singapore ranks eighth in the world for offering high average salaries. However, the perception that all Singaporeans are thriving financially may not be accurate. “It’s a struggle to get by in Singapore,” one interviewee commented, countering the notion that everyone is doing well. Another added that many Singaporeans experience financial difficulties, despite international perceptions of wealth.
A man noted that even though Singapore’s average salary is “quite high,” the gap between the highest and lowest earners is significant, making income inequality a pressing issue. “The cost of living is obviously going up, and as a result, those on the lower end of the income bracket find it increasingly difficult to manage day to day,” he explained.
Singapore’s Expensive Living Conditions
A recent report revealed that for the first time, Singapore has surpassed cities like Hong Kong, London, and New York to become the most expensive city for goods and services for affluent individuals. According to Julius Baer’s Global Wealth and Lifestyle report, cars and essential health insurance are 133% and 109% more expensive than the global average, respectively, among the 12 consumer goods and eight services reflecting the spending habits of high-net-worth individuals.
Additionally, high demand for accommodation and limited school places contribute to the elevated cost of living. Singapore’s core inflation rose by 4.7% year-on-year in May, although it is expected to moderate in the second half of 2023 as imported costs decrease and the tight domestic labor market eases.
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