SINGAPORE: Former presidential candidate Tan Kin Lian apparently wanted to debunk the popular notion that Singaporeans are better off than Malaysians. He argued that the cost of living is higher in Singapore.
In a social media post earlier this week, Mr Tan, who had served as chief executive officer of National Trades Union Congress (NTUC) Income between 1977 and 2007, wrote that “many Singaporeans think that they are better off than Malaysians” due to the big disparity in monthly salaries.
Singaporeans earn “say S$3,000 while the Malaysians earn RM3,000, and the SGD is more than three times higher than RM,” he added.
This view, Mr Tan wrote, overlooks the important factor of the cost of living, including housing and car ownership, which is substantially higher in Singapore, one of the most expensive cities in the world. He added that Singaporeans’ disposable income for food could only be 20% of their salaries, or S$600.
In Malaysia, meanwhile, housing and car ownership are considerably less expensive, leaving them with a higher disposable income to pay for food, which Mr Tan believes is 40%.
The former NTUC Income chief also pointed out that food is less expensive in Malaysia than in Singapore, saying that a meal that costs RM12 in Malaysia will cost more than its equivalent in Singapore dollars. Instead of costing Singaporeans S$3.50, it could cost as much as S$8.
“After allowing for the lower disposable income, the Singaporean is likely to struggle with the cost of food, in the same way that the Malaysians have to struggle with higher costs,” wrote Mr Tan. He added a caveat, however, that this was his observation and he could be wrong.
His post has since been widely shared and commented on, although not everyone agreed with his observations.
“Dollar to dollar comparison, the cost of living is higher in Malaysia, isn’t it?” asked one Facebook user.
“If we compare KL median housing prices, it is higher than the median HDB, in term of median income, the median income in KL is MYR4.2k , SG is S$5.5k. The only thing they can compete is car prices, but that’s the best part of SG, you don’t even need a car in SG for many in Singapore. Our public transport is world-class,” pointed out another.
A Malaysian working and living in Singapore wrote, “SG is a lot cheaper, even with housing. I bought a BTO (build to order), which is cheap, but I do not own a car here. Chicken rice costs S$5 here, RM12 in Malaysia, not S$8. My disposable income is a lot higher, but my quality of life is definitely lower, with a small house without condo facilities and no car… waste a lot of time travelling.”
Another Malaysian wrote that, on average, Singaporeans and Malaysians spend the same on housing, and transportation can cost more in Malaysia, depending on location. In places such as Kuala Lumpur, it can be even more expensive than in Singapore.
In addition, while Malaysian food may be cheaper, at around 60% to 80% of the cost in Singapore, the cost of groceries may be the same.
Morever, they pointed out that Malaysians also face the risk of their vehicles getting destroyed in floods, which have become more common, “and insurance will not cover it.”
The commenter added that the purchasing power of the Singapore dollar “allows more Singaporeans to be less impacted by price hikes compared to neighbouring citizens”. /TISG