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Expat getting interviewed in Singapore.

SINGAPORE: Singapore is often praised for its high quality of life and robust economy, however, it also ranks as one of the most expensive cities globally. This raises an important question for expats: Do expats earn enough to live comfortably in Singapore?

In a street interview by the Asian Boss titled “How Much Do Foreigners in Singapore Earn?,” expats shared a wide gap in their earnings.

Expats’ salaries in Singapore can vary greatly depending on the job sector and position. A professional in reinsurance from Australia reported making over S$10,000 a month. In stark contrast, domestic helpers, who play a crucial role in many households, typically earn around S$800 to S$1,150 monthly, including allowances.

A software engineer for an AI company who recently faced a layoff shared that his previous monthly salary was S$8,600. Another software engineer working in the financial services industry reported earning approximately S$250,000 to S$300,000 a year.

Singapore vs home

One managing director of a British-American firm manufacturing office accessories in China shared that he doesn’t earn more in Singapore compared to Germany, but said that living in Singapore was a choice.

According to him, “I based my choice on my experience when I lived here from 1993 till the year 2000 in a similar job but different company and I find the quality of life so much higher here than in any other country where I’ve lived,” noting he lived in other parts of Asia and the Middle East.

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“I’m 57 so I have lived in certain places already in my life so Singapore is doing a great job when it comes to quality of life even though the cost of living is one of the highest here in the world,” he added.

Another who teaches at Nanyang Technology (NTU) and alternates between Singapore and California shares he earns over S$10,000. He noted that he would be earning more back home.

Similarly, an oil and gas trader shared that although he might earn more in the same position in the United States compared to Singapore, “it’s difficult to say” due to the taxes in the United States and Singapore’s high living expenses, so he noted it’s a breakeven.

Meanwhile, domestic helpers shared that their earnings in Singapore, although low, were higher than what they would make back home.

Financial challenges in Singapore

Singapore’s high cost of living is a significant challenge. Rent can consume over 30% of an individual’s salary, and many expats, including high earners, find this challenging.

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One shared that he pays S$6,000 per month on rent, comparable to expenses in his place in California, noting that Singapore’s overall high living costs required careful budgeting.

Another finds that dual incomes are essential for a comfortable life in Singapore, as combining incomes with a working spouse makes it easier to manage expenses, especially with children in school. According to him, “it’s what makes life livable” in Singapore.

Domestic helpers often send a significant portion of their earnings back home to support their families, leaving them with only S$100 to S$200. Some resort to borrowing from family abroad to manage their finances.

Despite the high costs, Singapore offers benefits such as safety, excellent public services, and a vibrant international community. Expats appreciate the clean, advanced infrastructure, reliable public transport, and the ease of accessing a variety of goods from around the world.

But, how much do you need to earn to “live comfortably” in Singapore?

Living in Singapore can be financially demanding, but the overall experience is often seen as worthwhile by expats.

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With a chance to enjoy a high quality of life, good healthcare, education, and safety, many appreciate the cultural diversity and the ease of travelling to nearby Southeast Asian countries.

According to one expat, living a “comfortable lifestyle” in Singapore usually requires earning at least S$10,000 every month, while another said a million dollars would do it.

Another noted that although he had not thought of how much it would cost to live a comfortable life in Singapore, he noted, “It’s one of those situations where the sky’s the limit. I mean you can talk to the richest people in the world and they’ll probably still say, I wish I were making more.”

While the cost of living in Singapore is high, many foreigners find their salaries adequate, or as one noted, “workable,” with chances to earn more once you work hard. /TISG

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