SINGAPORE: Singapore has a cost of living index of 85.9, which is considerably higher than other cities in the region, making it the most expensive in Southeast Asia, a new report has shown.
The report from ROSHI, a Singapore-based fintech company, says that property and rental costs have increased significantly in the city-state.
The average price of an HDB rental flat is now at $532,768, while private houses fetch an average price of $2,080,533, and condominiums cost around $1,100,000. Rental costs, meanwhile, have also increased, with an average of about $2,600 monthly.
ROSHI’s Cost of Living In Singapore and South East Asia Insights Report 2024 shows that in comparison, Indonesia’s cost of living index, the lowest in the region, is 31.2, followed by the Philippines, 34.0. In Malaysia, Singapore’s nearest neighbour, the cost of living index is 35.0.
A number of key factors contribute to the high cost of living in the Little Red Dot, including limited land and advanced infrastructure, a strong economy, high wages, a stable currency, and its status as a global financial hub, which makes it attractive to multinational corporations and wealthy expatriates.
“Additionally, Singapore’s stringent import regulations and high-quality education and healthcare systems contribute to elevated living expenses,” ROSHI noted.
It adds that high living costs do not directly correlate to quality of life, given that numerous factors are responsible for living standards in every country.
The company estimates the cost of a four-year college program in Singapore to be $38,250, with higher education in the city-state increasing by almost 74.7 per cent in the past two decades.
Although the cost of living in Singapore has increased, the quality of life in Singapore has also risen simultaneously, largely due to an uptick of more than 40 per cent in yearly income in the last ten years.
However, Singaporeans may need to shell out more to ensure an efficient healthcare system. ROSHI said that Singaporeans may expect to pay more for insurance premiums in the future. Premiums have gone up by 35.4 per cent since 2021.
Amir Nada, ROSHI’s founder, noted, “While Singapore maintains its reputation for high quality of life, our analysis reveals that many residents face increasing financial pressures due to rising costs across multiple sectors.
However, it’s important to note that these costs are often offset by higher incomes and government support measures.” /TISG
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