SINGAPORE: Singapore has again been named the world’s most expensive city, according to Julius Baer’s The Global Wealth and Lifestyle Report 2024.
This recognition has raised concerns among residents, with one Singaporean asking, “What about the struggling middle class?” highlighting the financial strain on the middle class, who face rising living costs amidst the city’s attraction to the ultra-wealthy.
The city-state has also been noted as the priciest location globally for car ownership. Singapore’s reputation for political and economic stability and its business-friendly environment continue to draw affluent individuals from around the world.
The report shows that the average price of luxury goods in Singapore has remained almost unchanged year-on-year, with a drop of 0.46 per cent in local currency terms and an increase of 0.8 per cent in US dollar terms.
Additionally, inflation levels have stayed steady across 2023 at 4.8 per cent.
Julius Baer’s index ranks the 25 most expensive cities in the world from November 2023 to March 2024, based on an analysis of residential property, cars, business-class flights, and other luxuries for people with at least US$1 million (S$1.35 million) in investable assets.
This year, prices for goods have grown faster (5 per cent) than services (4 per cent).
Despite these rising costs, the ultra-wealthy continue to spend more, especially on hotels, high-end meals, fashion, and accessories.
In 2024, premium consumer items such as fashion and jewellery saw the highest price increases at 9.6 per cent, mainly due to higher prices for raw materials, energy, and manpower.
Interestingly, the price of bicycles has decreased significantly globally, by 6.4 per cent. On a smaller scale, business class flights have dropped by 1.7 per cent, and whisky costs have decreased by 1 per cent.
Amidst these figures of luxury, many Singaporeans are voicing concerns about their struggles.
One user lamented, “Sometimes I really wonder if the world will pan its cameras to the rest of the island and see the struggling middle class with ever-escalating costs, while the burgeoning millionaire class revel in luxury.”
Another Singaporean pointed out the alarming income disparities within the middle-income salaried class, saying, “Our income gaps even among the middle-income salaried class are alarmingly high.”
The disparity is felt more acutely as the cost of living continues to rise. Basic necessities, housing, and transportation become increasingly expensive, making it hard for the middle class to keep up.
“If this is the most expensive city for the ultra-rich, imagine how the average Singaporean is trying to survive and make ends meet,” said another resident.
In a report from Mercer’s 2024 cost-of-living data, Singapore, along with Hong Kong and Zurich, also ranks as one of the costliest cities for international workers.
Factors such as expensive housing markets, high transportation costs, and the high cost of goods and services contribute to these high living expenses.
Despite the economic growth and stability that attract wealthy individuals, these factors create significant challenges for many Singaporeans.
A Singaporean voice on social media urged, “Every picture doesn’t tell the story… interview the minority who don’t have a voice please.” /TISG
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