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Singapore, often dubbed as a global financial hub and one of Asia's most dynamic cities, is renowned for its high quality of life. However, this quality comes at a price. The cost of living in Singapore is among the highest in the world, and understanding these costs is crucial for anyone planning to move or live here. In this blog, we’ll delve into how expensive living in Singapore truly is, comparing it to other cities in Asia and around the globe and just why it may not be as expensive as you think it is.
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1. Global Perspective: Singapore vs. The World

Singapore consistently ranks as one of the most expensive cities worldwide. Singapore's cost of living index is higher than that of many major cities across the globe. In fact, Singapore currently ranks 18th in the world, placing it ahead of cities like Sydney, Paris, and Tokyo. This high ranking is due to the elevated costs in various categories, including housing, transportation, and food.
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For instance, a standard one-bedroom apartment in the central can cost between SGD 3,000 to SGD 5,000 per month. In comparison, similar accommodations in cities like Kuala lumpur  might only set you back SGD 550 (RM 1600) to SGD 1200(RM3500).This significant disparity highlights just how costly housing in Singapore can be. 85% of surveyors to agree that rental price are too high in Singapore. However, stretching only 734KM and being financially savvy, it is not difficult to find a room rental at around 800 SGD.
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Although Singapore is often portrayed as the land of 'Crazy Rich Asians,' the reality is that it accommodates families from all income levels. The city offers a wide range of affordable food and amenities, proving that not everything is as expensive as it seems. Let's dive into what makes living in Singapore more accessible than perceived.

2. Comparing Costs in Asia

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Within Asia, Singapore stands out as the second most expensive city, trailing only behind Hong Kong. The cost of living in Singapore is notably higher than in other major Asian cities such as Tokyo, Seoul, and Shanghai. For example, while dining at a mid-range restaurant in Singapore might cost you around SGD 60 for two people, the same meal in Bangkok would be approximately SGD 30. However, Singapore food culture is bustling with many different kind of food of different price range. It is unlikely for a foreigner who is new to Singapore to only be dining in a restaurant. More often than not, you will find yourself with the thousands of locals in a local coffee shop or hawker center where a full meal will set you back to no more than SGD 10 per meal. Do you know the cheapest Michelin starred meal can be found in Singapore for only $8. With many delicious option to choose from at an affordable price, it is no wonder Singapore is coined as a multicultural food paradise.
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Transportation costs also differ significantly. A monthly public transport pass in Singapore costs around SGD 128, while in cities like Kuala Lumpur, it costs as little as SGD 40. Despite being a well-connected and efficient system, the price tag for mobility in Singapore is considerably higher than in neighbouring countries. However, the price in Singapore is not high without its merit. Being a small country, owning a car is not necessary unlike in other bigger countries. Moreover, many people instead opt for public transport. Singapore see a daily average of 7.2 million public transport riders a day. Singapore's public transport system is ranked as one of the world's best for its careful planning and thought out structure. With the upcoming MRT Thomson-East coast line opening, Singapore's public transport system is going to get even more interconnected and convenient for riders.

Singapore do not skim when it comes to improving connectivity and increasing intervals for their bus intervals. Just recently, it is announced that Singapore will invest over 900 million to increase bus connectivity. With such a robust and well thought out public transport system, only 35% of Singaporeans owns a car.

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3. Key Expenses in Singapore

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• Housing: Housing is by far the largest expense in Singapore. Whether you're renting or buying, prices are steep. As mentioned earlier, a one-bedroom apartment in the central can cost between SGD 3,000 to SGD 5,000. If you're looking for something more spacious, a three-bedroom apartment could range from SGD 6,000 to SGD 10,000 or more, depending on the location. This steep price has caused many young adults to abandon their aspiration of renting a place in Singapore. However, by being financially savvy and being willing to stay with roommates, the cost for rental drops to around 800 SGD a month. In Singapore, a 4 room HDB can be rented out to a maximum of 8 people. This means, you do not have to pay the entire rental on your own as the cost can be split evenly with other housemates. This came at an opportune time as HDB has relaxed their maximum occupancy tenants in 2024.

• Utilities: Utility costs, including electricity, heating, cooling, water, and garbage, for an 85m2 apartment can amount to around SGD 200 to SGD 300 per month. However, this cost usually is already factored into your rental cost.

• Food: Dining out in Singapore varies greatly depending on where you go. Most meals at a hawker center or food court could cost SGD 10, while a three-course meal for two at a mid-range restaurant might set you back SGD 60 to SGD 100.

• Education: If you have children, education costs are another major consideration. International schools in Singapore can be very expensive, with annual fees ranging from SGD 20,000 to SGD 50,000 or more. It is due to the high cost, most foreigner works in Singapore and remit their wages back to their family. However, by working in Singapore for an extended period and continuously upgrading your skill sets, you can improve your chances of upgrading your work pass and potentially converting it to Singapore Permanent Residency (PR). Additionally, you may benefit from subsidized education for your kids future education.

• Healthcare: While Singapore boasts excellent healthcare, it comes at a price. A visit to a general practitioner can cost around SGD 50 to SGD 100, and specialist consultations can be significantly higher. Although the price seems high, Foreigners are still able to buy medical insurance with a Permanent resident status.

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4. Is Singapore Worth the price tag?

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Despite the high costs, many people find living in Singapore to be worth every dollar. The city-state offers a safe, clean, and highly efficient environment. Additionally, Singapore's strategic location in Asia, coupled with its excellent infrastructure and global connectivity, makes it an attractive place for expatriates and locals alike.
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Moreover, as the world’s most competitive economy, Singapore presents many career opportunities for locals and foreigners. With one of the world’s lowest tax rate, it makes Singapore an attractive location to work at. With different type of work pass available, Singapore is accommodating skilled workers of all levels.
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Despite Singapore's high cost of living, many foreigners are drawn to the city-state for its higher salaries. With a financially savvy mindset, careful spending, and low tax rates, they often find themselves with a net positive income. The higher earnings, combined with smart financial management, allow many to not only cover their expenses but also save and invest for the future, making Singapore an attractive destination despite the initial cost concerns.
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Depending on your Educational level and certified skill, getting a job in Singapore will definitely be a financial upgrade for you and your family as compared to working in your home country. Singapore has one of the highest average salary in Asia and in the world. Find out how you can upskill and upgrade your Educational Qualifications to set yourself up for a career upgrade.

It is essential to plan your finances carefully and be prepared for the high costs associated with living in this vibrant city. By understanding the various expenses and comparing them to those in other cities around the world and Asia, you can better assess whether Singapore is the right place for you.
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Conclusion
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Living in Singapore is undeniably expensive, but the lifestyle it offers is unmatched. Whether you're considering relocating or simply curious about how Singapore compares to other cities, it's evident that this city-state is among the priciest in Asia and the world. To fully enjoy all that Singapore has to offer, careful planning and budgeting are key to ensuring that high costs don't overshadow its rewards. Despite the expenses, many Malaysians, Filipinos, and migrant workers from less developed countries eagerly seize the chance to work here due to the city’s high earning potential. With smart budgeting and living within your means, Singapore can be a wonderful place to live and work, with the higher income you earn in a strong currency undoubtedly transforming your life and that of your family.

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‍Disclaimer: All information provided is accurate as of 2024 and is intended for informational purposes only. Information and data may change after this date, and readers are encouraged to verify the accuracy and relevance of the information independently before making any decisions. The content provided by Kenneth & Co. does not constitute professional advice from the government, and readers are advised to consult with qualified professionals for specific guidance tailored to their individual circumstances. Kenneth & Co. disclaims any liability for any harm, loss, or inconvenience caused by the use of the information provided.