Singapore, known as one of Asia’s major financial centers, is consistently ranked as the world’s most expensive city by the Worldwide Cost of Living survey from the Economist Intelligence Unit, having held this title for nine out of the past 11 years. However, this contrasts with the International Monetary Fund’s (IMF) Per Capita Income estimates, which suggest that Singapore’s cost of living is an astounding 33.9% lower than the cost of living in the United States.
The discrepancy between these two estimates can be explained by the fact that Singapore is expensive for expat business people who live in fashionable central neighborhoods, own private cars, and have memberships in golf clubs. For the average Singaporean living outside of these areas and not owning a car, the cost of living is relatively reasonable.
One major factor contributing to Singapore’s high cost of living is the cost of owning a car. The certificate of entitlement (COE) that every car owner must purchase averages $75,000 for a sedan, excluding the cost of the car, road tax, fuel, and insurance. This high cost of car ownership is a significant contributor to Singapore’s ranking as the most expensive city in the EIU survey.
However, Singapore’s compact size and efficient public transport infrastructure make car ownership unnecessary for many residents. Affordable alternatives such as rental services and taxis are readily available, making transportation costs relatively low compared to larger cities where driving long distances is common.
In summary, while Singapore is indeed an expensive city for certain groups of people, particularly expats living in central neighborhoods and owning cars, the cost of living for the average Singaporean is relatively reasonable. The cost of living in Singapore is subjective and depends on factors such as lifestyle, consumption preferences, and location.
