Cost Of Living In Singapore
Food, education and utilities make up a large chunk of monthly expenses. With prices on the rise, the family of five try to live within their means.They do not have a car or a helper at home. To save money, Ms Guay and her husband make use of cashback reward apps and have recently switched to an electricity retailer that offers them a 10 per cent discount on their monthly utilities bill.Expenses remain manageable and with appropriate budgeting, the family is able to afford a few small luxuries, like an overseas vacation. But further down the road, Ms Guay can’t help but wonder if she will have enough to last through retirement.One of her worries is 'unpredictable' healthcare bills.
“We don't know how much we’ll need when we're older. Will we be able to retire comfortably? Will our savings be enough?”She added: “It’s likely that we’ll continue working for at least the next two decades. Even after my child completes university, we still need to continue saving for retirement and other living expenses.' Ms Guay is not alone and her litany of concerns is likely shared by many Singaporeans who are worried about the high cost of living here, particularly on the back of rising electricity tariffs and water prices.Coupled with the announcement of an, the issue of living costs regained traction last year – so much so that Prime Minister Lee Hsien Loong centred his on it.“They sense that they have to spend more, that their earnings never seem quite enough,” Mr Lee said last August as he acknowledged some of this ground sentiment. 'What did you learn today, kiddo?'
(Art: Chern Ling)Second, food.Experts' calculations based on official data showed food prices up by about 10 per cent since 2013.The reasons are two-fold. For one, Singapore imports more than 90 per cent of the food consumed by its population, hence prices are easily swayed by adverse weather and geopolitical tensions elsewhere that affect supply chains, explained Dr Tan.DOS data showed varying price increases for household essentials, such as rice and eggs, over the years.A 5kg packet of fragrant Thai rice, for example, cost S$13.06 last year but S$12.78 in 2013. One will also have to pay 10 per cent more for a box of 10 eggs, which rose to S$2.14 last year from five years ago.For food services, higher rentals and labour costs, as well as water and electricity bills, have made dining out more expensive. This is “unavoidable” as food operators, especially stall owners at food courts and hawker centres, face rising business costs, said economist Jeff Ng.Echoing that, economist Walter Theseira from the Singapore University of Social Sciences said: “While there are calls (for the Government) to control food prices, we need to remember that the majority of Singaporeans employed in providing low-cost food are themselves low to medium-wage workers.”“It’s not reasonable in my view to ask the hawker to bear the burden for keeping prices low,” he added. Third, healthcare.Amid a greying population, healthcare inflation has gone up by about 8.5 per cent since 2013, based on experts’ calculations of official data.
Of which, the cost of seeking medical and dental treatment rose about 10.6 per cent over the same period.“As Singapore’s population ages, demand will only get stronger yet it is not easy to increase supply given the long training periods required for quality medical workers,” said Dr Tan.“This is an area that isn’t easily contained so healthcare prices could keep going up. Although Singapore's standard of healthcare is among the best in the world, a severe organ shortage continues to limit patients' access to optimal treatment.
The sandwiched generation looking after both their children and ageing parents are concerned with healthcare and education costs.A third reason is that the cost of living has risen on account of changing lifestyles.Pointing to the quality of life improving with economic growth and technological progress, Mr Lee said people eat out more and vacations have become more common.Things that were once considered luxury items or did not even exist, such as air-conditioners and mobile phones, have also become daily necessities, he added. 'Our standards of living have gone up. This is a positive development, because it means our lives have improved. However, to sustain this higher quality of life, people are spending more than before, and this can put pressure on households,' he said.The fourth reason is inflation, which has led to price increases.Mr Lee highlighted four groups who may feel the pinch more: those whose wages have stagnated amid an overall rise in wages, those who fear losing their jobs as the economy transforms, those who are already jobless, and retirees who no longer have income and are living off their savings. 'When prices increase, they feel as if 'their wallets have shrunk',' he said.Delving specifically into the rise in utilities prices, Mr Lee said while the Government has tried to keep inflation low, 'we cannot completely prevent prices from increasing'.This is so especially for electricity tariffs, since Singapore generates electricity with imported natural gas, which is priced based on global oil prices. To fix electricity tariffs would thus require costly subsidies that are unsustainable, and will also end up benefiting the wealthy more since they consume more electricity.Instead, the most effective way to help low-and middle-income households with utilities bills is via U-Save rebates for families in Housing Board flats, he added.
Cost Of Living In Singapore Vs Los Angeles
'I hope people will understand that we have adopted the best approach to lessen the burden of Singaporeans.' While cost of living is a perennial concern, the issue has gained traction recently with increases in water and electricity prices kicking in.Mr Lee assured Singaporeans the Government looks closely at the three major expenditure items - housing, healthcare and education - that people worry most about.' We will make sure (they) are affordable, so that Singaporeans do not have to worry about them.' He also urged Singaporeans to do their part by making small changes - 'save water, save electricity, and at the same time, shop around for the best prices, and be a smart consumer'.Specifically, he cited mobile phones, infant milk formula and hawker centres to give tips on how people can save on phone bills, bringing up their children and food.He urged people to watch their data usage on their mobile phones, advised parents that expensive formula milk is not always the best, and pledged to build more hawker centres with affordable food options that cost $3 or less. The Government will build 13 more hawker centres in the coming years.' While the Government will do its part to alleviate people's cost of living concerns, each of us also has a responsibility to 'look after our own wallets',' he said.