Incorporate in Singapore
In general, prices for basic necessities such as food, clothing, public transport, basic education and utilities in Singapore are quite moderate. Public transport and taxis are very affordable as well. On the other hand, housing, private schooling and maintaining an automobile can be costly. If you are an expatriate whose compensation package includes benefits such as transportation or car allowances, housing, childcare, payment of school fees, entertainment allowances and other work-related benefits, these costs would be less of a concern to you and you will find that life in Singapore can be quite comfortable. Even if you do not have an extensive package, you can always find something that fits your budget; for every category, Singapore offers a wide range of available choices and prices.
Cost of Accommodation
Condos/Apartments
Most expats in Singapore live in private condominiums for a number of good reasons such as availability of facilities (swimming pools, tennis courts, playgrounds for children, secure access, etc.), socializing with fellows expats and affordability when compared to detached houses. The rental prices for private condos can vary greatly depending on the location and quality of the condo. A 3-bedroom walk-up or condo apartment with the size of around 1200 square feet close to the city-centre can fetch a monthly rent of anywhere between S$3,000 to S$6,500.
If you are on a tight budget, living in a government housing flat (called HDB flats) is a very reasonable option; more than 80% of the local Singaporeans live in such accommodations. A 3-bedroom HDB flat costs from S$1,000 to S$2,500 per month in suburban neighborhoods and up to S$4,800 in prime estates.
Paying Guest
Rent for a room in a private apartment in prime districts such as East Coast, River Valley and Chinatown costs approximately S$800 – S$1,500. Monthly room rental in an HDB flat will cost as low as S$275 in suburban neighbourhoods such as Tampines and Pasir Ris and as high as S$1,200 in central Singapore.
Detached Houses
Due to Singapore’s relatively small land size and large population, detached houses are no longer very common in Singapore. Most of the people in Singapore live in high-rise buildings. Consequently, as a result of short supply, detached house prices and rentals can be quite high. Rental for a detached house spanning more than 4000 square feet can vary between S$6,500 to S$16,000 per month depending on the location and quality of the property. Higher-end detached houses in Singapore are called bungalows and usually include a swimming pool, garden and an average of 3 – 4 bedrooms.
COST OF FOOD
Food is relatively cheap in Singapore. However, as elsewhere, food expenses depend on how extravagant you are. An expatriate family living in Singapore can scrimp on their food budget if they cook on their own as often as possible. On the other hand, several international cuisines are available in a range of restaurants but they may prove to be on quite harmful for you budget since restaurant prices are rather high in Singapore. Food expenses can either be a marginal factor or a significant factor when calculating your average living costs depending on the lifestyle you choose to adopt in Singapore.
Eating In
If you cook at home, your average monthly personal food costs should come up to only about S$200 per person for basic meat and vegetables. For a couple eating in, average monthly food cost can range around S$400 – S$800 depending on their eating choices.
Eating Out
One of the unique features of living in Singapore is the abundance of hawker centres and food courts that offer a wide variety of dishes, and are commonly air-conditioned. An average daily lunch at a hawker centers can be as low as S$4 whereas at a food court you can have lunch for about S$5 – S$6. A meal at fast food places such as McDonalds will cost you around S$7, while a drink at Starbucks is around S$5 – S$6. A visit to to an average restaurant can set you back by S$20 – S$40 per person for basic meals. In summary, with breakfast and dinner at home, lunch outside at food courts, plus basic weekend outings, the monthly food budget in Singapore can run around S$600 – S$1000 for an average budget-conscious couple.
TRANSPORTATION COSTS
Public Transportation
Singapore has one of the best, most comprehensive, and least expensive public transport systems in the world. A one-way average bus or MRT (Mass Rapid Transit) fare is about S$1.60. If you combine bus and MRT transports, it will cost you S$100 a month on the average. A couple that travels regularly within Singapore, using MRT or bus, will need to set aside a monthly combined transportation budget of roughly S$300 as part of their Singapore living costs.
Taxi Service
Taxi service in Singapore is one of the most efficient worldwide. You can hail a cab on the road or call their number (S$2.50 – $4 extra) to book a service. Taxi drivers are willing to cover even the shortest of distances. Taxi fare starts at S$2.80 – S$3.20 for the first mile. During peak hours (weekday mornings 7:00am – 9:30am and evenings through Saturdays 5pm – 8pm), you will incur extra charges of about 35% of the fare.
Private Car
In contrast to inexpensive public transportation and taxi service options, owning a private car in Singapore can be a rather expensive luxury due to heavy government taxes on this mode of transportation. The government aims to reduce heavy road congestion and air pollution. Therefore, it encourages the average person living in Singapore to use public transportation instead.
A brand new Japanese or European model can easily fetch upwards of S$90,000. For example, a brand new Honda Accord costs around S$165,000. Second-hand cars are cheaper, but still come with a hefty price tag. For example, a used Honda Accord can fetch up to S$63,800. In Singapore, the Compulsory Certificate of Entitlement (COE) is required before you can own a car. The COE is a mechanism used by the government to limit the number of automobiles on the road. As of August 2011, COEs are priced at S$49,301 for vehicles under 1600cc and $65,521 for those above 1600cc. In the face of such steep prices, many expatriates have opted for car rental arrangements that range from about S$1,000 to S$1,800 a month, depending on the vehicle’s model and mileage. Also, with a fairly recent regulatory amendment, rented vehicles are now permitted to drive into Malaysia on weekends.
Automobile fuel is called petrol (instead of “gas” or “gasoline”) in Singapore. It is measured in liters. A liter of petrol can range from S$1.50 to S$2.09.
Parking your car in the city will cost you from S$2.00 per hour. On the average, you will spend about S$400 a month for petrol, toll charges, and parking, and about S$400 – S$800 yearly for maintenance. Singapore is a very small place with excellent public transportation services (both air-conditioned); therefore, there is absolutely no necessity for owning a car unlike most other countries in the world. However, if your work requires extensive city travel during the day, you might think about buying or renting a car. Owning a private car will add significantly to your average living costs in Singapore.
COST OF HEALTHCARE
Healthcare system in Singapore was ranked best in Asia and sixth best in the world by the World Health Organization in 2000. The system is cost effective and offers state-of-the-art medical treatment that boasts of high success rates. The system has stringent government-mandated guidelines for transparency, excellence, safety and cleanliness. However, there is no government mandate for employers to provide health insurance to its employees.
As a general practice, health insurance benefits are not provided by majority of the employers in Singapore. If your compensation package includes medical insurance, this is a non-issue for you. Even if your employer does not provide health insurance, the cost of medical services in Singapore is reasonable. You don’t need any insurance to cover your day-to-day healthcare needs and can set aside a monthly budget of S$100 – S$200 for this end. A typical consultation fee at a general practitioner is S$40. However, you should purchase insurance that covers surgery and hospitalization. Such insurance will add up to about S$2,000 – S$3,000 per year.
Utilities
Monthly gas, water and electricity bill may range from a low of S$200 to a high of S$600 a month, depending on your air-conditioning usage. Mobile phone subscription costs anywhere between S$50 to S$200 per month. A broadband internet connection at home will cost you around S$50 per month. For cable TV connection you can estimate about S$28 for the basic channel subscription and S$50 for the expanded subscription. You have a wide choice of international channels including familiar channels such as CNN, BBC, Discovery, HBO, Disney, ESPN, and many more. Your TV should have a PAL system, and your home should have a cable-ready connection. A deposit of S$250 is required of foreigners for obtaining a cable connection. StarHub’s (the cable company) offering for Digital TV has further improved the choices for programs. The company’s Demand TV offers a choice of 10 movies at any given time for a cost of S$4.50 per movie. You need a digital set-up box from StarHub to use this service.
COST OF CHILDREN’S EDUCATION
As a working Expat in Singapore, you have the choice of sending your child to a government or private school. Government schools are also called local public schools while private schools are also called International schools. Education standards in Singapore are very high and you can’t go wrong with either one of the two. A local school will follow a curriculum as approved by the Ministry of Education whereas an international school will follow a curriculum that’s more widely accepted internationally such as the well-known International Baccalaureate (IB) high school diploma. One of the key advantage of local school education in Singapore is that it is very affordable. In contrast, sending a child to an international school can cost anywhere between S$1000 – S$2000 per month.
Local Government Schools
Primary school totals 6 years. There are 4 years of secondary school leading to the GCE O Level exams or 5 years for the GCE N Level exams. Children of expatriates residing in Singapore on employment passes can be admitted to local schools. It should be noted however that local schools are attended by children of Singaporeans and Permanent Residents. The monthly cost of sending your child to a local school in Singapore w.e.f 2012 will be S$246 – S$356 for primary education, S$341 – $486 for secondary education and S$552 – S$772 for junior college education.
International Schools
International, American, British, Canadian, Dutch, German, Japanese, and Swiss are some of the international schools present in Singapore. The estimated yearly fees range broadly from S$8,000 to S$19,000. School bus fare expenses amount to an estimated S$1,500 – S$2,000 a year.
DOMESTIC HELP
You can hire a live-in domestic helper in Singapore through maid agencies. Most of the live-in domestic helpers are recruited by maid agencies from approved neighboring countries such as the Philippines, Indonesia, Myanmar and Sri Lanka. The average monthly cost of keeping a live-in maid would come to around S$600 – S$800, inclusive of your helper’s salary and government levy. As the term “live-in” implies, you also have to provide accommodation and food for the maid.
MISCELLANEOUS
Electronics and appliances in Singapore are relatively inexpensive. A typical PC sells around S$1800, while a regular laptop at about S$1000. You can buy a TV for anywhere between S$1000 – S$10,000 depending on your personal desires. A movie ticket sells for around S$8.50, and a copy of local newspaper will cost you about S$1.00.
SUMMARY
Choices are abound in Singapore. By and large, the cost of living in Singapore is kinder to those who know how to manage their financial resources, and keep a regular paying job. For a couple with one school-age child and one working adult, the following can be a useful rule of thumb guideline: If your take home salary for the family is less than S$4,000 per month, your living standard would be modest and resemble the following:
- Rent an HDB flat
- Use mostly public transportation and occasional taxi
- Send your child to local school
- Mostly home cooking and occasional eating out
With a take home of about S$6,000 -S$7,000, you should be able to upgrade yourself to renting a private condo outside the central district area and hire a maid, with rest of the choice remaining the same. If you take home around S$10,000 per month, you can add international school education for your child to the menu, and use taxi as your primary transport mode. In the S$15,000 range, you can afford a condo in the central district area, send your child to an international school, and use a taxi as your primary transport mode. If budget is not limited, you can rent a bungalow, buy a high-end car, provide an international school education for your child, hire more than one maid, eat out regularly and take frequent vacations.
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