Poll: 37.3% need S$9,000 a month in expensive Singapore
In recent years, Singapore has consistently ranked as one of the most expensive cities in the world to live in, a status that has drawn both admiration for its economic prowess and concerns over the affordability of daily life.
According to a recent poll by Answers.sg, nearly 40% of more than 5,000 respondents felt that they need a monthly income of at least S$9,000 to make ends meet in the city-state.
To put this in perspective, the median gross monthly income of Singaporean employees was around S$5,197 in 2023, meaning that the S$9,000 target is significantly higher than the national average.
This statistic has sparked a broader conversation about the rising costs of living in Singapore and whether the city state is becoming increasingly unaffordable, even for its middle-income residents.
Rising costs make Singapore expensive
Singapore’s cost of living has been rising steadily over the past few decades.
While this is partly due to the country’s success in becoming a global financial hub, it has also brought about challenges for ordinary citizens.
With some essentials like food, groceries and transport becoming more expensive, the notion of needing S$9,000 a month is not as outlandish as it may seem, especially for a family unit.
In fact, a study in 2021 revealed that a couple with two children aged seven to 18 will need at least S$6,426 a month to meet their household’s basic needs.
Thus, the 37.3% of poll respondents that indicated a salary of S$9,000 a month as the bare minimum may not be too far off the mark.
On this Little Red Dot, the burden of expensive housing and the unseen costs of transportation are putting considerable pressure on its residents.
Burden of expensive housing in Singapore
A large portion of household income in Singapore is often allocated to paying for rent or mortgage.
According to the Singapore Department of Statistics, households spent about 30% of their monthly income on housing and related expenditure in 2017/18.
This is a significant portion of income that leaves little room for other expenses, such as personal savings, education, and leisure.
With real estate prices continuing to rise, many people also find it increasingly difficult to buy their own homes or rent properties that are within their means.
This has led some to explore alternative options that balance affordability with practicality.
Public housing remains a viable option, as 31-year-old Alex Tsui shared with MS News: “I think public housing in Singapore is relatively accessible for Singaporeans in terms of pricing. There are different options that cater to different levels of affordability, albeit at the expense of certain things like size and location.”
However, the limitations of public housing mean that it’s not always the ideal choice for everyone.
Source: PxHere
Despite the availability of Government-subsidised Housing and Development Board (HDB) flats, the private housing market continues to be expensive, particularly in prime districts such as nine, 10 and 11.
Moreover, new urban developments and infrastructure projects often drive up the cost of living, especially in high-demand areas such as the Central Business District (CBD) and Marina Bay.
For middle-class families, the prospect of owning a home in these prime locations may seem increasingly out of reach, contributing to a sense of economic insecurity.
Transportation: an unseen expense
The sky-high cost of private car ownership in Singapore is also noteworthy.
A Certificate of Entitlement (COE), which is required to own a car in Singapore, can cost hundreds of thousands of dollars, and that’s just the beginning.
The price of a car, together with taxes, insurance, fuel, and maintenance, can easily amount to an additional S$1,000 or more per month, making it extremely expensive to drive in Singapore.
Senior IT manager Elton Wong, 40, and father of two young children, aged three and five, shared with MS News: “It’s just too expensive. It is not advisable to own a car in Singapore unless you really need it. For my family, we decided to get a Mitsubishi Eclipse Cross as it is easier to chauffeur our two kids around for school and extra classes.”
Source: PxHere
For families who rely heavily on cars to get around, this adds a significant financial burden to their monthly budget.
Even with public transportation, which remains a more affordable alternative, many Singaporeans still find it challenging to balance their commuting costs with other financial commitments, particularly with the increasing cost of living in general.
Strain on middle income families
What’s particularly interesting about the poll’s findings is that it could be a cry for help from middle income families.
A nuclear family — consisting of two parents and their children — may find it difficult to live comfortably in Singapore on a monthly salary that’s below the S$9,000 threshold.
Apart from the housing costs mentioned earlier, they also have to shoulder the costs of education, healthcare, and daily expenses, just to name a few.
Source: MS News
Private tuition, which is a common supplement to public education here in Singapore, can easily add up to several hundred dollars or more per month, per child, per subject, depending on the child’s academic performance.
Similarly, while public healthcare in Singapore is relatively affordable, out-of-pocket medical expenses and insurance premiums can be a significant financial drain for families with young children and elderly parents.
Mr Wong’s wife, Serene Wu, 40, told MS News: “It really depends on your circumstance, the number of co-dependents you have and personal definition of needs versus wants.”
“As a mother of two, I choose to compromise on my own lifestyle so my children can have a better quality of life,” added Ms Wu, who is currently in between jobs.
“Sometimes, it’s about learning to live within your means, making calculated decisions and evaluating them as you go along.”
Growing concern for younger generations
A particularly concerning aspect of the poll results is the impact on younger generations.
Millennials and Gen Zs, who are just starting out in their careers, may find it increasingly difficult to establish financial independence in a city where the cost of living outpaces wage growth.
Many young people may struggle to save up for their own homes or even start families due to the financial constraints they may face in Singapore.
Source: TheSmartLocal
Furthermore, with the increasing reliance on gig economy jobs and contract work, many younger Singaporeans may lack the job stability and benefits that come with permanent, full-time positions.
This job insecurity, coupled with rising costs, means that younger generations may have a harder time achieving a similar standard of living as their parents.
For many, the question of how much one needs to ‘survive’ in Singapore becomes not just a practical concern but also a reflection of shifting expectations and definitions of what it means to live a fulfilling life in the city-state.
When presented with the poll results, Mr Tsui, who’s a digital content executive, was visibly surprised and disagreed with the nearly 40% of respondents.
“S$9,000 a month to survive?! I must be dying then. You definitely do not need to be earning S$9,000 a month to survive in Singapore,” he said.
“If we really needed that to survive, the majority of people here would be living in poverty. I feel like some people might be confusing ‘live comfortably with certain luxuries’ versus ‘surviving’,” he continued.
Affordable living a challenge
While it is clear that the cost of living in Singapore has risen over the years, the challenge now lies in whether the city-state can continue to balance its role as a global economic hub with the needs of its residents.
Striking this balance will be crucial in ensuring long-term sustainability and quality of life.
Government policies aimed at controlling housing prices and improving social welfare programs may offer some respite, but the financial pressures faced by many residents are unlikely to ease overnight.
In this climate, Singaporeans will need to adapt to an ever-changing economic landscape, one where achieving financial security may require a much higher income bracket than ever before.
Given these challenges, it’s understandable why some Singaporeans might consider moving across the causeway to escape an expensive Singapore.
However, for others, the focus remains on finding ways to thrive within the city by carefully managing expectations and finances.
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Featured image adapted from Pxhere.
