Is Singapore Too Expensive? Uncovering the Real Cost of Living in 2024

Welcome to Singapore, a city known for its efficiency, innovation, and unfortunately, its sky-high cost of living. According to the Economist Intelligence Unit’s (EIU) Worldwide Cost of Living survey, Singapore has once again earned the title of the world’s most expensive city—a position it has held nine times in the past eleven years. While this accolade is hardly one to celebrate, it highlights a reality that both residents and expats must navigate.

From record-breaking car prices to the high cost of fine dining, Singapore sets the standard in many cost-related categories. But what does this mean for you? Whether you’re a young professional starting your career or an expat considering a move, understanding the financial landscape of Singapore is crucial.

Despite the availability of affordable meals in hawker centers, other living expenses in Singapore—such as housing, education, and transportation—are among the highest in the world. This is largely due to the country’s limited land and natural resources, driving dependency on imports and foreign labor to sustain its rapidly growing population.

As costs continue to climb, this guide will help you navigate the realities of living in Singapore in 2024, offering insights into how to manage your budget across different lifestyles and income levels.

Debunking world’s most expensive city

When discussing the cost of living in Singapore, it’s important to recognize that international surveys like the Economist Intelligence Unit's (EIU) Worldwide Cost of Living (WCOL) survey may not fully reflect the reality for locals. The EIU’s consumption basket includes items like brand-name raincoats and foreign newspapers—products that aren’t typical purchases for most Singaporeans. 

As a result, the survey might not be the most accurate indicator of living costs in Singapore. The Consumer Price Index (CPI), which tracks price changes in goods and services commonly bought by Singaporean households, offers a more relevant measure.

Moreover, the EIU rankings are influenced by currency fluctuations, with Singapore’s strong dollar pushing it higher on the list compared to cities with weaker currencies. However, this doesn’t necessarily mean higher costs for residents earning in Singapore dollars. In fact, a strong currency can reduce the cost of imports, helping to keep local prices more stable.

As for price trends in Singapore, like many countries, Singapore has faced rising food and energy costs due to global factors. However, inflation in Singapore has been on a downward trend, easing from 5.5% in January 2023 to 2.5% in July 2024. While there are still risks of inflation from global shocks, the government is closely monitoring the situation and has implemented measures to help households manage these rising costs.

Source: CNA

Essentials: Singapore vs. Global Metropolises

How does Singapore measure up when it comes to the cost of living compared to bustling metropolises like London and New York? From daily necessities to lifestyle expenses, we explore how the Lion City stacks up. By adopting local habits and smart strategies, you can make your money stretch further while enjoying all that Singapore has to offer.

Common expenses for dining and groceries

Singapore finds itself somewhere between affordability and premium pricing compared to other major cities. While a simple meal at an inexpensive venue costs significantly more than in regional neighbours like Bangkok and Kuala Lumpur, it's still more affordable than dining in London or New York. 

Here’s a breakdown of how the Lion City stacks up against other global cities when it comes to common expenses.

Source: Numbeo at the time of writing

Most expensive place to own a car but inexpensive public transportation

Owning a car in Singapore is widely considered a luxury due to the high associated costs, such as the Certificate of Entitlement (COE), road taxes, insurance, and parking fees. These factors make Singapore one of the most expensive places in the world to own a car. To provide a broader perspective, here’s a comparison of the additional monthly car running costs in various cities, including Singapore:

Source: Numbeo and Honda at the time of writing

Fuel expenditure alone makes Singapore one of the most expensive places in the world to own a vehicle. When other additional costs such as seasonal parking, car insurance, road tax, and maintenance are added, the total becomes much more expensive. 

Source: Smartwealth

On the other hand, public transportation is both affordable and highly efficient. The well-developed network of buses, MRT (Mass Rapid Transit), and taxis offers a practical alternative to car ownership, helping residents avoid the high costs associated with maintaining a vehicle.

Source: TransitLink

Housing costs have surged but varied greatly

Singapore tops the charts for rental prices in the Asia-Pacific region, with median monthly rent reaching around S$3,455. The spike in rents from 2022 to 2023 can be attributed to an influx of expatriates and a new government policy that has slowed down the home-buying process.

While rental prices fluctuate across different districts, one general tip remains: moving further along the MRT line can help reduce costs. 

To provide a clearer picture, here is a comparison of the monthly rental costs for a single-bedroom apartment in the city center across various cities. 

Source: Numbeo at the time of writing

Renting vs. buying in singapore: which makes sense for you?

In Singapore, most expatriates opt for renting over buying due to high property prices and eligibility restrictions. However, renting isn’t always a bargain, and whether you rent or buy depends on a range of factors—from your housing preferences to financial situation.

When renting, the first step is to decide between public HDB flats, which are more affordable but basic, and private condominiums, which come with higher price tags but more luxurious amenities. If you're looking to save on rent, living further from the city center can significantly reduce costs, and sharing a unit is another option to cut expenses.

Buying, on the other hand, presents its own challenges. The type of property you’re eligible to purchase depends heavily on your residential status. While Singaporeans have the most flexibility, Permanent Residents (PRs) and foreigners face more restrictions, particularly when it comes to public housing. 

However, if you're ready for a long-term commitment and can navigate the eligibility requirements, purchasing could be a more strategic move—especially in a property market known for its stability.

Healthcare costs

Singapore’s healthcare system is renowned for its efficiency and quality, with both public and private sectors offering a wide range of services. For citizens and permanent residents, government programs like MediSave provide subsidies that help to lower healthcare expenses. However, for those without access to these subsidies, such as foreigners, medical costs can be significantly higher.

Singapore’s public healthcare system follows a tiered pricing structure. Citizens benefit from the most affordable rates, permanent residents pay slightly more, and foreigners incur the highest fees. Private healthcare costs, on the other hand, vary across providers, with the Ministry of Health offering a bill benchmark tool to help estimate the cost of different treatments.

Source: SGH at the time of writing

Education costs in Singapore

Singapore’s education system is recognized globally for its excellence, consistently ranking at the top in international assessments like the Programme for International Student Assessment (PISA). In the 2022 PISA results, Singapore stood out as a leader in maths, reading, and science, reflecting the country's strong emphasis on academic rigour.

With a structured approach, education in Singapore is divided into primary, secondary, pre-university, and tertiary levels, offering multiple pathways and streaming options to meet the diverse abilities and interests of students.

Public schools

In Singapore, public schools are heavily subsidised by the government, making education more affordable compared to many countries around the world. The Ministry of Education (MOE) regulates school fees annually, and the cost varies depending on the school type, the student's education level, and citizenship status. 

For Singaporean citizens, public school fees are significantly lower, with further subsidies easing the financial burden. However, permanent residents (PRs) and international students face higher fees, especially those from non-ASEAN countries.

Source: MOE (fees from 2024 - 2026 - except for Pre-uni at 2024 only)

The Ministry of Education provides a fee calculator to help parents estimate costs for primary and secondary education.

Private schools

With more than 65 international schools, Singapore offers a broad range of educational options for expatriate families and locals seeking alternative curricula. These schools cater to a global student body, providing three primary education systems: the AP (Advanced Placement) system, the IB (International Baccalaureate) system, and the English national system. In addition, other curricula, such as the Montessori program and those from various countries, are also offered, with many schools blending different approaches to meet diverse educational needs.

One of the key benefits of private schools is their smaller class sizes, which allow for more personalised instruction. Teachers can tailor their approaches to meet the individual learning styles and needs of each student, helping to enhance academic performance. 

In addition to academics, private schools offer a wide variety of extracurricular activities, from sports and music to drama and community service, giving students ample opportunities to develop talents and interests beyond the classroom.

According to a 2023 survey by the International Schools Database, the majority of private schools in Singapore charge between $5,500 and $20,000 annually for primary education. For secondary education, the fees typically start at $21,000 and can go significantly higher depending on the school's reputation and facilities. 

On top of tuition, additional costs include application fees (up to $1,000), registration fees (up to $4,000), uniforms, textbooks, and extracurricular activities.

International School Fees Comparison Across Cities

Singapore's international school fees position the city-state as one of the more expensive options in Asia. With annual costs ranging from $15,900 to $50,200, Singapore's fees are higher than those in Kuala Lumpur and Bangkok but are comparable to cities like Hong Kong and Tokyo. Globally, while Singapore is less expensive than New York and London—which top the charts with the highest fees—it remains in the mid-to-high range when compared to other major cities. 

Higher education costs in Singapore

With the National University of Singapore (NUS) and Nanyang Technological University (NTU) consistently ranked among the top 20 in the QS World University Rankings, the country's universities are highly regarded for their academic excellence and global recognition, making them a prime destination for higher education.

The cost of attending a Singaporean university varies depending on the program and institution. Tuition fees for Singaporean citizens are heavily subsidised by the government while permanent residents (PRs) and international students pay more, with international students generally paying double or more than local students. Fees for specialised programs like medicine and law however are generally higher.

All undergraduate programmes except Law, Medicine, Renaissance Engineering Programme, Music subsided annual tuition fees

Source: Individual university website at the time of writing

*non-subsidised rate

What to do with high cost of living

While the costs and statistics outlined above may seem overwhelming, there are ways to manage expenses effectively in Singapore. 

For locals, government subsidies and grants can alleviate some of the financial burden, while making mindful lifestyle choices—such as opting for public transport over car ownership—can further reduce costs. Foreigners, who face a higher cost of living without access to subsidies, should carefully evaluate their financial situation before relocating. 

Whether you're a local or an expat, a well-planned budget is key to keeping expenses manageable in Singapore. Additionally, making use of wealth management tool like StashAway can help grow your cash and keep savings optimised. A well-planned budget, alongside smart financial tools, will make managing your finances in Singapore more feasible.