Singapore now a more expensive place than Hong
Kong
Singapore is now ranked the second most expensive place in Asia
after Tokyo with Hong Kong in third position.
In UBS’ Prices and Earnings 2009 study released on Thursday,
Singapore is ranked 24th globally, in a comparison of
living costs in 73 cities around the world. The study was
based on data collected between March and April this year.
It found that while Tokyo is a more expensive place than
Singapore, its employees are paid more than two times the salaries
of those in Singapore.
The relentless influx of foreigners is one key reason
for the high inflation rate which hit a record high of 6.7% last
year.
Besides competing with the locals for the limited jobs
available, foreigners also help to depress their wages. The median
wage of the lower income group has declined during the last decade
which has witnessed robust GDP growth.
The high cost of living is a primary concern of most
Singaporeans, but was not even addressed by the Prime Minister
during his National Day Rally.
The Good and Service Tax (GST) was raised to 7% in
2006 to “help the poor”, according to the Prime
Minister then. The Minister in the Prime
Minister’s Office Lim Hwee Hua is adamant that there will be no GST
cuts even if the economy were to worsen subsequently.
Ordinary Singaporeans will again bear the brunt of the
inflation, with price increases noted in living necessities, public
transport, services and public housing.
The government has done little to alleviate the concerns on the
ground other than reassuring the populace of the many schemes
available to help them. However, one must be reduced to almost
“destitute” status to qualify for cash handouts from the state.
The middle class, which earns between $2,000 and $5,000 monthly
will have to tighten their belts in anticipation for further hike
in prices in the months ahead.
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