Monday, May 16, 2016

Cost of Living - Malaysia vs Singapore

To date, Malaysia’s average monthly disposable salary is RM3,505 (US$869.10) while Singapore’s is S$4,152 (US$3,028.38). The bad news is, Malaysians do not only earn less than their neighbours across the causeway, the weaker Ringgit currency compared to the US dollar (with an exchange rate of roughly 3.9 versus the Singapore dollar’s 1.36 at this point in writing) also means that imported goods that are sold in Malaysia often cost more in the Ringgit quantum. via iMoney.my
There’s a really nice Infographics posted in iMoney on the monthly expenses incur by working professionals in both Malaysia and Singapore. The Infographics gives a nice pictorial and will be useful for Malaysians thinking of moving to Singapore.
The Infographics ended by saying that:
You need S$8218 to maintain the same standard of living as RM9,500 in Kuala Lumpur, assuming both are renting.
I believe that this conclusion is very key to many Malaysians. If we chose to go to Singapore, naturally, we will be renting a place to stay. And by renting, it doesn’t sound like Singapore is going to be cheap for you. This is especially true if you already at the tail end of settling your mortgage loan, which means you will have a house you don’t need to bear the burden of monthly instalment in Malaysia. By going to Singapore, you will have that rental amount to pay for. The Infographic listed a S$2,000 monthly rental for a 1 bedroom apartment outside the city centre. OMG!
Recently, I have a few colleagues who found a job (in the same company) in Singapore and they moved their family there. One big question that is always on my mind is how much do they pay an experienced worker? Both my colleagues told me that it is roughly 70% of what you get in Malaysia. That means, if you earned RM10,000 today, moving to a similar position in Singapore will get you S$7,000. Which sounds pretty good because that’s RM21,000 after currency conversion! (S$1 is RM2.90 now). But don’t forget, he’s gonna rent an apartment for his family of 2 kids and a wife. And rental is around S$3,000 or more. That left S$4,000. He said that he’s currently not a PR, and that PR is a bit challenged now because of the control and so his children’s education in Singapore is very expensive - going to be like an expat. Probably that takes another S$1,000 cut for 2 kids education. That is why his wife has to look for a job as well, otherwise, it’s unsustainable.
While it’s not a bed of roses, there are still many who wanted to start a life in Singapore. The main reason is that Malaysia has degenerated into a shit hole of slump in the past 5 years, which such a corrupted administrations, super high cost of living and a host of safety concerns. Going to Singapore may be tough at first, but you do get a peace of mind and soul.
What are your thoughts?

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