Singapore: The World’s Most Expensive City
Cost of Living Comparison: Singapore vs. Tokyo
The Economist Intelligence Unit (EIU) has ranked Singapore as the world’s most expensive city to live in, dethroning Tokyo, which now sits in sixth place behind Paris, Oslo, Zurich, and Sydney. The EIU’s survey considers factors such as currency exchange rates, taxes, food prices, and transportation costs to help companies and individuals assess the financial implications of relocating to different countries.
Singapore’s high cost of living is partly attributed to its strict regulations on car ownership. Residents must obtain a Certificate of Entitlement, which is very expensive, in addition to paying road taxes and registration fees. These costs are factored into the city’s transportation score by the EIU. According to the BBC, Singapore is also the world’s most expensive place to buy clothes.
Global Cost of Living Trends
Asian cities generally have higher grocery shopping costs, with Tokyo remaining the most expensive location for everyday food items. However, European cities tend to be more expensive for recreation and entertainment, possibly due to a higher premium on discretionary income.
In contrast, Mumbai offers the best value for money in terms of cost of living. Other affordable locations include New Delhi, Karachi, and Kathmandu in Nepal. The civil war and collapse of the Syrian pound have also made Damascus one of the world’s cheapest cities.
Factors Contributing to Singapore’s High Cost of Living
- Car ownership restrictions: Singapore’s Certificate of Entitlement and other fees make car ownership very expensive.
- Transportation costs: Road taxes and registration fees further contribute to the high cost of transportation.
- Food prices: Singapore’s imported food items can be expensive.
- Taxes: Taxes on goods and services can add to the cost of living.
- Currency exchange rates: Singapore’s strong currency makes it more expensive for foreigners to live there.
Affordable Alternatives to Singapore
While Singapore may be the most expensive city in the world, there are many more affordable options available. Mumbai, New Delhi, Karachi, and Kathmandu offer a lower cost of living while still providing a high quality of life.
Conclusion
Singapore’s high cost of living is a result of a combination of factors, including car ownership restrictions, transportation costs, and imported food items. However, there are many more affordable cities around the world that offer a similar or even better quality of life.
