We have come along way since independence, generally salary has risen over the years, but so does cost of living. My opinion is just try to spend within our means and be contended with our current camera gear (resist the BBB virus, easier said than done :bsmilie
The report will probably not affect how we live in Singapore but is useful for businesses and government decision makers and for those considering to migrate to Singapore in comparison to other countries, one of multiple factors.
What happen if one day Singapore become the world least expensive city (Currently Mumbai)?
Thanks edutilos for sharing the link.
To add on -
You can download the summary here by quickly registering (relatively straightforward process):
http://www.eiu.com/public/thankyou_download.aspx?activity=download&campaignid=Wcol2013
The summary is still very skimpy. Unfortunately it costs USD995 from what I can see to access the full report. Otherwise I'd be happy to read more about how it is determined. Such cost of living comparisons often make a lot of assumptions. Some interesting points though, from that summary -
a) As mentioned in some of the reports on this, EIU has caveated that the strong Singapore currency is a major factor. The post I linked earlier also mentioned this. That said, of course there has also been "solid price inflation", i.e. before currency appreciation comes into play.
b) The summary states that "the cost-of-living index uses an identical set of weights that is internationally based and not geared toward the spending pattern of any specific nationality." Delving further into the details, we can see the weights used on the following page and also the methodology:
http://www.worldwidecostofliving.com/asp/wcol_HelpIndexCalc.asp
To highlight, in descending order the top 4 key contributors to the overall index are: Shopping Basket (not sure what this includes but I think we can safely assume it's a general basket of goods) 25%, Transportation 19.5%, Recreation and entertainment 18%, Clothing 13%. I chose the top 4 because they are in the double digit range. The summary of the report mentions that the COE policy in Singapore skews the results such that transport costs here are
three times that of New York City (here's NYC's public transport fare for ref:
http://www.mta.info/metrocard/mcgtreng.htm#730refill ). Depending on whether you view a car as a necessity, each person's personal experience will vary. I don't drive, so..
c) Said summary also mentions that "Singapore is the priciest place in the world in which to buy clothes", and "proliferation of expensive malls and boutiques on Orchard Road (Singapore’s retail hub) import luxury European brands to satisfy a wealthy and fashion conscious consumer base.". Once again, I'm not sure whether all of you wear luxury European brand clothing, or how much of this obviously high-end clothing (and exorbitant cost) factors into the clothing contribution within the index.
EIU itself states here:
http://www.worldwidecostofliving.com/asp/wcol_HelpWhatIsWCOL.asp that the report "enables
human resources line managers and expatriate executives to compare the cost of living in over 130 cities in nearly 90 countries and calculate fair compensation policies for relocating employees."
Definitely Singapore is not a cheap place to stay in, but it is worth keeping the above in mind beyond just reading the headlines.
Cheers!
