Singapore's Cost of Living & Relocation Options in 2025

The soaring cost of living in Singapore has become a pressing concern for many residents, exemplified by a 35-year-old Singaporean man earning S$100,000 annually who is contemplating relocating his family to Malaysia. His feelings of being "jaded" with life in Singapore, coupled with concerns about the education system’s impact on his three children, reflect a broader trend among some Singaporeans seeking relief from financial and lifestyle pressures. According to recent data, Singapore’s cost of living index stands at 79.1, making it the fifth most expensive city globally, with monthly expenses averaging S$5,134 for a single person and S$12,575 for a family of four. These figures highlight the financial strain even for middle-income earners, where a six-figure salary may not stretch as far as expected. The man’s consideration of Malaysia, where living costs are approximately 73% lower, underscores a growing interest in balancing affordability with quality of life. This article explores Singapore’s personal finance landscape through the lens of these relocation considerations, focusing on cost of living, education, personal finance strategies, and quality-of-life trade-offs, offering a detailed analysis of the factors driving such decisions.

Singapore’s reputation as one of the world’s most expensive cities is well-documented, with a cost of living index of 79.1 placing it among the global top tier. For a single person, monthly expenses average S$5,134, encompassing housing, food, transportation, and other essentials. For a family of four, this figure rises to approximately S$12,575, a significant burden even for those earning substantial incomes like the S$100,000 per year cited by the Singaporean man. Housing is a primary driver of these costs, with one-bedroom apartment rentals in the city center ranging from S$2,500 to S$3,500 monthly. Homeownership, a common aspiration, is equally challenging due to high property prices, with the property price-to-income ratio in Singapore standing at 21.63, one of the highest globally. The Central Provident Fund (CPF), a mandatory savings scheme, allows contributions to be used for housing, but even with this support, many families find it difficult to afford desirable properties without significant financial strain.

Singapore’s education system is globally renowned, consistently ranking among the top in the Programme for International Student Assessment (PISA) for mathematics, science, and reading. With a 97% rate of students continuing education beyond age 18, the system’s structured, English-medium curriculum prepares students for international opportunities. However, this excellence comes with intense academic pressure, a concern highlighted by the Singaporean man who cited the education system’s impact on his children as a primary reason for considering relocation. The competitive environment, characterized by rigorous examinations and streaming based on academic performance, can lead to stress and burnout, prompting some families to seek alternatives that prioritize holistic development.

Managing personal finances in Singapore requires strategic planning due to the city’s high cost of living. For an individual earning S$100,000 annually, the net income after taxes and essential expenses may be insufficient to maintain a comfortable lifestyle, particularly for a family with three children. The CPF plays a pivotal role, with contribution rates of 20% from employees and 17% from employers for citizens, supporting housing, healthcare, and retirement. However, the scheme’s restrictions, such as limited withdrawal options before retirement age, necessitate additional savings and investment strategies. Financial literacy is increasingly vital, with many Singaporeans turning to budgeting tools, low-cost investment platforms, and government subsidies to stretch their income.

Singapore offers a high quality of life, with a Numbeo Quality of Life Index score of 154.69, surpassing Malaysia’s 134.19. Key strengths include safety (75.12 vs. Malaysia’s 39.38), healthcare (71.81 vs. 68.81), and purchasing power (102.03 vs. 108.34). Singapore’s low pollution index (32.61 vs. Malaysia’s 65.05) and efficient infrastructure further enhance its appeal. However, the high cost of living and fast-paced environment can detract from overall well-being, as noted by the Singaporean man seeking a slower, more balanced lifestyle. Malaysia, with its lower cost of living and property price-to-income ratio (7.77 vs. Singapore’s 21.63), offers financial relief and a more relaxed pace, particularly in areas like Johor Bahru or Penang.

While Malaysia’s affordability is appealing, staying in Singapore offers long-term financial and lifestyle advantages that warrant consideration. Singapore’s strong economy, with a GDP per capita of S$127,500 compared to Malaysia’s S$33,600, supports higher earning potential and career opportunities, particularly in finance, technology, and services. The CPF system, despite its restrictions, provides a robust framework for retirement planning, with an average balance of S$96,000 for active members aged 35–44. Additionally, Singapore’s progressive tax system, with a maximum rate of 24% for incomes above S$1,000,000, is lower than Malaysia’s 28% for incomes above RM2,000,000, offering tax advantages for high earners. These factors suggest that remaining in Singapore could yield greater financial stability over time, particularly for those with access to high-paying jobs.

The decision to relocate from Singapore to Malaysia, as contemplated by the Singaporean man earning S$100,000 annually, encapsulates the broader challenges of navigating personal finance in one of the world’s most expensive cities. Singapore’s high cost of living, driven by housing, education, and transportation expenses, places significant pressure on families, even those with substantial incomes. Malaysia’s affordability, with living costs 73% lower and a more relaxed lifestyle, presents a compelling alternative, but it comes with trade-offs in safety, healthcare quality, and educational standards. Looking ahead, Singapore’s personal finance landscape will likely continue to evolve, with rising costs prompting more residents to explore relocation or adopt aggressive financial strategies. As globalization facilitates cross-border mobility, such decisions will become increasingly common, underscoring the need for Singaporeans to balance immediate financial relief with long-term goals. Whether staying in Singapore to leverage its economic opportunities or moving to Malaysia for a more affordable and balanced life, the choice reflects a deeply personal calculus shaped by financial realities and aspirations for well-being.