Singapore: Singapore is once again the most expensive city in the worldAccording to Julius Baer’s Global Wealth & Lifestyles Report 2024.
The perception has raised concern among residents, with one Singaporean asking, “What will happen to our struggling middle class?”, highlighting the financial strain on them as they face rising living costs as the super-rich flock to the city.
The city-state is also known as the most expensive place in the world for car ownership. Singapore’s reputation for political and economic stability and business-friendly environment continues to attract wealthy individuals from around the world.
According to the report, the average price of luxury goods in Singapore was broadly stable year-on-year, down 0.46 percent in local currency terms and up 0.8 percent in US dollar terms.
Moreover, inflation remains stable at 4.8% through 2023.
Julius Baer’s index ranks the world’s 25 most expensive cities from November 2023 to March 2024, based on an analysis of homes, cars, business class flights and other luxury items for people with investable assets of more than US$1 million (S$1.35 million).
This year, prices of goods have increased faster (5%) than prices of services (4%).
Despite these rising costs, the ultra-rich continue to spend more, especially on hotels, fine dining, fashion and accessories.
In 2024, prices of luxury consumer goods such as fashion and jewelry recorded the highest increase at 9.6%, mainly due to rising raw material, energy and labor costs.
Interestingly, bicycle prices fell a massive 6.4 percent globally. On a smaller scale, business class airfares fell 1.7 percent and whiskey prices fell 1 percent.
Despite these extravagant figures, many Singaporeans have expressed concern about their plight.
“Sometimes I really wonder if the world will turn its cameras to the rest of the island and show a middle class struggling with ever-rising costs while a burgeoning class of billionaires indulge in luxury,” lamented one user.
Another Singaporean pointed out the shocking income disparity even among middle-income wage earners, saying: “Even among the middle class, the income gap is shockingly large.”
As the cost of living continues to rise, the disparity will be felt more acutely. Basic goods, housing, and transportation are becoming more expensive, making it harder for the middle class to keep up.
“If this is the most expensive city for the super-rich, imagine how the average Singaporean survives and makes ends meet,” said another resident.
According to Mercer’s 2024 Cost of Living Data Report, Singapore ranks alongside Hong Kong and Zurich as one of the most expensive cities to live in for foreign workers.
Factors such as an expensive housing market, high transportation costs, and the high cost of goods and services contribute to the high cost of living.
Despite the economic growth and stability that attracts the wealthy, these factors create significant challenges for many Singaporeans.
“Not every photo tells the story… please interview the voiceless minority,” Singaporeans said on social media. /TISG
Also read: Singapore is the 3rd most relaxing and ‘cozy’ city in Asia
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