Wednesday, January 05, 2011

UBS Report : Purchasing Power Comparison.

In an earlier posting, I did a "not-so-rigorous" comparison of the cost of living relative to wages between Singapore and Malaysian cities and concluded that the quality of life in Malaysian cities may not be too far off from Singapore's[earlier posting here].

Here is what I wrote in my blog a few weeks ago:

"2 decades ago, when you make a general statement that the life in Singapore is better than in Malaysia, most people would believe it and agree with you. Today the difference in the quality of life is not so clear. There are still many things that Singapore does better than Malaysia. We have low crime rates (hmm...gangs?), an outstanding education system and outstanding opportunities for a small number highly talented individuals. You can make millions of you climb all the way up to be a minister or CEO of a GLC. However, most Singaporeans are not highly talented - ordinary Singaporeans have ordinary talents....and by the law of nature about half our population have below average talent & IQ. The rising cost of living especially the cost of public housing means that the struggle for ordinary Singapore to stay afloat becomes tougher with each passing year. For the elderly and low income Singaporeans, the pain of poverty becomes harder to bear as the cost of living spirals up. Many ordinary Singaporeans are beginning to ask...what is the key selling point of our system? One that makes them struggle their whole life without a good retirement in Singapore to look forward to." - [Link]


It turned out that UBS did a more rigorous study and found that the purchasing power of Malaysians in KL is actually higher that of Singaporeans. UBS did a comparison of 73 cities by measuring the purchasing power[Full report found here].

"Prices and Earnings provides a comprehensive comparison of prices (122 goods and services plus apartment rents), incomes, income taxes, working hours and vacation days for 14 different occupations" - UBS.


According to the report Singapore ranks 11th in terms of cost of living and 43rd in terms of wages. Singapore came in 42nd for purchasing power which is wages relative to the cost of living and Kuala Lumpur is 2 places ahead of Singapore. Singapore is behind Seoul, Tokyo, Taipei and Hong Kong. In 2006 Singapore workers have a purchasing power index of 54.9 (using New York as the base=100), today that figure has fallen to 40.6.

Basically, Singaporeans have been put on a threadmil. As wages go up, the price level of housing, transport and medical care goes up even more. Its like the speed of the threadmill is increased year after year and you are made run harder just to stay on the spot and not fall behind. For the bottom 30% whose wages have remained more or less stagnant for the past 10 years, their quality of life has simply deteriorated. So what is the selling point of this system for ordinary Singaporeans?

35 comments:

sgcynic said...

That's why Lim Swee Say wants us to be cheaper, better, faster.

Anonymous said...

Is higher purchasing power of Singaporeans a KPI for ministers' pay rise and bonus?

Has lower purchasing power and quality of life deteriorated make the opposition any much stronger? Or less foreign talents willing to come here?

If you know the right answers, what's the issue for the PAP?

Anonymous said...

The situation is made worse by the flood of foreigners arriving at Singapore.

These foreigners have taken over the Singaporeans jobs leaving more Singaporeans unemployed. Any Singaporean who is out of job more than 6 months is not captured in the unemployment statistics. Moreover, unemployment rate includes both Singaporeans and Permanent Residents. By including Permanent Residents in the unemployment rate, the unemployment rate has been shown to be low figure whereas the actual unemployment rate for Singaporeans only is actually very high.

For Singaporeans who barely hold on to their jobs, they are hard pressed to keep their pay remain stagnant, if not lower pay over the years, due to the downward pressure brought about by the lower pay the cheap foreigners are asking. The cheap foreigners have no problem of getting lower pay as they are here to earn the strong Sing dollars to eventually go back to live in the low cost foreign countries they came from. Singaporeans are stuck in Singapore to live high cost with stagnant pay.

Anonymous said...

With talents like Liew Mun Leong, Ng Teng Fong, things can only got worse.

Anonymous said...

Looks like the days of laughing at our Malaysian cousins over the causeway are long over.

Dont Complain also said...

Who cares about the bottom 30%? It is their fault that they cannot make it in a competitive world. By increasing the speed of the treadmill, i will only get fitter and stronger citizens. Certain citizens willdiscover theya re fitter than they think. the rest could just fall off their treadmill and dont pollute the gene pool.

Globalisation is a purification process. It will make the human race strong enough for perpetual survivor. So tese 30% are not a group we should help, but eliminate. In fact their gene pool is so poullted that only incineration is the safest way to get rid of them.

It is high time, Citizenship must not be viewed as an entitlement. i suggest every year, your citizenship will be renewed via a points system that will determine your contributions to your country. those who fail will have a suspended citizenship and all beenfits that comes with it will be suspended as well. repeated failure will mean ejection to a refugee zone.

Anonymous said...

Most Singaporeans will not mind having their pays stagnant, bonuses reduced and no promotion IF COST OF LIVING IS NOT BEEN AND BEING CONSTANTLY RAISED.

AND THE RISES IN COST OF LIVING ARE NOT ALL JUSTIFIABLE AS THEY WERE RAISED FOR BOTTOMLINES TO FATTEN THE REMUNERATIONS OF THE TOP EXECUTIVES.

WHERE ARE THE CONSCIENCES OF THE LEADERS?

Anonymous said...

The high cost is not sustainable.
Unless you want to "hv your cake & eat it!!"

The high "perf bonuses" also lead to many unhappiness and ill-feelngs among staff.

Anonymous said...

The main cost today is not the cost of labor. It's the cost of rent. A small hawker stall in a market is about S$2000. The cleaner gets S$790 (Tiong Bahru market) a month for working 10 hours a day, 7 days a week. That works out to S$2.63 per hour. And if she can't go to work she has to pay the boss S$30 a day (which is more than what she gets in a day). Please don't tell me that with so many hawker stalls in the market that pays so much you can't afford to pay the cleaner a bit more. If rent goes down pay can go up. And because rent is high, pay has to go down. And where does the rent goes? To all our gov linked companies. It's the China feudal landlord system all over again.

Anonymous said...

To "attract" FTs to come here, you hv to offer them "better" jobs ( otherwise who will come)??
So this wld be at the expense of sporean (afterall it is not a country, just a city).

So instead of "creating jobs", they may "break more rice bowls".

Futhermore, more money will be spent to advertise all overall the world to get them to come here, instead of using the money to help those locals who are unemployed or under-employed, who need the help the most.

Anonymous said...

Dont Complain:
"will have a suspended citizenship and all beenfits that comes with it will be suspended as well."

Please enlighten me on the benefits on being a singaporean. CPF and NS? If so pls suspend my benefits thanks...

NotVotingPAP said...

Anon 2:47,

You really hit the nail on the head. That's precisely how I feel about the administration. There are many unhappy Singaporeans and they are upset because of PAP policies. There are many more angry Singaporeans on the streets. This coming election, if the opposition plays it right and well, they will get a huge bonus from Singaporeans. Future is ready for an end to this one-party is never ever wrong rule. Singaporeans are waiting to send a message. I know of many who would vote simply to spite the harm our leaders' policies have done to us. Keep bringing in cheap filippinos and chinamen. I can't even take a decent train ride in this fucking country because it smells. There are rats at the void decks behind the rubbish chutes in my flat at Marsiling. The steel barricades at the bus-stops at the Woodlands interchange have queues that requires another 2 more metal barricades to be erected. The fucking monorails are too small to carry the foreigners and us to work. The platforms at choa chu kang at so small, they have to send 3 mrt staff each morning to literally dierct the traffic. They bring in these cheap stupid foreigners and did not design big monorails to carry the huge load. These mrt platforms at chua chu kang are not sustainable. SMRT has already maxed out their trains. The problem is fucking overcrowding. This country is too crowded! It's smothering.

Anonymous said...

Singaporeans have fallen into the first trap. They actually bought into the government's mantra that we do need FTs. Look at Japan. They went the opposite way and still standing after 10 years. The japanese consumers are not buying. That's because they have enough. They don't need to buy another ipod.

Disllusioned Singaporeans said...

It is better to be a second class citizen in another country than to be a third class citizen in your own country. But then, the ministers say that this is not a country, it is a city state. We should heed the ggovernment's call of foreign talents. We should go overseas. These foreigners are here to take advantage of our strong Sing dollar. They are from poor countries. We should do the same. We should actually go to acountry and not a tiny island city state to take advantage of their stronger dollar. We should take a lesson from our foreign breathens here. The ministers can stay put. They are waiting for their million dollar retirement PENSION. As for you and me, good luck to you, my friend. Do your best to keep your family and relationships alive and survive. In a country of 3 millions Singaporeans and 2 million foreigners, nothing will chnage. So get real. And get real quickly. You have a government who is telling you to work like a dog till you are past your late 60s and they dont guarantee you a job when they raise your retirement age. Your cpf is locked out. They keep raising the minimum sum and withdrawal age. And you are still going about your daily work and getting your kicks here and there without paying serious attention to what is going to happen to you when old age arrives. By then, you are too weak and too late to tell the government anything. And by then, they would not be around and they would have gotten their million dollar retirement pension. Mind you, no other civil servants beside the PAPies have pension. The pension plan has been absolved years ago. Pensions are only for ministers to continue enjoying their level of million dollar lifestyles. Wake up, people! Don't vote for them anymore. Enough already! Let's change it!

TokyoSingaporean said...

We are lowly paid in consideration to our rising cost of living. Observe Tokyo, Seoul, Hong Kong, Moscow and Budapest. We are worse off than Moscow. The japanese are earning more than double of what an average Singaporean earns. They have long nationalised their local industies and venture into international markets. What economic policy did we have after 40 years with this government? We are still NOT producing and developing local talent and local industries. Instead, we are asking others from surrounding thoird world countries to come work in our country, not for our own industries (as we don't have one), but to work in companies and factories set up here by other countries who have taken the lead eons ago to venture. Are you proud to be a Singaporean? Is there something to be proud about a city that doesn't produce its own brand? How is creativity going to blossom when there is thought control and people are not allowed to be expressive of their ideas? Where politics and propaganda is OVERLY rife? Many Singaporeans do not take pride in being Singaporeans. When they go on holidays, they can't even find a Singaporean dish. That's how pathetic we are. We even need to offer PR and citizenships to chinamen to represent us for sports events on the international scene. Now, we are famous for casinos. Even then, these casinos do not belong to us. Where is the "Made in Singapore" product? Stop supporting this government quick fix solutions and cheap economic policies. It is not sustainable and you know it!

When the SM Goh Chok Tong was prime minister, he promised a Swiss standard of living in 15 years time, now he is telling us not to believe in total happiness but net happiness. The question is: Is our net happines the Swiss standard he promised?

I think we have been taken for a ride. He should have just said Moscow standard of living.

Take a look below where we stand in terms of wages. New York is set at 100 points.

World Salaries 2010. [For your intelligent consideration] Look at Japan, Seoul, Hong Kong, Singapore and Moscow.

Ranking relative to the index
on a gross basis

Zurich 121.8
Copenhagen 118.2
Geneva 117.3
Oslo 102.1
New York 100.0
Sydney 93.1
Los Angeles 90.9
Stockholm 82.4
Munich 82.2
Luxembourg 80.2
Chicago 80.1
Miami 79.2
Toronto 78.9
Frankfurt 78.8
Brussels 78.6
Montreal 77.7
Tokyo 77.1
Helsinki 75.1
Dublin 74.6
London 73.3
Amsterdam 73.1
Berlin 70.8
Vienna 68.0
Paris 65.4
Lyon 64.5
Milan 60.0
Nicosia 53.8
Auckland 53.3
Madrid 52.1
Barcelona 51.9
Rome 47.5
Athens 43.8
ISRAEL 43.7
Lisbon 42.1
Ljubljana 40.9
Dubai 39.7
SEOUL 37.4
HONG KONG 34.9
Johannesburg 34.3
Sao Paulo 33.8
TAIPEI 33.3
MOSCOW 30.5
SINGAPORE 30.0
Rio de Janeiro 29.7
Istanbul 26.7
Manama 25.5
BUDAPEST 19.7

TokyoSingaporean said...

We are lowly paid in consideration to our rising cost of living. Observe Tokyo, Seoul, Hong Kong, Moscow and Budapest. We are worse off than Moscow. The japanese are earning more than double of what an average Singaporean earns. They have long nationalised their local industies and venture into international markets. What economic policy did we have after 40 years with this government? We are still NOT producing and developing local talent and local industries. Instead, we are asking others from surrounding thoird world countries to come work in our country, not for our own industries (as we don't have one), but to work in companies and factories set up here by other countries who have taken the lead eons ago to venture. Are you proud to be a Singaporean? Is there something to be proud about a city that doesn't produce its own brand? How is creativity going to blossom when there is thought control and people are not allowed to be expressive of their ideas? Where politics and propaganda is OVERLY rife? Many Singaporeans do not take pride in being Singaporeans. When they go on holidays, they can't even find a Singaporean dish. That's how pathetic we are. We even need to offer PR and citizenships to chinamen to represent us for sports events on the international scene. Now, we are famous for casinos. Even then, these casinos do not belong to us. Where is the "Made in Singapore" product? Stop supporting this government quick fix solutions and cheap economic policies. It is not sustainable and you know it!

When the SM Goh Chok Tong was prime minister, he promised a Swiss standard of living in 15 years time, now he is telling us not to believe in total happiness but net happiness. The question is: Is our net happines the Swiss standard he promised?

I think we have been taken for a ride. He should have just said Moscow standard of living.

Take a look below where we stand in terms of wages. New York is set at 100 points.

World Salaries 2010. [For your intelligent consideration] Look at Japan, Seoul, Hong Kong, Singapore and Moscow.

Ranking relative to the index
on a gross basis

Zurich 121.8
Copenhagen 118.2
Geneva 117.3
Oslo 102.1
New York 100.0
Sydney 93.1
Los Angeles 90.9
Stockholm 82.4
Munich 82.2
Luxembourg 80.2
Chicago 80.1
Miami 79.2
Toronto 78.9
Frankfurt 78.8
Brussels 78.6
Montreal 77.7
Tokyo 77.1
Helsinki 75.1
Dublin 74.6
London 73.3
Amsterdam 73.1
Berlin 70.8
Vienna 68.0
Paris 65.4
Lyon 64.5
Milan 60.0
Nicosia 53.8
Auckland 53.3
Madrid 52.1
Barcelona 51.9
Rome 47.5
Athens 43.8
ISRAEL 43.7
Lisbon 42.1
Ljubljana 40.9
Dubai 39.7
SEOUL 37.4
HONG KONG 34.9
Johannesburg 34.3
Sao Paulo 33.8
TAIPEI 33.3
MOSCOW 30.5
SINGAPORE 30.0
Rio de Janeiro 29.7
Istanbul 26.7
Manama 25.5
BUDAPEST 19.7

TokyoSingaporean said...

We are lowly paid in consideration to our rising cost of living. Observe Tokyo, Seoul, Hong Kong, Moscow and Budapest. We are worse off than Moscow. The japanese are earning more than double of what an average Singaporean earns. They have long nationalised their local industies and venture into international markets. What economic policy did we have after 40 years with this government? We are still NOT producing and developing local talent and local industries. Instead, we are asking others from surrounding thoird world countries to come work in our country, not for our own industries (as we don't have one), but to work in companies and factories set up here by other countries who have taken the lead eons ago to venture. Are you proud to be a Singaporean? Is there something to be proud about a city that doesn't produce its own brand? How is creativity going to blossom when there is thought control and people are not allowed to be expressive of their ideas? Where politics and propaganda is OVERLY rife? Many Singaporeans do not take pride in being Singaporeans. When they go on holidays, they can't even find a Singaporean dish. That's how pathetic we are. We even need to offer PR and citizenships to chinamen to represent us for sports events on the international scene. Now, we are famous for casinos. Even then, these casinos do not belong to us. Where is the "Made in Singapore" product? Stop supporting this government quick fix solutions and cheap economic policies. It is not sustainable and you know it!

When the SM Goh Chok Tong was prime minister, he promised a Swiss standard of living in 15 years time, now he is telling us not to believe in total happiness but net happiness. The question is: Is our net happines the Swiss standard he promised?

I think we have been taken for a ride. He should have just said Moscow standard of living.

Take a look below where we stand in terms of wages. New York is set at 100 points.

World Salaries 2010. [For your intelligent consideration] Look at Japan, Seoul, Hong Kong, Singapore and Moscow.

Ranking relative to the index
on a gross basis

Zurich 121.8
Copenhagen 118.2
Geneva 117.3
Oslo 102.1
New York 100.0
Sydney 93.1
Los Angeles 90.9
Stockholm 82.4
Munich 82.2
Luxembourg 80.2
Chicago 80.1
Miami 79.2
Toronto 78.9
Frankfurt 78.8
Brussels 78.6
Montreal 77.7
Tokyo 77.1
Helsinki 75.1
Dublin 74.6
London 73.3
Amsterdam 73.1
Berlin 70.8
Vienna 68.0
Paris 65.4
Lyon 64.5
Milan 60.0
Nicosia 53.8
Auckland 53.3
Madrid 52.1
Barcelona 51.9
Rome 47.5
Athens 43.8
ISRAEL 43.7
Lisbon 42.1
Ljubljana 40.9
Dubai 39.7
SEOUL 37.4
HONG KONG 34.9
Johannesburg 34.3
Sao Paulo 33.8
TAIPEI 33.3
MOSCOW 30.5
SINGAPORE 30.0
Rio de Janeiro 29.7
Istanbul 26.7
Manama 25.5
BUDAPEST 19.7

Alan Wong said...

I am more inclined to think that our PAP govt's involvement in practically every pie of the economy is the real setback to a fair distribution of the wages for Singaporeans.

On the one hand, our Statutory Boards & GLCs are accumulating tonnes of monies on behalf of the PAP govt and our Ministers & their elite cronies make sure that they themselves are eventually rewarded handsomely from time to time as they see fit. For the ordinary folks at the bottom level, only the crumbs are given at certain crutial opportune moments such as the GE as carrots to entice them to vote for the incumbent PAP to stay in power.

Meantime, our Govt gets to collect more & more monies through GST, COEs, ERPs, land sales, rentals, bids, levies, gambling taxes, etc. which are all at the expense of every Singaporeans with the poorer ones hardest hit.

Because the govt is so involved in practically every business pie of the economy, it does make economic sense to the PAP Govt to bring in cheaper foreign workers as this would mean more profit for govt coffers which would also means more bonuses for the Govt officials.

Do you think whose direct interests would our PAP leaders be looking after first if our wages were allowed to increase in the absence of cheaper foreign imports especially if their own self-interest would be at stake ?

Anonymous said...

Why FTs?
Bec we want them to spend here so that we cld hv a "bigger market".
Instead, they come and take our jobs, or may be even to break our Rice Bowls.
They come here bec of the exchange rates. They want to remit money back. So they don't spend.
On the hand hand, there are many things which we do not hv a say. The "prices" are up to them to open their mouths, e.g housing, rental, fees and charges, etc.
So we hv the "worse" of both worlds.
So do u want such things to continue??

Anonymous said...

What's the point?

We should either vote out PAP, or just simply down our arms when an invasion comes.

It simply doesn't make sense to defend our right to be poor or our right to service mortgages for grossly overpriced homes and cars.

JUN said...

When floods do occur, The North Face Sale the water, though turbid for the time, subsides rapidly and soon becomes clear again. Below Hertford, floods are liable to act injuriously, the water remaining longer on the adjoining marsh lands. Mr. Beardmore stated that heavy floodings had taken place in May 1824, in November 1852, and in October 1857, and that at such times large areas of land were, laid under water for several days. Skechers Shoes The marsh-lands on both sides of the lower Thames are not subject to such flooding, as the embankments are found to be sufficient to shut out the tides, and the primitive sewers, marsh-ditches, and tidal outlet-sluices regulate the delivery of flood waters so as to prevent injury to land. The marsh districts on both sides of the lower Lee are now subject to the double evil of flooding and droughts; during long continued dry weather the surface cracks until there are fissures several feet in depth. Flood water is passed much more rapidly down the valley of the Lee in consequence The North Face Sale of the improvements made of late years in the navigation by dredging the channels. Much, however, remains to be done which would improve the conditions of the marsh-land and the health of the people.The evidence as to the water-mills proves that in many instances the dams and ponds act injuriously by preventing land drainage and impeding floods. However useful Discount G Star Sale water-power may have been in former times, when these mills were first established, that use has now been greatly reduced in relative value, and, wherever there is sufficient trade to The North Face Sale make grinding corn a profitable occupation, steam-power has to be brought in as an auxiliary, the improved navigation and railway accommodation facilitating the delivery of coals so as to give an advantage to steam over the constantly alternating and uncertain flow of water. Water-power having diminished in commercial value, and land for agricultural purposes having greatly increased in value, injury to the adjoining lands may be shown to cause an annual money loss to the district Shape Ups Boots. To this money loss must be added injury to health by the retention of large areas of undrained land. Water-mills and mill-dams are proved to be injurious to local properties, but we have no evidence as to any serious pollutions being caused by these mills, other than so far as they cause a partial stagnation in the water and accumulations of mud by ponding.

Anonymous said...

Hi Lucky,
I’ve been reading your past blog entries on income inequality in sg and it’s true that there’re a lot of elderly cleaners and tissue paper sellers around today esp when I’m dining at Bedok hawker centre. But with existing schemes like Comcare, Workfare and Public Assistance Scheme to help the needy, I really don’t understand y it’s not helping this bad situation that has been ongoing for years. Why are these cleaners not going for workfare? Are they not informed or are they not qualified or wat??? I thought the govt has been putting in $ for workfare all this while? Pls enlighten me. Thanks

Anonymous said...

continued(anon 18:29)

"The Community Care Endowment Fund, or ComCare for short, represents the Government’s commitment to do more for needy Singaporeans. Since the launch in 2005 by the Prime Minister, it has disbursed more than $200 million to help 160,000 needy Singaporeans, and the government has been progressively topping up the Endowment Fund which now stands at $800 million." taken frm MCYS News
I dunno much about this but is 800 million too little to provide safety net for the society? So wat's the solution to the unequal income distribution in sg? Cease the inflow of foreign labour? Give more welfare and bcome a welfare state? Raise wage(i tot that's what WIS is doing)?

Anonymous said...

Running a place like taking the exam??
Only looking for impressive numbers??
Impressive buildings, nice look on the exterior?
The nice look cannot fill yr stomach!
Does it reaaly matters?
Managing people is not taking exam.

DareToAct said...

They, the government, will tell you this:

We should not just look at purchasing power;
But look at what we actually can purchase.

The HDBs you purchased are world's best,
The COEs you purchased are one of a kind (soon not so as China also into COENow),

Anonymous said...

"We should either vote out PAP, or just simply down our arms when an invasion comes". Unquote.

There is a need for those in National Service and those that are due for National Service to ask themselves whether or not they should serve with the prevailing political developments in Sin.

Other than the indisputable disruptions and effects to their carreers and hence their survivals and livings, the QUESTION THAT MATTERS MOST IS; WHAT'S IS THERE FOR THEM TO PROTECT AND DEFEND?

AND if defending the Establishment is going to result in the people suffering more oppression and hardship caused by their policies, then Singaporeans have to ask themselves whether National Service should be a national obligation.

REMEMBER AND REMIND YOURSELF THAT SINGAPOREANS ARE NOT EVEN PROTECTED BY THE LEADERS IN THEIR CARREERS AND WELLBEINGS.

Anonymous said...

"""The Singapore that we knew is history – and deteriorating as we speak. """

Anonymous said...

Mr Lucky

To solve a problem you must first face the facts honestly.
And then act.
Right now you are simply a coward running away from reality.

Look at the Tea Party.
The members are dumb and dumber.
But they got their fat arses off the sofa and actually did something. Today they have more influence on US politics than Paul Krugman. And Krugman's blog have a far wider audience than yours.

Whining will only make things worse. Like more GST to help the poor. Either stand up and be counted or pls .. just lie down like a dead fish and get over with it quickly.

Goh Meng Seng is wrong. You dun have 4 or 5 elections to set things right. The coming one is the last chance.

http://vonhayek.blogspot.com/ said...

Finally, the world is seeing "food riots" again.

http://news.yahoo.com/s/ap/20110106/ap_on_re_af/af_algeria_riots

Not too long ago, other than Sahel region of Africa (ethiopia, Sudan..etc), the rest of the world have generally solved the food problem.

Thanks to stealing by QE, bankers has robbed so much from the rest of population that people start rioting for food.

Till now, the QE is still at the beginning stage of inflating commodity price.

If we see a 2x hike in food price here in SG, PAP can kiss goodbye to their power.

Anonymous said...

"...amid simmering frustration that Algeria's abundant gas-and-oil resources have not translated into broader prosperity."

Sounds familiar?

Like ...double digit GDP growth have not translated into broader prosperity. Or more likely broader hardship.

Anonymous said...

Many Singaporeans are hoping and waiting futilely and hopelessly for the change of leadership or a successful uprising in the absence of a majority election victory by the oppositions.

Anonymous said...

Wow, Alan Wong, I think you got it spot on. Infact many companies complain that JTC's rent is too high. And if the gov wanted to do something about high costs in Singapore, they can easily just reduce rent...which is a large component of operating cost. Instead wages are pushed low to maintain gov's cash flow in other areas like rent.

Wang said...

Lucky

Looking at the analysis used in UBS, it was flawed and look towards a different basket of goods and using certain wrong assumptions.
Looking at the ST analysis, it made sense.

You should look at housing and transport as the areas of discontentment.

Regards

www.lerida-3d.com said...

Goodness, there is a great deal of effective data in this post!

bluebeard said...

Hey Lucky guess what. I was on the UBS site looking at the 2012 edition of this analysis to see how Singapore fared last year. To my surprise Singapore had been totally excluded from all the lists. I hit Ctrl+F and found NOTHING for Singapore at all. And do we even need to wonder why.

http://www.ubs.com/global/en/wealth_management/wealth_management_research/prices_earnings.html