Balancing Lifestyle and Finances: How to Manage the High Cost of Living in Singapore

Singapore is truly an enigma at times. One of the wealthiest countries in the world, with a GDP of no less than $574 billion, and yet a country in which more and more citizens are finding it hard to pay up their monthly loan obligations or gather the necessary funds for daily expenses. When we look at the metrics, Singapore looks truly excellent. A GPD per capita that exceeds $80,000, a life expectancy for the average citizen that surpasses 83 years, a crime rate that puts us in the top five safest countries in the world, and, of course, a public transit system that many consider to be the most performant in all of Asia.

Singapore is not a third-world country. It’s a global hub of innovation that, according to the World Economic Forum, ranks in the global top five for innovation, infrastructure and business competitiveness. However, unfortunately, Singapore is also a place in which 60% of the population lives paycheck to paycheck. It’s baffling at times how in such a rich country, so many people are one small external event away from facing economic hardships uncharacteristic of a developed state. However, this is the consequence of a fast-rising economy in which the living costs have long surpassed the financial possibilities of the average family.

It will depend on what type of loan you’re applying for. That said, as a general rule, you will be required to be at least 21 years old, be a citizen, PR, or foreigner with a valid work visa, and present proof of both your ongoing income and your residency. As for the documentation, our team will need a front and back copy of your NRIC, copies of your latest payslips or CPF contribution statement, and, of course, a document that attests to your residence status.

Did the high cost of living in Singapore impacted the viability of your venture’s services and therefore, were you forced to apply for a business loan? If so, we will need your venture’s ACRA documentation, your latest IRAS Notice of Assessment, recent profit and loss statements, and, not least, a business plan that expands on the feasibility of your marketing strategy.

Obtaining a loan in Singapore is quite straightforward, and once your application is approved, your rights as borrowers will be guaranteed by the government. Per the framework laid out in the Moneylenders Act of 2008, the maximum interest rate applicable to our lending services is capped at 4%. Plus, we cannot charge an administration fee for our packages that’s more than 10% of the loan principal. Our hands are tied, and therefore, you can be sure that you’ll obtain a good deal.