To The Moon

Did you know that Singapore has garnered a few "#1" labels worldwide over the years ? 

Bet you didn't realize. Here are the most current :

• #1 Best road in the World (2022)
• World tallest indoor waterfall at Jewel
• Most expensive country to buy a car, in the world.
• #1 Maritime Capital in the world ranked by DNV GL
• #1 Most networked readiness country, Asia & Pacific (2022)
• Freest economy in Asia Pacific region in 2022, Index of Economic Freedom.
• Most Instagrammable placein the world (2022) by travel publication Big 7 on Tuesday (Jan 18).
• Best country in the World to do business (next 5 years), in EIU’s business environment rankings (BERs)

Followings were past "glories" :

Singapore's former #1s

Of course, not forgetting "#1 - most expensive city in the world from 2015 to 2022".

Not surprised at all. Its the price to be paid for striving to be associated with the "#1" label ?  No ? 

The "really curious" question is "when Singapore embarks on a construction project or policy making or framing the education system" :

• Was the #1 ranking, a premeditated goal of the activities ?
• Was the "#1" ranking, a "as a result" pleasant surprise after above activities have been completed ?

Just so we're clear, there is a subtle difference between "costs of living" & "standards of living". 

Wanted to highlight this because some of the posts seemed to have confused the two concepts.

Refer to below pictorial for the definitions.  Thanks.

Difference between cost of living & standard of living

Why is costs of living in Singapore sky high ? 

Followings are possible "root causes" ? 

Do you think they are valid ?

(1) Land scarcity.

• for a small island-state, there will never be enough land for use its many purposes.
• there will always be opportunity costs when land is used for one purpose and not the other.
• a 5-room public housing that cost $82,000 in 1982 is now $541,000, 40 years later - whooping +659.76%.
• has govt subsidies failed to match rising costs or has demand outstripped supply ?

(2) Costs of owning a private car

• prior to purchasing a car, a buyer needs to bid for a certificate of "entitlement" (COE) via a govt bid process
• the purpose of the COE quota system is to manage the overall car population based on a car-out, car-in mechanism.
• a new car has a 10 years shelf life. After 10 years, the car would be scrapped and the COE expires; paving the way for a new entrant (car) into the population.
• apply the Law of Supply & Demand, there may be occasions where the COE is more expensive than the purchased vehicle.
• owning a car does not make economic sense; granted the existence of an efficient public transport network. 
• nevertheless, it remains an aspiration for most S'porean to own one; not to mention a "status symbol" for minority few.

(3) Lack of natural resources. Singapore is definitely :

• without copious amount of land for its many uses and a country's industrialization
• without energy resource eg. Oil, Natural gas to generate electricity to power the country
• without precious metals eg. Gold, Silver, Lithium, Copper etc..
• without radioactive materials eg. Plutonium, Uranium etc.. for nuclear plants

Just about the only "natural" resource that Singapore possesses is her people. Even that is faltering :

• this country faces a growing ageing population vs a young one
• in year 2021, percentage of elderly 65 yo & above was 17.60%
• by year 2030, percentage of elderly 65 yo & above would be 23.80%

Could this be attributed to the successfully executed "family planning" campaign by the incumbent govt back in the mid-70s ?

Have a word or two with someone from that era on the "Two is enough" campaign.  I'm sure they would have a lot to say.

(4) Last but not least, Singapore's open economy is a culprit thats guilty as charged.

In embarking on this (a "right" decision many years back), the benefits have been reaped :

• Lower Costs. Open economies are able to get cheaper imports and can sell exports at higher prices.
• Improved availability of Goods & Services.
• Global prosperity and Flow of productive resources.
• Superiority of trade over isolation.
• Impetus to innovation.

Supposed no one could foresee (not even the incumbent) how quickly this gets shaken to its core, when a pandemic of global scale occurs.

Could this be the reason why in developed countries, there are some sectors (especially agricultural) that continued to be heavily subsidised by the government even when its loss making ?

Do these government recognize something that Singapore did not ?  What do you think ?

Rising costs - here to stay ?

When the pandemic exploded; Singapore has to scramble  feverently to establish ties even with the most far flunged countries, to secure sustenance (food & essentials) for its only natural resource. 

With that, "inflation" was also imported into the country in the process.  It is not as if there was option or choice.  There isn't.

In 25 days' time, on 01 Jan 2023 costs of living will further rise by 1% across the board when the Goods & Services tax is revised from current 7% to the new 8%.

Costs of living will continue to rise until (a) the pandemic (really) blows over and (b) resolutions to the end of Russia/Ukraine war are exercised.

When peace is restored, only then can hope comes forth and the "great" reset comes about.

Until then, there is Hobson's choice but to tighten one's belt, economised to stretched that dollar and of course, invest selectively in "choiced" stock in the hope that when market next Boom, one is ready to take profit and make some money in the process.

You do not have to agree to what have been shared.  Do share your thoughts in the below Comments section ok. Tks in advance.

Please "Like" this post ok ?  Thanks in advance.  The rating is important and motivation to me... Hee hee.

Matching song ?  What Do You See by Electrico.  Singapore's 2009 National Day anthem.  Dunno ? YouTube it.  A gem !

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