We created this dashboard with the aim of answering important questions about the rising cost of living in Singapore to understand the aspects which make it one of the most expensive cities to live in the world today. We will analyze this phenomenon and forecast the trend in the short-term. Key metrics will also be examined in further detail as well, in this dashboard. The questions which we will evaluate are as follows:
- Food prices have been increasing, but is it a considerable factor contributing to Singapore’s aggregate cost of living?
In order to determine if food prices will cause a large strain on Singaporeans’ income, we look at the proportion it has of the total monthly expenditure in 2015. However, we can see that housing rent has a much bigger slice of the pie at more than 40%.
- Healthcare costs have always been high, but is this due to a shortage of doctors in Singapore?
We examine the supply and demand of healthcare in the general sense – supply being the number of doctors we have per 1,000 residents and demand being the total resident population. The latter is definitely rising at a rate, that is quicker than our ‘supply’ of doctors. This might suggest that doctor’s fees might increase as well, to compensate for this shortfall.
- The housing market is becoming increasingly competitive, especially with Singapore’s perpetual issue of limited land space. What are some of the factors leading to this?
As Singapore’s land area has remained at around 700 square kilometers for the past decade, we are facing increasing housing prices due to a land crunch. This phenomenon can be evaluated in greater detail through the trend of the various housing indices over the years, such as HDB, private landed and private non-landed.
- How is our cost of living compared with other parts of the world, especially in Asia?
The cost of living is computed based on user inputs and price data consolidated from government sources, to generate the average expenses in a given city for a 4-person family. With New York City in the US kept as the benchmark (index = 100), we can see how Singapore ranks with it, as well as her other Asian neighbors and partners in the globe.
- After analyzing the individual aspects of Singapore’s rising cost of living, how can we forecast this for the foreseeable future?
Looking at the housing and food price indices, general and healthcare CPI, they appear to be on the upward trend. As a result, the cost of living index will also maintain a similar trend for the next 1 to 2 years. We can perform a simple forecast for each of the components, to visualize this impact on Singaporeans.
[EBAC 04 – 2017]