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Tag: high cost of living

  • Singapore Is World’s Most Expensive City To Live In

    Singapore Is World’s Most Expensive City To Live In

    Singapore has topped the Economist Intelligence Unit (EIU) list of the world’s most expensive cities to live in, according to the 2014 list released yesterday (this morning, March 4, Singapore time).

    Singapore jumped five places from No 6 last year to top this year’s list after rising in the list in recent years. The city was ranked No 18 a decade ago in the EIU’s Worldwide Cost of Living Survey.

    The Republic’s strong currency, which has appreciated about 40 per cent over the past decade, combined with soaring utility bills and the high cost of car ownership contributed to Singapore’s rise in the list, according to the EIU. Singapore is also the most expensive place in the world to buy clothes.

    Paris, Oslo, Zurich and Sydney also made the top five of the EIU list. Tokyo, the most expensive city to live in for 2013, fell to joint sixth place alongside Caracas, Geneva and Melbourne. At No 10 is Copenhagen.

    “Improving sentiment in structurally expensive European cities combined with the continued rise of Asian hubs means that these two regions continue to supply most of the world’s most expensive cities,” said Mr Jon Copestake, the editor of the EIU report.

    “But Asian cities also continue to make up many of the world’s cheapest, especially in the Indian subcontinent.”

    Predominantly higher costs of groceries has been singled out as a reason for most Asian cities figuring highly in this year’s list, with Tokyo still at the top of the list for everyday food items.

    The EIU’s Worldwide Cost of Living Survey, which is published twice a year, compares more than 400 individual prices across 160 products and services including food, clothing, household supplies, home rentals, transport and utility prices. All cities are compared against New York City as a base.

    According to the EIU statement, the survey is meant to let human resource line managers and expatriate executives compare the cost of living in 140 cities in 93 countries, which would allow hiring companies to calculate a fair remuneration package for relocating employees.

     

    Source: www.todayonline.com

  • Public Transport Fares Will Be More Expensive From 5 Apr 2015

    Public Transport Fares Will Be More Expensive From 5 Apr 2015

    There will be an overall increase of 2.8 per cent to public transport fares following the conclusion of the 2014 Fare Review Exercise, the Public Transport Council (PTC) announced on Wednesday (Jan 21).

    How the 2.8 per cent figure was calculated: By aggregating the 3.4 per cent fare adjustment quantum carried over from the 2013 Fare Review Exercise with the -0.6 per cent figure from 2014, the PTC said.

    But fares for senior citizen, and existing monthly travel concession prices will not rise, said the PTC. The Transport Ministry separately announced on Wednesday that fares for lower-wage workers and persons with disabilities will not increase, while the monthly concession pass for persons with disabilities will remain at S$60 per month.

    “In total, more than 1.1 million commuters will see their fares unchanged,” the PTC said in a press release.

    FARE CHANGES FROM APRIL

    From Apr 5 this year, adult card fares for buses and trains will increase by 2 to 5 cents, while student concessionary fares will increase by 1 cent, the PTC announced. Cash fares for adult bus and train rides will increase by 10 cents, while senior and student cash fares will remain unchanged.

    The prices of all monthly concession passes for adults, National Servicemen and senior citizens will remain the same, it reiterated.

    The PTC said bus and train fares will continue to be affordable, even for lower-income groups, as household income growth has generally outpaced household expenditure in public transport.

    For instance, in 2013, the second quintile (the 21st to 40th income percentile) and second decile (11th to 20th income percentile) of households in Singapore spent 2.2 per cent and 3.1 per cent of their monthly income on public transport, respectively. These were down from the 3.2 per cent and 4.6 percent, respectively, in 2003, it said.

    Said PTC Chairman Richard Magnus: “In approving the fare increase and deciding on the quantum, the Council made a concerted effort to minimise the impact on commuters, even to the extent of insulating some from the increase altogether. Overall, the fare adjustments for the 2014 fare exercise are lower than last year’s adjustments.”

    IMPACT ON OPERATORS

    With the fare increments, the PTC said the two public transport operators – SBS Transit and SMRT – will have to contribute S$5.5 million and S$8 million, respectively, to the Public Transport Fund. The total of S$13.5 million is S$2 million more than their contribution last year, according to the press release.

    The Government will utilise the Public Transport Fund to provide Public Transport Vouchers to lower-income households to mitigate the increase in their travel expenditure, it added.

    “I am always very concerned not only with making transport fares affordable, but making sure that our low-income families who need more assistance will be looked after,” Mr Magnus said. “The contributions to the Public Transport Fund by the operators will help defray the travel expenditure of these needy families.”

    “PLEASED” VULNERABLE GROUPS NOT AFFECTED BY HIKES: LUI

    Transport Minister Lui Tuck Yew said on Facebook that he was “pleased” that more than 1.1 million commuters, particularly more vulnerable groups like senior citizens and persons with disabilities, will not experience a fare increase.

    “Looking at the overall outcome of this year’s fare adjustment exercise, I believe the Public Transport Council has achieved a good balance between keeping fares affordable for Singaporeans and maintaining the viability and sustainability of our public transport system,” he wrote.

    He added that the 250,000 public transport vouchers of S$30 will be provided to needy commuters, and the ministry aims to simplify the application process further.

    “We also have other plans on the meaningful use of the Public Transport Fund and I will share these with you when we are ready,” the minister said.

     

    Source: www.channelnewsasia.com

  • First Deflation In 5 Years But Still No Savings On Food And Healthcare

    First Deflation In 5 Years But Still No Savings On Food And Healthcare

    Despite a strong Singapore dollar and falling oil prices, Singaporeans have said they have not noticed savings in areas such as food and healthcare.

    While the Consumer Price Index showed an overall decrease, food inflation for November stemmed the slide, rising 2.9 per cent year-on-year and up from 2.8 per cent in the previous month.

    This is despite oil prices driving down transport costs, and a strong Singapore dollar compared to regional currencies.

    The Monetary Authority of Singapore (MAS) said food prices rose 0.2 per cent due to more costly non-cooked food items, and higher prices of regional food supplies and hawker meals.

    F&B outlets Channel NewsAsia spoke to agreed, but cited other reasons too.

    Said Mr Dilip Ghosh, owner of Urban Fairways Golf Cafe and Bar: “Essentially, the costs of food and drinks rise because I believe for our supplier, rental and manpower costs go up. So as a whole, all our costs increase.”

    Rookery’s general manager, Mr Joshua Wee, said the two main cost drivers for his establishment were rent and labour. “We needed to invest in automation of some things, so that we do not have to pass back the high costs to the consumers,” he said.

    Senior economist at Mizuho Bank, Mr Vishnu Varathan, said that although a strong Singapore dollar buffers against rising costs in the region, it cannot absorb the increased cost for local services in a tight labour market, among other volatile conditions.

    He said: “If they are looking to see very rapid price drops in terms of food or any items they are consuming, that may not come through as quickly for three reasons. One, your labour costs may not be dropping. It may stabilise, but it may not drop as quickly, and businesses always need to build a buffer.

    “Two, even if you get oil prices dropping, that may not fully offset other things such as your Causeway toll going up and hence food from across the Causeway becoming more expensive.

    “Rentals also take a while to adjust, and in the meantime, hawkers may not be so willing to adjust their prices so quickly in case they get hit by a sudden increase in, say, oil prices, because certain things are volatile.”

    Mr Varathan said that because of this buffering effect, the public may not feel the price drop immediately. Instead, prices are likely to continue rising in the medium term, just at a slower pace.

     

    Source: www.channelnewsasia.com