Singaporeans often take pride in their stronger currency, assuming it automatically translates to a better quality of life compared to their neighbours.
But is having more dollars in the bank really the same as having more freedom to spend?
That’s the question raised by former Singapore presidential candidate Tan Kin Lian, who recently took to Facebook to share a perspective that challenges a common mindset many Singaporeans hold.
A different way of comparing salaries
In his post, Tan highlighted how many Singaporeans tend to compare their S$3,000 salary to a Malaysian’s RM3,000, feeling they’re clearly better off especially since the SGD is more than three times stronger than the Ringgit.
They overlook one important point,” he wrote.
While the comparison may seem obvious at first glance, Tan argued that the real measure of financial well-being lies not in the numbers themselves, but in what’s left after paying for essentials.
Not how much you earn, but how much you can spend
According to Tan, the high cost of housing and private cars in Singapore eats up a large chunk of people’s income.
After paying for these essentials, many are left with only 20% of their salary or about SGD600 for food and daily expenses.
In contrast, he noted that Malaysians typically face lower costs in these areas, which means they may enjoy up to 40% of their income as disposable spending money despite earning in a weaker currency.
This difference, Tan suggests, gives them more breathing room even if their salary looks smaller on paper.
Same food, different bite out of your wallet
To illustrate the impact, Tan brought up food prices. A meal that might cost RM12 in Malaysia wouldn’t necessarily translate to S$3.50 in Singapore, but instead could be closer to S$8.
When paired with the lower disposable income, even day-to-day necessities like food can become a financial strain, Tan argued, something that both Malaysians and Singaporeans can relate to, just in different ways.
After allowing for the lower disposable income, the Singaporean is likely to struggle with the cost of food, in the same way that the Malaysians have to struggle with higher costs,” he wrote.
However, Tan acknowledged that his opinion was merely his take on the issue, adding that he “could be wrong”.
But whether or not people agree with his math, his post has reignited the age-old debate: when it comes to financial well-being, is it really about how much you earn or how much you actually get to keep?
