Estimated reading time: 14 minutes
Thinking about working in Singapore for that 3x salary boost? It sounds like an exciting opportunity, but have you thought beyond the paycheck? While higher pay is quite attractive, it’s more important to consider the full picture, including aspects like the cost of living, work-life balance, and lifestyle changes.
In this blog, we will explore these often-overlooked factors to help you determine whether the higher salary is truly worth the sacrifices.
TABLE OF CONTENTS
Working in Singapore vs Malaysia
You might be curious about how life in Singapore compares to Malaysia, especially when all people around you have different comments and opinion (good or bad) towards our neighbor country – Singapore. To provide a clearer picture, we will analyze the experiences of two fresh graduates, one working in Singapore and the other in Malaysia. From monthly expenses and career growth opportunities to the benefits they enjoy and challenges they face, this comparison will give you valuable insights into which option aligns better with your priorities and goals.
Salary in Singapore vs Malaysia
Imagine we have Jason who chose to stay, and work in Malaysia as he loves Malaysian food all the time, and there’s Sarah who leave Malaysia for Singapore as she wants to earn that 3x salary and thinks that Singapore foods is just as good.
Since both of them prefer a stable life, they have chosen to work as account executives. Here’s a comparison of their salaries:
- Jason: RM 3,200 per month
- Sarah: SGD 3,200 per month
According to Indeed, a RM 3,200 per month for an account executive in Kuala Lumpur (KL) is actually around the average base salary of RM 3,257. While in Singapore, the average base salary is starts at SGD 3,200 which is what Sarah is earning.
From here, you will notice that the average pay in Singapore is slightly lower compared to Malaysia. However, this makes sense, as every country tends to prioritize its local talent. Therefore, Malaysians working in Singapore will generally earn less than the locals.
Cost of Living
Now that we’ve covered salaries, let’s move on to expenses. We’ll break down both fixed and variable costs by covering the key expenses that form the foundation of our daily life.
Housing/Rental
We always heard that people saying that housing in Singapore is much more expensive than KL. In fact, they’re not much different.
For Jason, since he works in TRX KL (city center), he decided to rent a room in Cheras M Vertica, which is near his workplace where can commute to work everyday. The reason he chose to live there is that, as a fresh graduate with no car, renting a place connected to the MRT and just two stops away from TRX is the most convenient choice.
On the other hand, Sarah works in Raffles Place, but she decided to rent a room in Sengkang, which is a bit far from the CBD where has to commute longer to work. This is because she tend to pay a cheaper rent rather than the sky-high rent in the CBD, which would take up 90% of her salary.
Rental fees for Jason and Sarah:
- Jason: RM 850 per month (inclusive of utilities)
- Sarah: SGD 850 per month (inclusive of utilities)
Transport
Let’s move on to transportation! In Malaysia, RapidKL offers the My50 monthly pass service in Klang Valley. It is an unlimited travel pass that costs only RM50 per month and can be used for the LRT, MRT, KTM, buses, and other public transport options.
Therefore, in Jason’s case, he will definitely get the My50 pass for his daily commute to work. Without this pass, it would cost him roughly RM60 per month just for traveling to work on weekdays. Thus, the My50 pass is essential for him, not only for work but also for personal use.
In Singapore, there is also a monthly pass that costs SGD 128. However, it is only available to Singaporean citizens and permanent residents (PRs). In Sarah’s case, this pass isn’t necessary, as her commute between home and work costs her only around SGD 75 per month. Also, her daily commute takes about 40 minutes to an hour, which is double the time of Jason’s trip. So, this is the trade-off she has to make to save on rent.
Food Cost
When it comes to food, you might notice that food prices in Singapore are actually quite affordable compared to Malaysia, especially if you’ve been there before. However, before we dive into the comparison, it’s important to note that we won’t be converting SGD to MYR, as this comparison focuses on dollar-to-dollar value.
A Filet-O-Fish costs around RM15 in Malaysia, while in Singapore, it’s priced at approximately SGD 7.50. Another example is chicken rice. In Malaysia, it costs RM8 or more, whereas in Singapore, it’s only around SGD 5 or less.
When it comes to groceries, the situation is quite similar. In Malaysia, a basket of essentials like milk, eggs, bread, and chicken breast will easily cost Jason over RM50. In contrast, the same basket of items costs Sarah around SGD 22 in Singapore.
Hence, in this case, we can conclude that Jason ends up paying nearly double for food in Malaysia compared to what it costs in Singapore. If Jason spends RM40 per day on meals, his monthly food expenses would amount to RM1,200. On the other hand, Sarah spends approximately SGD 600 per month on food.
From here, you might wonder why prices in Singapore are cheaper than in Malaysia. This is largely because the Singaporean government has made significant efforts to maintain a strong and stable currency, allowing them to import goods at more affordable prices. If you’re interested in learning more about this, be sure to check out this video!
Miscellaneous
After covering all the key expenses, we shouldn’t overlook the miscellaneous living costs, such as a mobile phone monthly plan, which is essential in our daily lives—especially now that we live in a digital era. Let’s assume Jason pays around RM40 per month for unlimited calls and 120GB of data. If Sarah opts for a similar plan in Singapore, it would cost her roughly SGD 22.
Net Disposable Income
We’ve now reached the point where we calculate the net disposable income for both of them. Assuming they are both single and prefer staying at home most of the time, here’s a rough breakdown of their spending.
At the end of the month, after deducting all the core expenses, Jason is left with around RM1,000, while Sarah has about SGD1,600 remaining. The difference here is clear—Sarah comes out ahead! Moreover, if you convert SGD to MYR, Sarah’s savings would amount to approximately RM5,000, making her financial advantage even more significant!
Is It Worth Leaving Malaysia to Work in Singapore?
However, let’s go back to the main question: is it really worth leaving Malaysia to work in Singapore? While it’s true that food expenses in Singapore are generally cheaper, life isn’t just about food. There are many other factors to consider, especially as you grow older and your priorities and responsibilities change.
Career Growth
Besides food, the factor we place greater emphasis on is career growth. Working in Singapore offers significant advantages, especially since it is recognized as the leading financial hub in Asia. For instance, you’ll have access to more opportunities and greater exposure to high-impact work. Additionally, Singapore’s education system is far more advanced compared to Malaysia, meaning you’ll be surrounded by highly educated and skilled professionals, which can further enhance your learning and professional development.
Not only that, you will also have more opportunities to work with people from diverse backgrounds, as Singapore is home to a large expat community. This, in turn, will enhance your personal growth by allowing you to learn from and gain new perspectives through interactions with individuals from different cultures and experiences.
All of this is easier to achieve if you work in Singapore, as their education system is far more advanced than ours. However, that doesn’t mean it’s unachievable in Malaysia. In fact, it simply means we have a bit more catching up to do.
Owning a House
As a human, as we grow older, we will have an idea of buying house as it is a place where we own and stay when we old. Well, the good news is it is comparatively lower price to buy a house in Malaysia. Oppositely, it is hard to buy a house in Singapore.
This is because property prices in Singapore are extremely high. For instance, condos can easily cost over SGD 1.5 million. With that kind of budget, you could own a spacious landed double-story house in Malaysia. You might think there are more affordable housing options in Singapore, such as Housing and Development Board (HDB) flats or Build to Order (BTO) units, which start at around SGD 300,000. However, there are several restrictions for Malaysians trying to buy these properties.
First, you are required to be a permanent resident (PR) to qualify for these affordable homes. Without PR status, you won’t even be eligible. Second, even if you qualify, you’re only allowed to purchase a resale HDB, which means it’s second-hand rather than brand-new. Unfortunately, resale HDBs are much more expensive, with prices starting around SGD 500,000 or more. Third, to buy an HDB, you are prohibited from owning another property outside of Singapore, which could be a dealbreaker for many Malaysians who already own property back home.
Additionally, if you’re single, there’s another major restriction—you can only purchase an HDB flat after turning 35 unless you are willing to give up your Malaysian IC (identity card) and become a Singaporean citizen or get married to a Singaporean. For those who are younger than 35, an alternative is to simply buy a house in Malaysia, which is much easier and more affordable compared to owning property in Singapore.
Owning a Car
When it comes to vehicles, owning a car in Singapore is significantly more expensive. A budget petrol engine car will easily cost you over SGD 120,000, a stark contrast to Malaysia’s Perodua Bezza, which is priced at just around RM44,000. This massive price difference is primarily due to Singapore’s extremely high Certificate of Entitlement (COE) prices, a system implemented by the government to discourage car ownership and control traffic congestion.
So, if you’re considering owning a car in Singapore for your daily commute, you might want to think twice, as the cost is incredibly high—especially for a Malaysian.
Work-life Balance
Another factor often discussed when comparing Singapore and Malaysia is the culture of work-life balance. If you’ve noticed, quite a lot of Singaporeans come to Malaysia on weekends to relax, shop, and unwind. This is because the working environment in Singapore tends to be much more stressful, with significantly higher work expectations.
As a result, if even the locals feel exhausted from the high-pressure work culture, foreign workers from countries like Malaysia are likely to experience even greater stress. This can be especially challenging when you don’t have friends or family nearby to provide emotional support, making it a tough adjustment.
So, if you’re someone who values a more laid-back lifestyle and prefers a less stressful environment, you’ll know which place suits you better.
Employment Benefits
Lastly, as Malaysians, we definitely enjoy better employment benefits when working in our own country compared to Singapore.
Previously, Malaysians working in Singapore could contribute to and benefit from employer contributions to the Central Provident Fund (CPF). However, starting in 2023, the Singaporean government changed the CPF system to make it available only to Singaporean citizens and permanent residents. This change has forced many foreign workers to plan their retirement funds on their own.
As a result, this shift puts Malaysians working in Singapore at a significant disadvantage, as they lose out on a valuable retirement savings benefit. Therefore, Malaysians working in Singapore have to find alternative solutions, such as contributing to the EPF or applying to become a permanent resident (PR) after working there for six months. To learn more about EPF, feel free to check out this video!
Conclusion
So, the points above are what you need to consider before deciding whether to work in Singapore or Malaysia. Now that you’re aware of the key factors, you can make a more informed decision about which option suits you best. Of course, this is just a starting point—there are many more details to consider, and the decision can be more complex than it seems. But, always remember to choose what aligns best with your own goals and priorities. Every choice comes with its own pros and cons, so embrace your decision and enjoy the journey ahead!
Checkout the YouTube videos for a visual guide to this blog!
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