Overview of cost of living in Singapore – (3) Transportation

The cost of living in Singapore is often perceived as so high, but what does it actually entail?

The cost of living in Singapore, often perceived as high, warrants a closer examination, particularly regarding transportation expenses following basic necessities and education costs.

Singapore is a small country, characterized by its diamond shape that stretches longer from east to west. The longest distance can be traversed in about 40 minutes along the highway when traffic is clear, making car ownership less essential due to the extensive public transport network that reaches almost every corner of the country. However, the hot and frequently rainy weather leads many to desire personal vehicles if financially feasible.

To manage traffic congestion and maintain a pleasant environment, the Singaporean government imposes significant barriers to vehicle ownership. Firstly, individuals must purchase a Certificate of Entitlement (COE), which grants the right to own and operate a vehicle for ten years. This auction-based system has seen COE prices soar to as high as SGD 140,000 recently, substantially increasing the cost burden of vehicle ownership.
Additionally, high taxes and import duties contribute to vehicle prices being two to three times higher than in other countries. As a result, owning any vehicle generally requires a minimum investment of around SGD 200,000.

However, recognizing that many citizens cannot afford to own cars, the Singaporean government has developed an excellent public transportation system that remains relatively inexpensive compared to living costs. Moreover, ride-sharing services have been actively promoted to fill the gap between public transport and personal vehicle ownership.

In summary, transportation options in Singapore can be categorized into three main types based on convenience and cost:

1. Personal Vehicle Ownership: As mentioned earlier, this is the most convenient and fastest mode of transportation but also the most expensive.
   • For leasing a vehicle, even the cheapest entry-level models require a budget of at least SGD 2,000 per month when considering lease payments (including insurance), fuel costs, and parking fees.
     
2. Ride-Sharing Services/Taxis: For those who cannot afford to own a car but need one occasionally, ride-sharing services or taxis are viable alternatives.
   • Services like Grab, Gojek, and Tada are prevalent in Singapore. Designated pick-up and drop-off points at buildings make it easy to hail a ride.
   • Pricing is dynamic based on demand; for example, short trips typically start around SGD 8, while rides lasting 15-20 minutes may cost between SGD 15-20. Prices can drop by about 30% during low-demand hours but may double during peak times.
   • Taxi fares are generally similar but often suffer from a lack of rating systems leading to cleanliness issues; many drivers tend to be elderly.
     
3. Public Transportation: The MRT (Mass Rapid Transit) system and buses are well-distributed throughout Singapore, allowing residents to live comfortably without owning a car. However, using public transport sometimes requires more time and effort than one might prefer.
   • Public transport costs are quite affordable; for instance, basic fares using an EZ-Link card start at SGD 1.09 and can go up to around SGD 2 for longer distances. Discounts are available for students and seniors.

Having lived in Singapore for six years without owning a vehicle, I have found transportation manageable. Initially, I faced challenges without a car and felt frustrated by time spent on public transport. However, I have grown accustomed to the relaxed pace of life compared to Korea—where time pressure is more prevalent—and appreciate that I can reach any destination within an hour using public transport due to the country’s compact size. Walking more has also become an unexpected benefit.

In conclusion, transportation costs in Singapore can be summarized as follows: public transport is very affordable; however, personal transportation options are quite expensive.

Next, I will discuss healthcare costs in more detail as there is much more to explore on that topic.