Households still save more than they spend.
Frequent complaints make it seem like the cost of living in Singapore is beyond manageable. But are Singaporean households really on the brink of hardship?
The CIMB's Cost of Living Survey revealed that 87% of Singaporean households can still save a portion of their monthly income. Outside property expenses, people are spending mostly on basic necessities, cars and
transport, and retirement savings.
Here's more from CIMB:
We think that the idea that households are struggling is not quite right. That people are quoting the last as one of their biggest expense items does not quite gel with the idea of hardship.
Are households overstretching themselves to pay for their properties and cars? Our survey indicates that about 87% can save a portion of their monthly income (13% have no savings). Most manage to stash away
20-50% of their income.
Our results tally with the finding of an MAS 2013 Financial Sector Stability Report, that only 5-10% of the households here breach its total debt-servicing ratio limit of 60%. These are likely to have no savings and are the most at risk financially. But overall, our survey adds another data point to the case that the average household balance sheet is not stretched.
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