An analysis of the UBS study (Part 1): Singapore has the lowest wages and domestic purchasing power among the Asian Tigers
By Eugene Yeo, Consultant Editor
[This article has been viewed 5,570 times as of 8.30pm, 01 Sept 2009]
The worldwide study conducted and released by UBS lately, titled “Price and Earnings 2009″ has some unflattering results for Singapore. (download the study here)
While our economy has the highest GDP (PPP) per capita in Asia at $49,288 according to a World Bank report (source: Wikipedia), our people do not enjoy a quality of life which commensurate with it.
Though we are technically a developed first world country, some economic indictators as shown by the UBS study suggested that Singaporeans are not that better off than those in Third World countries.
Low wages
Singapore has a GDP (PPP) per capita higher than Switzerland, but our wages are way below the Swiss.
The UBS study found that employees in Copenhagen, Zurich, Geneva and New York have the highest gross earnings. With its extremely high gross wages and comparatively low tax rates, Switzerland is a very employee-friendly country.
The net wages used have been deducted for taxes and social security.
Zurich and Geneva have wage indices (gross) of 119.8 and 107.5 respectively. In contrast, Singapore has a wage index of only 31.3, comparable with Moscow (30.9), Tallinn (28.7) and Johannesburg (26.7).
In the Asia-Pacific region, it is exceeded by Tokyo (83.0), Sydney (74.1), Auckland (44.1), Hong Kong (42.3), Taipei (35.5) and Seoul (32.3)
Low domestic purchasing power
Where does an average income buy the most products and services? Wages alone do not determine the standard of living in a particular city or country.
A better way to measure prosperity is to divide the average annual salary by the total price of a selected basket of goods and services (as used in the UBS study). This tells us how much purchasing power local wages.
Again, Zurich (106.9), Sydney (95.9) and Luxembourg (95.4) topped the list – its citizens have the highest domestic purchasing power.
Singaporeans have a low purchasing power of only 39.9, comparable to Kuala Lumpur (39.5), Warsaw (34.0) and Bogota (33.7).
Other countries in the Asia-Pacific region which are ahead of us are Tokyo (82.2), Auckland (68.9), Taipei (58.9), Hong Kong (58.1) and Seoul (57.4).
In other words, though the cost of living is higher in Tokyo, the average Japanese has a domestic purchasing power more than twice that of an average Singaporean.
Though Malaysia is still a developing country and has a GDP (PPP) per capita of only $14,215, less than 3 times of ours, the ordinary Malaysian citizen has about the same domestic purchasing power as the Singaporean.
Low relative purchasing power of wages
This is calculated in the UBS study by using a specific, highly uniform product that is available everywhere in the same quality, and then calculate how long an employee has to work to afford it in each city.
For the purpose of this article, the iPod nano (with 8 GB of storage) is used.
An average wage earner is Zurich and New York can buy a nano from an Apple store after nine hours of work. A Singapore worker will have to work three times longer after 27.5 hours.
The figures for selected Asia-Pacific cities are as follows: Sydney (9.5hrs), Tokyo (12hrs), Auckland (16hrs), Hong Kong (19hrs), Seoul (22hrs) and Taipei (23.5hrs). Again we came in last among the 4 Asian Tigers.
Long working hours
People work an average of 1,902 hours per year in the surveyed cities, but they work much longer in Asian and Middle Eastern cities, averaging 2,119 and 2,063 per year respectively.
European cities had the lowest working hours per year. A global comparison showed the people in Lyon and Paris spend the least amount of time at work: 1,582 and 1,594 hours respectively.
Singaporeans spent on average 2,088 hours at work per year with 11 days of vacation.
This is less than Hong Kong (2,295) and Seoul (2,312), but more than Tokyo (1,997), Taipei (2,074), Sydney (1,747) and Auckland (1,884).
Singaporeans also took the least number of holidays after Hong Kongers (10 days/year).
High cost of living
Singapore was ranked the second most expensive place to live in after Tokyo, surpassing Hong Kong for the first time.
Let us compare the food prices in Singapore and other developed countries since food is a basic necessity.
In the UBS study, a basket of 39 food items is put together and weighted mainly according to Western European consumption habits. The average worldwide cost of the basket is USD385.
In Asia, Tokyo topped the list with an index of 124.7, followed by Hong Kong (96.5), Singapore (89.4), Seoul (89.0), Taipei (67.9) and Sydney (66.3)
Conclusion
The high cost of living coupled with low wages and domestic purchasing power condemns the average Singapore worker to an ignonimous, monotonus and stressful working life.
Singapore workers have to work harder to earn the same amount of money and save for a longer period to purchase the same product.
In 1991, then Prime Minister Goh Chok Tong promised Singaporeans that we will be able to achieve the “Swiss standard of living” within a decade. Ten years later, we have a living standard which is closer to Russia than Switzerland.
Like Singapore, the Russians has a low wage and domestic purchasing power and Russia, especially the city of Moscow, has one of the highest cost of living in the world.
In the next part of this article, we shall examine the uncanny similiarities between life in Singapore and Russia after the disintegration of the Soviet Union.
Read also:
>> Part 2: Moving towards a Russian standard of living
>> Part 3: Why Singaporeans are paupers in a first world economy
Other articles by Eugene Yeo:
>> Why should we be grateful to the present PAP?
>> Singapore’s limits: An unthinking and unquestioning citizenry
>> Singapore’s limits: The curse of the GDP
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anyhowlah on Tue, 25th Aug 2009 10:06 am
It’s quite an accurate assessment as compared to papa’s one-sided comparison. Always pick and choose what to compare and present the good side only. Of course not forgetting to placate the public to be content with peanuts (latest HPB advert)
silvir24 on Tue, 25th Aug 2009 10:14 am
this is hilarious. I look forward to the comparison between living in Russia n Singapore.
Swiss Standard on Tue, 25th Aug 2009 11:04 am
Firstly, where is our Swiss Standard of living? By having food like Kueh, Roti-Prata, Nasi Briyani, Mee-Rebus, Chilli Crab – ect.It is call gracefully living. Peanut Goh & Liqour Kill You has said in the past. The Swiss take 300years to have Swiss standard. We only take 30years to create Swiss Standard.
Now they dare not mention about it. Ostrich Hiding This Head in the Sand. “Coward”
TP on Tue, 25th Aug 2009 11:11 am
High prices, low wages — singapore
This is to achieve the so-called competition by having an educated workforce with low wages, thanks to the gov policy.
The ordinary singaporean is like a slave who is free to buy things and live where he likes on this island… if you have the money.
Singaporeans are living much like the
russian novel ‘WE’ by Yevgeny Zamyatin
http://en.wikipedia.org/wiki/We_(novel)
I.SIAO.TING on Tue, 25th Aug 2009 12:03 pm
This is the reason why you won’t be seeing this UBS study EVER in the straits times.
hansolo on Tue, 25th Aug 2009 12:09 pm
This is the link to the UBS study:
http://www.ubs.com/1/ShowMedia/wealthmanagement/wealth_management_research?contentId=170298&name=PreiseLoehne_2009_e.pdf
Lehman Brothers on Tue, 25th Aug 2009 12:27 pm
Lol, the opposition should dig up Goh Chok Tong’s speech from 10 years ago and keep replaying it during the next election. Maybe that will cause people to actually try and find out how deep the rabbit hole actually is.
Tan Yeong Hong on Tue, 25th Aug 2009 12:50 pm
@ Author
You forgot…Slaves who live under the illusion that their HDB is really worth all that toil to pay for.
argh! on Tue, 25th Aug 2009 1:18 pm
Great work.
Fantastic article. Very insightful and i hope it will “open” some ppl’s eyes.(esp those who still think so highly of the senile and his dogs)
mike on Tue, 25th Aug 2009 1:32 pm
the bunch of elites so called ’scholar talented’ who rule and control this tiny little red dot are either….
STUPID, SELFISH, GREED, POWER CRAZY OR BRUNTLY IMCOMPETENT
Odie on Tue, 25th Aug 2009 1:47 pm
Of course we have since then achieve the Swiss Standard of Living promised by Woody. Right now we are living in their Jamban downstairs. Now that is pretty close to the Jamban in their guest’s bedroom.
cy on Tue, 25th Aug 2009 2:02 pm
judging by studies and surveys,Singaporeans are either in hell or heaven. UBS say we are in hell but a survey from 2006 reported in today’ zaobao and CNA says that singaporeans are the most happy ppl in asia. suddenly, we are in heaven.
always take this study/survey with a pinch of salt or else you will go mad thinking which is right.
reader on Tue, 25th Aug 2009 2:03 pm
Great work from Eugene.
On a separate note, recently there has been a speech by NMP Viswa, which has been criticized by MM as being full of “highfalutin ideas”.
http://nmpviswasadasivanmaidenspeech.blogspot.com/2009/08/nmp-viswa-sadasivans-maiden-speech-in.html
The entire transcript of Viswa’s speech is above, but it is rather long, and readers may have trouble or unwillingness in navigating through it. Which would be a pity, as it is really a very good speech in my opinion.
May I suggest that Eugene or Temasek Review do a summary and critique on the main points of Viswa’s speech.
You may also wish to include a critique of MM’s response, and on how it may or may not be a relevant or rational response.
I believe readers of this news portal will be interested in such an analysis.
admin on Tue, 25th Aug 2009 2:25 pm
Hi cy,
The state media uses outdated data in 2006 to mislead Singaporeans.
Acccording to the 2009 Global Happiness Index, Singaporeans are the second unhappiest people in Southeast Asia – so we are actually in hell.
We will be publishing a report on it shortly.
admin on Tue, 25th Aug 2009 2:42 pm
Dear readers,
As part of our continued development to become a full-fledged online news daily, we will be updating our news section pretty often to reach a turnover of 10 articles per day, so please visit our site daily to keep yourselves informed of the latest news (from an independent perspective, of course)
admin on Tue, 25th Aug 2009 3:02 pm
Hi reader,
Maybe you can help us by contributing?
Sink-A-Poor on Tue, 25th Aug 2009 3:16 pm
Singapore has the lowest wages among the Asian Tigers?
Does their study include the wages of the local politicians?
They may end up getting quite a different result.
Highest paid politicians in the WORLD.
Vox Populi on Tue, 25th Aug 2009 4:00 pm
o.O Good point.
Maybe if you minus the expatriates, the PRs, the politicians and CEOs of State-linked and State-owned firms like NTUC. After all Singapore is so small, have a significan non-citizen population and have so little political parties, that these ppl make a significant effect on the study. It may not be a true reflection of the real wages.
Oh yeah forgot to include, purchasing power of an average house. How many years does it take to purchase one? For those who love comparing with rent, maybe comparing the purchasing power of an average House purchaser in other countries?
pathetic on Tue, 25th Aug 2009 4:05 pm
In some kind of macabre satisfaction, I think that Singaporean deserves what they get for voting PAP.
admin on Tue, 25th Aug 2009 4:06 pm
Hi Vox Populi,
The answers to your questions can be found in the study itself. It is extremely detailed.
Really? on Tue, 25th Aug 2009 4:08 pm
I think the study did not take into account of the salaries of our Ministers? If they did, we would be among the highest paid in the world!!!… LOL……
Fairplayplease on Tue, 25th Aug 2009 4:21 pm
@Vox Populi on Tue, 25th Aug 2009 4:00 pm …. greetings…
It is just not the wages. I HATE the fu$king bullsh@t about CPI statistics as cheap to live here. It is a bit like a stupid rat dipping its nose into a pile of human excrement and tells me it smells good.
CPI’s housing component everywhere use “rental equivalence” of mysterious construction and definition. The costs of buying and owning accomodation can rose from S$350k to $600K in a few years but the rental move by same proportion percentage OR IN ABSOLUTE MAGNITUDE OF FINANCIAL BURDEN?????? F$#KING NOT!!!
After committing for a huge mortgage to get into housing accomodation and another huge medical overhang for looking after your aged ( IF NOT YOU ARE AT RISK OF BEING CONDEMNED AS AN UNFILIAL DEVIL OF IMMORALITY OF DUMPING YOUR PARENTS), how much money is left for your kid’s competitive education and putting little food on the table????
The average hardworking Singaporean family knows. THE REAL ISUE IS AFFORDABILITY IN PURCHASING POWER.
This TR piece puts thing in CORRECT PERSPECTIVE but it would NOT sit comfortably next to official rhetoric which is almost always the brother and sister of lies and deceptions preached by MSM.
Am I wrong???
True blue singaporean on Tue, 25th Aug 2009 4:33 pm
When the going gets tough with our government failed policies, people are now starting to wake up to brutal reality. Liked the saying goes “reality bites”! the PAP veil is getting thinner by the day.
TP on Tue, 25th Aug 2009 5:12 pm
Last time, singaporeans voted for PAP
because singaporeans scared if opposition takes over,
what will happen to our national reserves..
Now, singaporeans fed up with PAP
because they lost so much reserves
So people now know, if opposition takes over also
never mind because already so much reserve money lost…
No need to be scared that opposition takes over will ruin
singapore.
Singapore is already decaying… vote who also never mind
singapore has lowest wages and domestic purchasing power among asian tigers. on Tue, 25th Aug 2009 7:09 pm
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Alwin Loi on Wed, 26th Aug 2009 12:14 am
great article, eugene. time to vote out PAP!!!
Vox Populi on Wed, 26th Aug 2009 2:08 am
@admin
Thanks editor for correcting me. I was only reading Table E, I see it is more a true reflection of the average worker than I thought it was. Still a disturbing report otherwise. Well at least the Russians can drown their sorrows in cheaper Vodka. Then again the price comes with more expensive medical bills.
@Fairplayplease
Also with less money with the increased costs due to inflation, I fear our poor’s ability to pay their rent or installment in this economic climate. No wonder people pitch tents in parks.
Our parents brought up this child to a lovely age of 44. Now this child spent away our money on? Yet asks for more?
So shall we send it to the National Council of Problem Gambling?
http://www.stopproblemgambling.org.sg
Extract
“While it’s often not easy to identify who may or may not be a problem gambler, there are some signs that one can look out for.”
# A need to bet more money, and more frequently
# Chasing losses
# Neglecting basic needs like money for food and rent
# Declining work performance
# Pressuring others for money as financial problems crop up
# Lying about how money is spent
# Denying there is a problem
The Singapore Daily » Blog Archive » Daily SG: 26 Aug 2009 on Wed, 26th Aug 2009 11:14 am
[...] are fed up with progress – The Temasek Review: An analysis of the UBS study (Part 1): Singapore has the lowest wages and domestic purchasing power … | (Part 2) – Readings From A Political Duo-ble: Big Mac, Ipod and Singapore.. – My Little Corner: [...]
hahaha on Wed, 26th Aug 2009 5:39 pm
Didn’t Singapore Inc. just bought UBS? What a way to suck up to your boss!
Come on ST, dare you to publish this…
Fairplayplease on Wed, 26th Aug 2009 8:59 pm
@TP on Tue, 25th Aug 2009 5:12 pm…greetings…
To say opposition will lose our reserves is a load of bull and myth perpetuate to frighten voters. I don’t buy that. If and when opposition takes over TH and GIC will still be around – more accountable I supposed of tighter scrutiny of higher performance expected.
Look at the town councils which lost money on the mini-bond screw-up, IT IS NOT POTONG PASIR NOR HOUGANG. Only in PAP-managed wards, is this not correct??
The test of pudding truth is in the eating, not rhetorical fear mongering.
Darkspore on Wed, 26th Aug 2009 9:19 pm
Your conclusion makes sense. PAP doesn’t.
Suzanne on Thu, 27th Aug 2009 1:18 am
I am sorry to say but this is clearly a writer who clearly has no idea what he is talking about and have never been to a third world country. Please try to get your facts right instead of just blowing things out of proportion.
Lehman Brothers on Thu, 27th Aug 2009 7:36 am
@Suzanne:
I find it sad that you have to compare Singapore with 3rd world countries to make the place look good. Singapore isn’t facing the same problems as real 3rd world countries, and the article isn’t even concerned with those. The main comparison being made here is with the other Asian Tigers and Russia, which are not 3rd world countries.
Memo on Thu, 27th Aug 2009 11:22 am
Hmm so shall we all start migrating?
Now that we know our government is doing an EXCELLENT job at what they do! Well done PAP! Today’s UBS result is your success!
What are we working for? « LeeDear on Thu, 27th Aug 2009 11:27 am
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Dave on Fri, 28th Aug 2009 12:10 am
So much for taking face value eh. People start bashing the country, and almost everyone seems to think its accurate. Interesting. Just a question.
How many of us actually spends US$510 of groceries per month. How about around US$2500 of services per month. How many of us actually rents our homes at US$1600 per month.
Please read the article in its entirety lah. It said, to Western European Standards. Since when my local fare become THIS expensive?
Just adding the US$510 + US$2500 = US$3010 which translates to around close to S$5K liao loh? And this exclude cars and transport hor.. Sigh, Singaporeans
Lehman Brothers on Fri, 28th Aug 2009 12:59 am
@Dave:
Dude, do you even know the concept of Purchasing Power Parity?
The food and services prices given in the study are used as a comparison of prices between cities. They are not estimates of the amount that citizens spend per month. In other words, the basket of 39 food items that cost USD 510 in Singapore, you can buy for USD 237 in Kuala Lumpur. The 122 services that cost USD 2434 in Singapore can be bought for USD 2033 in Sydney.
Compared to New York, our wage rate index is at 39.9, while KL is at 39.5 and Sydney at 95.9. Clearly, people in KL earn around the same as us when their cost of living is half of ours, while the cost of living in Sydney is the same as Singapore, but wages are more than twice of ours, which is exactly what the article is saying!! Which part of this do you not understand??
Sigh. People who only believe what’s written in our 147th ranked media.
Singapore has the lowest wages and domestic purchasing power among the Asian Tigers - Salary.sg Forums on Fri, 28th Aug 2009 1:40 am
[...] Singapore has the lowest wages and domestic purchasing power among the Asian Tigers An analysis of the UBS study (Part 1): Singapore has the lowest wages and domestic purchasing power among the Asian Tigers An analysis of the UBS study (Part 1): Singapore has the lowest wages and domestic purchasing power … [...]
UBS PAP on Fri, 28th Aug 2009 4:28 am
real life is much more complicated than a single set of numbers. it is even more dangerous to comment if you don;t understand how the numbers are derived. actually some numbers are laughable, but people just treat it like truth since it comes from UBS, a “reputable” investment bank. to some people, it is their PAP in a way…LOL
Lehman Brothers on Fri, 28th Aug 2009 2:55 pm
@UBS PAP:
Then go ahead and humour the rest of us. Which numbers are laughable? Where are the errors in the methodology used by UBS?
The set of numbers that the government uses is GDP alone. Other indicators are simply overlooked. The UBS study, while not perfect, takes PPP, domestic purchasing power, and wage levels into account. It is clear which one is actually more relevant to the quality of life in Singapore.
UBS PAP on Sat, 29th Aug 2009 6:53 am
1)in the UBS study, a basket of 39 food items is put together and weighted mainly according to Western European consumption habits. The average worldwide cost of the basket is USD385.
what will be the results if chinese food is used as the bench mark?
2) For the purpose of this article, the iPod nano (with 8 GB of storage) is used
this is a easy way to compare, but too easy for an investment bank who deal with instruments themselves don’t even understand
3) Though Malaysia is still a developing country and has a GDP (PPP) per capita of only $14,215, less than 3 times of ours, the ordinary Malaysian citizen has about the same domestic purchasing power as the Singaporean.
isn’t it laughable enough? are you willing to relocate to Malaysia, maybe UBS staff want to.
4) Long working hours
agree
ever wonder why singaporean’s wage is “low” while GDP is “high”?
what is your definition of quality of life? how many ipods you can buy a year? live in a city worrying about breakins? doing business in a country with undertable deals? travel 2 hrs to work? get beaten by yobs? long working hrs?
in the end, make your own decision, if you are happy, stay in singapore and do whatever you like to do, if not, move to Switzerland, or vote out PAP, and vote….who? ask swiss government to take over? LOL
Lehman Brothers on Sat, 29th Aug 2009 8:38 am
@UBS PAP
You said:
“it is even more dangerous to comment if you don;t understand how the numbers are derived”
Now let me show you why this statement is very ironic coming from you.
1. what will be the results if chinese food is used as the bench mark?
Purchasing power is a RELATIVE indicator. If Chinese food were used as the benchmark, the food costs would be divided by the same constant for ALL countries.
Answer: Same results.
2. this is a easy way to compare, but too easy for an investment bank who deal with instruments themselves don’t even understand
The benefits of using iPods have already been stated in the article.
“specific, highly uniform product that is available everywhere in the same quality”
Other items such as Big Macs could be used, but those run into other problems such as quality, different serving portions, etc. The iPod is the same almost everywhere.
Your point?
3. isn’t it laughable enough? are you willing to relocate to Malaysia, maybe UBS staff want to.
The article talks specifically about domestic wages relative to prices, so talking about relocating is irrelevant. One of our ministers did suggest for Singaporeans to go and retire in J.B because it is cheaper though.
4. what is your definition of quality of life?
What do you think Goh Chok Tong was referring to when he said in 1999 that Singapore would have a Swiss standard of living in 10 years? Want to use that definition?
5. in the end, make your own decision, if you are happy, stay in singapore and do whatever you like to do, if not, move to Switzerland, or vote out PAP, and vote….who? ask swiss government to take over? LOL
This “if you’re not happy, then leave” mindset is very sad. Over 50 years of iron-handed rule has left Singaporeans politically apathetic, with many thinking, “hey it could be worse.” But then again, Singaporeans are already leaving, which is why we have a brain drain in Singapore.
admin on Sat, 29th Aug 2009 8:59 am
Hi UBS PAP,
Thanks for your feedback.
FYI, the purpose of this article is not to lampoon the government, but to offer an objective analysis of the UBS study.
1. Do you think Chinese food will cost any less than Western food? Will it cost less in Singapore and more in Switzerland? Is our diet a pure Chinese one or a mixed Chinese/Western diet?
2. Please go and read through the entire UBS study again. The iPod is the latest item used. Previous items include the cost Big Mac.
3. The problem with many Singaporeans like you is that they have a superiority complex. You should go to Malaysia and stay for a few months to experience life there. From personal experience, the Malaysian Chinese generally have a higher standard of living than the average Chinese in Singapore. A contractor in Ipoh works only 4 days a week, live in a 3 storey semi-detached house costing only RM 150,000 and drives 2 cars. You can go and check it out yourself.
4. For many people, quality of life means having adequate work-life balance, enough time to rest, to spend with family and go for long holidays. It is simply not possible in Singapore unless you belong to the elite like Tan Yong Soon who can afford to go for a 1 month cooking course in France.
Many Singaporeans can’t migrate because of family reasons. It’s not so easy to uproot yourself completely and leave for a new, foreign land. However, there are already many Singaporeans who left for Australia, Canada, U.S. and Europe.
Being citizens of Singapore, we have a right to determine the direction we are heading. The government is nothing more than representatives of the people. In a real democracy, the people can always vote in an alternative party to chart a different course like Japan’s DPJ which is poised to take power Unfortunately, we have one single dominant party here which has made use of its incumbency to cripple the opposition. However, no family or party can hold on to power forever. It’s a law of nature and therefore it’s only a matter of time before the PAP is kicked out of office which is definitely more probable than somebody rising from the grave.
Isay on Mon, 31st Aug 2009 12:01 am
Can anyone tell what are the 39 food items (geared towards Western European consumption habits) used in the UBS study ?
Braniac on Fri, 4th Sep 2009 3:37 am
The UBS study is interesting but I think it fails to take into account many other things. Quality of life is made up of many other intangible factors as well, which cannot be quantified or measured. For example:
1) Availability & cost of education – for example, school fees here are pretty low if you think about it. You can study at a top “Ivy League machine” school like RJC for only $15 a month
2) Infrastructure – would you rather live in a city like London, where the tube is overcrowded everyday (a newspaper report i once read said it was worse than cattle trains!) and often breaks down?
3) Cleanliness – Even the Japanese who come here often remark too me how clean it is. Have you ever walked around the streets of London where there is so much chewing gum stuck to the ground, it looks quite disgusting?
4) Weather – Again, i find the weather in most European countries too cold for my liking. But you could also argue that we are too hot and humid
5) Availability of good food – If you love to eat, Singapore might be the best place on earth. The celebrity chef Anthony Bourdain said this in one of his travel shows. And he’s a New Yorker!!
6) Air quality – Think we’re pretty good compared to HK and some parts of China
7) Corruption & discrimination – For example, if you’re a Chinese or Indian, would you really want to live in Malaysia?? What are your chances of being treated fairly in, say, a job selection process or university entrance process??
And, yeah, the basket of 39 items sounds suspect too. i’d sniff at it if it included cheese, since it’s terribly expensive here and i don’t eat it anyway!! :-b
P.S. There are also other factors, which would work heavily against us. For example, lack of space, lack of creative culture, need to do NS, etc. So you see, cannot quantify right??!!
bochup on Fri, 4th Sep 2009 4:05 pm
@ Braniac,
Which part of UBS article do you not understand??? Taking Maslow’s hierarchy of needs, the study talks about the lowest base! i.e food, shelter and wage. in the article, it focuses on PPP, domestic purchasing power etc.. but what you are saying are those intangible like cleanliness, culture blah blah blah..if you really wanna take those into account, it will not be a ‘Price & Earning 2009′ it will be called something else…. m*ron…..
The PAP in crisis (Part 1): An ossified structure lacking an institutionalized system of party renewal : The Temasek Review on Tue, 8th Sep 2009 2:00 pm
[...] >> An analysis of the UBS study (Part 1): Singapore has the lowest wages and domestic purchasing power … [...]
StressedOut on Thu, 10th Sep 2009 2:25 pm
I think there’s many valid questions and good arguments thrown here and each sounds fair but let me ask some questions, hope someone can answer and maybe we can explore things further.
I saw somewhere that mentioned that people in Malaysia has the same PPP as people in Singapore
I think the comparison is between people living in KL to be exact? versus people in Singapore?
Does people living in other Malaysia states, the average Jo earns the same as people in Singapore? I am quite sure although I dont have any prove that an average office clerk in lets say Kelantan will earn less that the same clerk in KL.
What is really the averaged income of an average Jo when u take the entire nation into context?
The price of a branded perfume cost 100SGD in Singapore and 240 Ringgit in Malaysia.
To have the same PPP in this context means an average Jo in Malaysia earns 2400 Ringgit a month versus a 1000SDG singapore Jo
I think the UBS report has some points but it also throws up lots of questions.
I also believe you cannot use the same basket of goods to compare as goods are often sold at different prices in different countries due to things like local manufacturers etc
A western good may be priced cheaper comparatively to the same thing that is sold in another country as that good could be manufactured locally and thus cost cheaper and exported to another country and cost more expensive there
wiseinvestor on Thu, 24th Sep 2009 7:48 pm
The price of an Apple Iphone is 40 Euro dollars in Europe.
What is the price here?