UBS: Prices & Earnings Study

Singapore registered one of the highest GDP growth in 2010. Property prices are on a relentless climb upwards, hence many are sitting on assets that are now worth more.

So, are Singaporeans better off?

Below is a comparison of the various aspects from data released by UBS which can be downloaded here .

1. Wage Levels
In 2006, Singapore has a wage level of 38.9 (100 being the benchmark). In 2010, Singapore has dropped to 35.0. This reflects that the wages of Singaporeans have actually decreased over the past 4 years.

2. Domestic Purchasing Power
In 2006, Singapore achieved 54.9 (again, 100 being the benchmark). In 2010, Singapore again dropped to 40.6. Which is a level close to Malaysia (Kuala Lumpur: 40.4).

3. Price Levels
In 2006, Singapore is 62.9. In 2010, Singapore has shot up to the 11 most expensive city at 77.7.

So back to the question, are Singaporeans better off?

• COE prices are closing to previous record levels.
• Inflation has hit over 3% in Nov 2010.
• Effective wage levels are dropping, most likely due to fierce competition from foreigners.
• Many are taking on larger and larger loans to finance their purchases like weddings, property and cars.
• Global demand is driving commodity prices ever higher, basic necessities like food and clothing are getting more expensive.

Is this direction of growth sustainable for the average Singaporean who demands a higher standard of living being a First World city.