A Guide to Living and Working as a Foreigner in Singapore

In 2020, there were about 2.52 million immigrants in Singapore. Expatriation to Singapore is motivated by the country's attractive tax system, a host of international schools and job opportunities, and smart immigration policies. Plus, the country is also known for its dynamic culture.

As such, Singapore has consciously created a welcoming environment for foreigners, making it relatively easy to live, work, and even set up a business here. However, the country is also known for its high cost of living – ranked as the 8th most expensive location in the world and 2nd in Asia.

In fact, Singapore expats are currently feeling the pain of high home rental prices. Thankfully, these expatriates can seek financial assistance, such as a foreigner loan, to alleviate their financial burdens. Here, we will talk about what it's like working and living in Singapore.

Working

• Immigration Laws and Visa Requirements for Foreigners: The two most common types of work permits are the Employment Pass for professionals, managers, and executives, and the S Pass for mid-level skilled staff. To apply for these, you must have a job offer in Singapore and meet certain salary and qualification criteria. You can find comprehensive information here.

• Registering for Healthcare and Social Security: All residents, including foreigners, can access public healthcare services. Singapore citizens and permanent residents are subscribed to a medical insurance plan known as Medishield Life. For most expats, their employers provide private health insurance as part of their employment packages.

In terms of social security, the Central Provident Fund (CPF) is a mandatory savings plan for Singaporeans and Permanent Residents, but it does not apply to foreigners on work passes. However, employers are required to provide work injury compensation insurance for all employees.

• Understanding Taxes and Employment Laws in Singapore: Singapore follows a progressive income tax system, with rates ranging from 0% to 22%. Foreign employees (non-residents) are subject to tax at a flat rate of 22% (24% from the year of assessment 2024). You can learn more about taxes here.

Employment laws are well-regulated in Singapore. The Employment Act is the country's main labour law and provides the basic terms and working conditions for all types of employees. Read more about it here.

• Good Expat Salary in Singapore: A good expat salary in Singapore can vary greatly depending on your industry, position, and personal qualifications. However, the median monthly income in Singapore was S$5,070 in 2022.

Living

As a foreigner working and living in Singapore, you can expect to experience a high standard of living, rich cultural diversity, and a safe and clean environment. But to enjoy these benefits, you'll have to afford the high cost of living.

Here's an overview of how much you can expect for basic necessities. Note that these are just estimated costs and will vary depending on several factors.

Tips for Budgeting and Managing Expenses

• Track Your Spending: Keep a record of your daily expenses to understand where your money goes. You can use apps to make it easier to keep track of your expenditures.

• Save on Groceries: Shopping at local markets can often be cheaper than supermarkets. Plus, consider buying store brands and looking out for discounts and promotions.

• Public Transport: Singapore has an excellent public transportation system, such as buses and MRTs. Even Grab rides are more affordable than paying for monthly car loans. Using public transport instead of owning a car can save you a significant amount of money.

• Cook at Home: While Singapore has a diverse food scene, eating out often can take a toll on your finances. Cooking at home is a good way to save money.

Housing

Options vary from renting a government-subsidized Housing and Development Board (HDB) flat, to sharing an apartment, or even exploring modern co-living spaces which offer a sense of community and additional amenities. 

However, if you are a foreigner living in Singapore, you can only buy private housing types:

• Privatised EC (ECs more than 10 years old)

• Private condos

• Landed properties in Sentosa Cove

• Landed properties but with permission from Singapore Land Authority (SLA)

You can buy public housing, such as BTO if you apply with a Singapore Citizen.

Despite being a densely populated country, Singapore offers a range of housing options to suit different needs and budgets, although it's important to bear in mind that housing can be quite expensive here.  To help in your search for the ideal home, a number of property websites, including PropertyGuru, 99.co, and Ohmyhome, provide extensive listings and valuable insights into the housing market in Singapore.

Culture and Language in Singapore

Singapore is known for its harmonious blend of diverse cultures and languages. The city-state recognizes four official languages: English, Mandarin, Malay, and Tamil. Most Singaporeans are bilingual and proficient in English, making it convenient for foreigners to communicate.

Because of the diversity in culture and traditions, it's crucial to respect local customs and traditions. Here are a few examples:

• It's customary to remove shoes before entering a home or temple

• Avoid public displays of affection.

• Muslim Malay women may not wish to shake someone's hand in greeting.

• It is currently illegal for men to engage in homosexual acts in Singapore

• Since Malay people are predominantly Muslim, they will serve halal food at a meal and no alcohol is consumed.

Respecting both the diverse and local customs is part of what makes living in Singapore a unique and enriching experience.

Food and Entertainment

Singapore is a gastronomic paradise, renowned for its diverse and delectable food offerings that span from affordable hawker center stalls to high-end fine dining restaurants. The country's multicultural roots are reflected in its cuisine, offering a plethora of flavors and dishes to explore. Must-try dishes include:

• Hainanese chicken rice, a comforting dish of poached chicken and fragrant rice

• Laksa, a spicy noodle soup

• Chili crab, a seafood delight smothered in a sweet-spicy sauce.

Dietary preferences are well catered for, with a wide range of vegetarian and halal options readily available throughout the city.

As for entertainment, Singapore offers an extensive range of options that cater to various interests.

• Shopping enthusiasts can explore the myriad of shopping centres, malls, and boutiques

• Vibrant night scene of bars and clubs

• Parks like the Botanic Gardens and Gardens by the Bay

• Attractions such as Universal Studios Singapore offer thrilling experiences for all ages.

Singapore also hosts several high-profile cultural events annually, such as the high-octane Singapore Grand Prix for F1 enthusiasts, and the Singapore International Film Festival.

Closing

From its robust economy and efficient infrastructure to its vibrant entertainment options, Singapore offers an enriching and comfortable living experience. While the cost of living and navigating new cultural diversities may pose challenges, with the right preparation and understanding, living and working in Singapore can be an incredibly rewarding adventure.

Key Takeaways:

• Foreigners need an Employment Pass (for professionals, managers, and executives) or an S Pass (for mid-level skilled staff) to work in Singapore.

• Most expats will be provided with health and medical insurance by their employees.

• The tax rate for foreign employees is 22% (24% from the year of assessment 2024).

• Rental costs in Singapore are around $700 to S$3,500 per month, depending on the type of property, its size, and its location.

• Being away from your home country can present financial changes. As such, foreigners living in Singapore can apply for foreigner loans to help alleviate their financial strains.