While Singapore may boast a record 14.7 percent economic growth last year, the domestic purchasing power of ordinary Singaporeans has decreased, that it now lags behind the Malaysians, according to an updated version of the authoritative UBS study – “Prices and Earnings”.
In the UBS study, domestic purchasing power is measured by dividing the average annual salary by the total price of a selected basket of goods and services, the higher the figure, the higher one’s purchasing power is.
In the 2009 UBS study, Singaporeans have a low purchasing power of only 39.9 which is only slightly more than Malaysians living in Kuala Lumpur (39.5).
However in the updated study published in August 2010, the order is reversed:
The domestic purchasing power of Singaporeans drop to 38.8, falling behind that of Malaysians (39.3).
Domestic purchasing power is now widely accepted by many economists as a more reliable and accurate economic indicator of prosperity on the ground than GDP which only measures the overall economic output of a nation and disregards the living conditions of its citizens.
The new result is not surprising as rampant inflation has eroded the spending power of Singaporeans while their wages have remained stagnant, caused partly by the relentless influx of cheap foreign workers.
If Malaysians working in Kuala Lumpur have a higher domestic purchasing power than Singaporeans, then Malaysians working in Singapore will surely have much higher disposable income when converted back to Ringgit back home which explains the reluctance of many Malaysian PRs to take up Singapore citizenships, thereby enabling them to enjoy the ‘best of both worlds.’
The shocking findings are not reported by the mainstream media nor the PAP leaders who continue to harp on GDP growth as the sole indicator of their performance to justify their multi-million dollar salaries.
Singapore leaders and diplomats better think twice before taking a jibe at our neighbors for being in a ‘mess’ because of ‘incompetent’ leaders because the Malaysians actually have more spending power than Singaporeans who are supposedly led by the ‘best’ government in the entire universe.
Jamison
