Earning more does not equate to a better future unless… – kopiandproperty.com
Personal Finance 101: Earning more does not equate to a better future unless…
Yes, S$1,800 is equal to RM6,270
A few uncles have mentioned to my parents many times that their children is earning a lot when they work in Singapore. I think it’s amazing if we could earn a currency which is 3.5 times stronger. However, if it’s just SGD1,800 per month, then the story would have to change to how best to make use of this monthly earning versus just about earning a lot versus if working in Malaysia for the same role.
The reason I say so is because just the room rental in Singapore is already 30% of this monthly salary. So, if one is earning S$1,800 it is best
Can S$1,800 per month rise to S$6000 per month then?
Well, median salary in Singapore is S$5,200 in 2023. (Info Source: Smartwealth.sg) In other words, if it rises to S$6,000 many Singaporeans would take up the role first, definitely Malaysians will not be in the queue. Reason is there are many Singaporeans who are earning below S$6,000 per month.
Let me also be very honest on the second reason. As soon as the employer finds that it’s too expensive to continue hiring the Malaysian who’s earning higher and higher for the same role, they would advertise and get another Malaysian who’s currently earning RM2,000 in Malaysia and who’s willing to work for S$1,800 in Singapore. These Singaporean businesses also wants to continue to be competitive versus their competitors. A higher cost is not something they want yeah.
If someone is earning RM6,200 per month…
Just saving 50 percent of this is already RM3,100 per month or RM37,200 per year. Use this amount and invest and if the return is just 7%, then the money would double every 7 years. This is why if anyone who is willing to work hard, save a lot, invest them, then this person would live a comfortable life in the future. Imagine working for 10 years and earning more than someone working for 30 years.
How much do Malaysians working in Singapore usually earns?
Article in channelnewsasia.com “an official study into Malaysians living in Singapore has found that two-thirds of those living and working here earn a gross salary of S$1,500 (US$1,116) to S$3,599 a month.”
“Nearly nine in 10 or 89.4 per cent of them were on full-time permanent contract” Please do read the article in full here: Article in channelnewsasia.com
Then why am I still working in Malaysia?
I think it’s just a personal preference. Also, there’s no limit to the level I could go in the corporate world. In other words, it’s really possible to move up, become a manager, earn more and then move up, become a senior manager and earn more and you get the idea.
It’s also possible to spend less (no need fancy cars, no need fancy restaurants, no need semi-detached landed) and having my wife resigning and becoming a home minister instead. Well, my two kids get their own personal driver, mentor, teacher and mother’s cooking too. Not sure how do I measure this but I think the value is more than the money…
Plus… I currently stay in a 1,743 sq ft condo with full facilities, my wife and I each have our own car (even if just a Proton), my children have been to no less than 5 different countries and over 100 flights and well, the list could go on but I think this is why I am still working in Malaysia.
Why do I encourage people to work in Singapore then?
All these years, if someone were to come to me and say they will be working in Singapore, my first reply is always for them to take care of their finances well. Make sure it’s worth the years they spend there.
Of course, they could also try and become a Permanent Resident in order to get more benefits but otherwise, work there, save the money and invest them. It’s a head start because the currency is 3.5 times higher.
Please do not go there and spend like normal, go watch movies, fancy restaurants, rent at popular neighbourhoods, Happy Hours, fly here and there for vacations (to cheaper countries) and after a few years realised that apart from the fun, the money in the bank is still lacking. That’s a pity if that happened.
Happy understanding that there are always two sides to a coin. Just choose the one you love most and stick to benefiting from it. That’s more important than winning the debate of who is earning more due to the currency difference. Cheers.
Happy deciding.
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