Out of curiosity I checked out the income taxes for both Singapore and Canada in 2007. Based on an income of $120,000, a Singaporean pays tax of 8.25% only, while his Canadian counterpart will pay nearly 30%.
All calculations here are done in the respective countries’ currency (no conversion made).
That’s the reason why high income earners love Singapore.
Well, let’s go deeper into analysis before making a judgment.
A recently graduated software engineer in Singapore can expect to earn about S$2,500 to S$3,000 (if really lucky, and excluding employer CPF contribution). Based on a median of $2,750, that will be an annual salary of $33,000. With bonuses (of approximately 2 months), that will go up to S$38,500. Based on this, income after tax will be nearly $37,700 (2007 effective tax rate of 2.12%). That’s before CPF of course.
The same person in Canada can expect to earn a median salary of 58,276 CAD with bonuses included. After tax, that goes down to 45,987 CAD (2007 effective tax rate of 21.09%).
Singapore has a GST of 5% levied on all purchases, while for Vancouver GST of 5% plus PST of 7% for a total of 12%. However, in BC (not sure for other provinces) food items are tax exempt. So let’s simplify matters and assume that sales tax in Singapore and Vancouver for the average person come down to roughly the same amount eventually.
In terms of healthcare, Singapore does not provide public healthcare insurance, but instead has the optional Medishield program for hospitalization benefits (with deductibles – it is important to note that Medishield does not provide 100% coverage – one would still expect to pay perhaps at least 20 to 30% +++ of the bill depending on certain variables). It’s also important to note that Medishield premiums while low, go up with age, and that it doesn’t cover outpatient treatments. Premiums start at $30 per annum for a young individual, to $700+ for seniors (which makes sense from the insurer’s point of view that the risk for a senior is higher, but does not make any sense from a retiree’s point of view when he has no income but is still expected to pay such high premiums).
In BC, all residents are covered by MSP, which costs $108 a month for a family of 3 or more. Assuming a family size of 4, that would cost $22 a month per individual, or $264 per annum. This covers practically all healthcare needs (including pregnancy and deliveries, I think), with the exception of non-medically required items such as cosmetic surgery and medical examinations for driver’s license, etc. Low income earners can also expect subsidies on these premiums – up to a 100% subsidy for really poor people.
Now, looking at both countries, I believe Canada gives a better deal on healthcare – especially when considering a lifetime worth of healthcare needs – pregnancy, children’s needs, chronic illness, acute care, outpatient care, etc.
Undisputedly, Singapore wins hands down on the lower cost of food and other basic shopping needs. However, I believe that to be primarily a result of no minimum wage requirement – which sucks. No minimum wage benefits high income earners more than lower income earners because the former stand to save more (as they spend more). While lower income earners bear the brunt of this by earning as little as $3 an hour at Macdonald’s (not sure if its gone up already).
Utilities rates (including water, sewage, garbage, recycling, drainage services, etc) costs about $900 per annum in Vancouver per household. Singaporeans pay about $50/month ($600 per annum) for a four-room HDB flat for utilities, excluding water. Water and electricity in Singapore (say for my 4-room flat), costs about $150 ($1,800 per annum). Electricity charges in Singapore are appalling, at 23.88 cents / kWh as at April 2008. This compares to Vancouver’s 6.775 cents… about 3.5 times higher. Assuming a usage rate of about 400 kWh per month, that would cost about $27 a month ($324 per annum). Total for Singapore (water, utilities, electricity) is about S$2,400, while in Vancouver is about $1,200 CAD. That’s about double!
Now, I am sure people will come commenting about how water is expensive in Singapore because we have no natural resources, etc. I do not dispute that, but we are now concerned about cost and it would be out of context to talk about such issues here.
Now, let’s take in account purchase of a vehicle. In Singapore, one can expect to pay about 150% (If I am not wrong) excise duty on imported vehicles (all our vehicles are imported anyway). Let’s not go into specifics, but a Honda Civic in Singapore will cost about $70,000… while the same car costs about $17,000 CAD here. Even after adjusting for currency differences, that’s still more than double! And putting this into perspective – the price premium one pays for a car in Singapore would effectively pay for a couple years worth of income taxes in Canada. Also, add to that the cost of road tax, ERP (toll), etc.
In terms of housing, while Singapore has lower-priced public housing (HDB) available, the cost of a private apartment or house is comparable to that in Canada.
Putting all these together (I am aware there are probably lots of other tangible and non-tangible considerations as well – its not practical nor easy to list everything, but I am certain I’ve at least addressed most of the bread and butter issues already), I still think Singapore is not as worth it compared to Canada, especially after considering the differences that cannot be priced – better quality of life, greenery, fresher air, lower stress, culture, pace of life… etc. Afterall, while some costs in Canada are higher (i.e. food and shopping needs, professional services), big ticket items are either comparable or cost lower than in Singapore.
I hope my observations here will give a different perspective to people who always thought that Singapore has low costs of living, taxes and etc. Because once you add up everything tangible and intangible, you’ll see for yourself the truth.
No related posts.
Thank you for the write up.
Reading this article makes me see things in a clearer perspective, i am a undergraduate seeking to migrate to canada if possible due to the outrageous standard of living that makes it really hard to even marry and afford a home in singapore…
Please continue in your observations, it is very helpful indeed.
Glad you enjoyed it… Canada’s awesome. It’s not cheap, but worth it.
but i remember hearing that the cost of getting a house in vancouver is astoundingly expensive….in comparison to toronto. Not trying to knock you down ( I luv Canada and hope to live there in future), but considering the expensive housing there and fuel cost since most people live in surburbs…will that add up to a lot of money?
Canada is overall a good place to raise children and retire..hence there’s a running joke that canadians go to US (and prolly singapore) for career, but goes back to Canada for retirements.
Thanks for comparison, it’s great. I am a PR in Canada and living in Spore now( being a Sporean). I think life is better in Canada if you want to build a family etc.
Keep updating!:)
[...] came across this post by mrbiao, titled Analysis on Canada vs Singapore, again (Day 94 in Vancouver). His post raised quite a few relevant points that could have just applied to Australia as well as [...]
Hi ,thanks for the info,can I ask what is the normal range for a blue colar worker to work in canada?
Can you reply me to this email address ck_chin318@yahoo.com
missing this comparison:
whats the property tax in Canada vs SG (HDB and private)?
insurance on property?
mortage rate (APR) for property/car?
Wonder how a Canadian fairs in SG? I can give the perspective of a Cdn living in SG…..Need it?
Hey ethan… sure… I would love to hear from a Canadian perspective…
how about if you want to employ a mais to help you with household chores and look after the kids before or after school so your wife can work outside the home?
try paying minimum wage plus benefits and 40 hour work week with breaks and stat holidays etc in Canada – huge sums and not worth it at all!
to have full time help in Singpaore 6 days/week will cost you $1000 Sing/month. it is much easier to raise a family in Singapore than Canada. Even if it means that you get to spend more time with the kids becasue you are not cooking, cleaning, grocery shopping etc but instead enjoying your free time with your family…
My name sayz it all
My name is also ethan!
Being a 2nd generation Canadian, I’d like to point out that there’s a lot more choice of locale than Vancouver and Toronto. They are large cities that are far more expensive than other places in our enormous country. The prairie provinces are cheaper. In Alberta, there’s no PST, just GST. Housing is considerably cheaper all over Alberta than it is in Van. We have far less pollution, and yes, there are a multitude of cultures here, ensuring that your culinary, religious, and clothing preferences will be met.
Thanks immensely for the post. I’ve been invited to visit Singapore for a short while and am unsure if I can hack the heat and the cost.
you’ll probably love singapore if you are coming here just for a few days… good shopping and food options… but that’s just about it.
i’m thinking of applying for graduate programs in U Calgary… so Alberta is definitely on my radar.
Thanks for the insight on the other Canadian options… it certainly helps in my planning!
Avoid the suburbs of Calgary is my father’s advice to anyone thats not accustomed to large masquitoes. This was what he found when he was helping people move to Calgary.
Hi, I wanted to know which Canadian city is good for software jobs. I heard that Nova Scotia is also a good province to settle.
Can you guide me.
Thanks
Krish
Hi mrbiao
i’d like to ask whats the average amount that one must save up in order to migrate to vancouver to live comfortably for about half a year without a job in canada yet.. thanks!
Your comparison of salaries is not accurate because u are using engineers, which are the highest paid occupation in canada/usa. In Singapore, engineers are averagely paid unlike in Canada where they are amongst the highest paid.
lets use waiters, which are more accurate a comparison.
average canadian waiter makes 1.6k CAD a month. after 15% tax, he takes home around 1400 CAD.
average singaporean waiter makes 1.2k SGD a month. but there are no taxes on this. and the employer pays another 12.5% towards his retirement funds aka cpf.
so basically, the take home wages are almost the same. but canada’s cost of living is much higher than singapore, so your money lasts longer in singapore.
this is the reason why singapore is number 4 in the world in terms of real gdp per capita.
Thanks, this is a great and very sound comparison Mr Biao..
I’d like to know which province in Canada is good for high tech electronics industry jobs. I heard Vancouver or Toronto, is a good place for an interesting social scene as well.
Could you advise me.
Thank you,
stynium@yahoo.com
Bernie
hi
Thank you. It is such a useful information .By profession i am teacher and my husband is web designer i am confuse between two country Singapore and Canada Just i want to know that which country is better for teacher and web designer where we get good money.
Don’t want to “pour cold water”, but there’s no such thing as good money, even in Canada. Your pay rate is probably higher in Canada, but you also pay more in taxes (both income and sales taxes). I suggest you consider other qualities like Standard of Living, Cost of Living, government support, and don’t forget your 4 Fs: Family, Friends, Food, Fun! I think Singapore is more fun, but I felt Canada is a better place for the kids.
Just a word of caution..I have heard about this in a while now, but employers in Canada wants to hire people with Canadian Experience…crazy policy, I’m not sure if they have loosen up on that, but just be prepared.
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What is the immigration law in the US and Canada? So if I pay $200 I will get a work visa, guaranteed? Unskilled worker getting paid $22/hr? You can get me a work visa if a foreign guy comes in to work as a driver? It’s amazing that the employer in US and Canada cannot find any locals who can drive.
[...] the full article here. His reasons for leaving Singapore here. This entry was posted in Canada Visa Application. [...]