Moving to Singapore, or anywhere for that matter, is an exciting move! But, it does require a bit of getting used to. One of which is how to navigate your finances in a new country.

Singapore is one of the world’s leading financial hubs, known for its stable economy, business-friendly environment, and strategic location in Southeast Asia. As expats, it’s essential to familiarise ourselves with the following aspects of the economy:

1. Currency and Cost of Living:

   Singapore’s official currency is the Singapore Dollar (SGD). The cost of living can be high, especially in terms of housing, dining, and transportation. As you plan your budget, remember to research typical prices for groceries, utilities, and other everyday expenses. Check out my recent article on Singapore’s cost of living here:

Understanding Singapore’s Cost of Living: A Breakdown for New Expats

2. Income Tax System:

   Singapore has a progressive income tax system, which means that the tax rate increases as your income rises. Fortunately, the tax rates are relatively low compared to many other countries, with no capital gains tax and no inheritance tax. Understanding your tax obligations, including filing dates and deductibles, is crucial to staying compliant and minimising liabilities. Find out more about tax here in Singapore with these articles:

Tax Relief For Foreigners

Why Financial Advice is Better than DIY

Why Should Expats Open an SRS Account?

3. Financial Products and Services:

   Singapore boasts a sophisticated financial services sector. Expats have access to a wide range of banking and investment options. From local banks to international institutions, the choices are plentiful. Familiarise yourself with saving accounts, fixed deposits, and various investment vehicles like mutual funds, stocks, and bonds. It’s always advisable to consult a financial advisor, particularly one who understands the regulations that apply to expats. I wrote an article on this exact topics here:

What Type of Advisor Should Expats in Singapore Work With?

4. Retirement and CPF:

   The Central Provident Fund (CPF) is a government-mandated savings plan for Singaporeans and Permanent Residents, helping them save for retirement, healthcare, and housing. As an expat, you probably won’t be eligible for CPF contributions, but understanding this system can provide insight into Singapore’s approach to financial security. You can however (and do read that article above) opt into the SRS (Supplementary Retirement Scheme). This works similar to CPF but is also open to foreigners, and offers various tax benefits.

5. Insurance:

   Health insurance is another critical aspect of financial literacy. Singapore has a high standard of healthcare, but medical care can be expensive without insurance. Depending on your employment package, you may have health insurance coverage included. Otherwise, be proactive in researching local insurance providers to ensure you have adequate health and life insurance. I always say that having medical insurance through work is good, but you should always have your own as a back-up. You can read more here:

Is Corporate Insurance Enough?

What Makes A Corporate Insurance Good?

Practical Tips for Expats

– Open a Local Bank Account: This simplifies your financial transactions and may offer better exchange rates than foreign accounts.

– Create a Budget: Track your spending to get a clear picture of your financial situation in this new country.

– Educate Yourself: Attend workshops or read financial literacy materials available for expats in Singapore. The more informed you are, the better financial decisions you can make.

– Network: Join expat groups or forums. Fellow expatriates can share valuable knowledge and experiences regarding managing finances in Singapore.

Understanding Singapore’s economic landscape is vital for expats aiming to thrive financially. By familiarising yourself with the local currency, tax system, financial products, and insurance options, you’ll set yourself up for success. As always, seek professional advice when needed, and continue educating yourself on financial matters.