# Would I have a decent lifestyle in Singapore with 120k annual salary



## darkwalker

Hi All,

I am from Malaysia. We are family with 3 children. Recently I got an offer in Singapore for IT consultancy field in an MNC. I wonder if what kind of lifestyle would I have in Singapore with 120k annual income excluding bonus. Personal medical expenses are covered but family medical expenses coverage are pretty low. I have the flexibility to work remotely and my job requires me traffic offshore often. May I know if I would be penalized with higher tax if I didn't stay in Singapore above 183 days due to business trip? 
Rental cost are pretty high and wonder if it is worthy to relocate the entire family to Singapore or keeping them aboard in JB or KL are more cost efficient. 

Best Regards
Darkwalker


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## BBCWatcher

"Decent" lifestyle? Of course. That salary is well above Singapore's household median. Unless "decent" has a fairly peculiar definition in your situation.

It's actually a bit tax advantageous if your work takes you out of Singapore for extended periods. Your employer should be covering any higher tax consequences if you're charged foreign taxes in excess of your Singapore tax burden. Make sure that's very clear in your employment agreement, and that the employer provide tax accounting assistance in such circumstances.

The one area of financial concern I have is schooling. You have three children, and it's very expensive in Singapore. That'll be the key issue to investigate in terms of deciding whether to bring your children to Singapore. Note that your spouse may be able to work in Singapore. If my recollection is correct you'll have sufficient income for your spouse to be able to get a DP and Letter of Consent for employment.


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## darkwalker

BBCWatcher said:


> "Decent" lifestyle? Of course. That salary is well above Singapore's household median. Unless "decent" has a fairly peculiar definition in your situation.
> 
> It's actually a bit tax advantageous if your work takes you out of Singapore for extended periods. Your employer should be covering any higher tax consequences if you're charged foreign taxes in excess of your Singapore tax burden. Make sure that's very clear in your employment agreement, and that the employer provide tax accounting assistance in such circumstances.
> 
> The one area of financial concern I have is schooling. You have three children, and it's very expensive in Singapore. That'll be the key issue to investigate in terms of deciding whether to bring your children to Singapore. Note that your spouse may be able to work in Singapore. If my recollection is correct you'll have sufficient income for your spouse to be able to get a DP and Letter of Consent for employment.


Hello BBCWatcher,
Thanks for your advise. My spouse is currently a house wife. May I know what is the benefit for my spouse to have the DP and Letter of Consent for employment? 

May I know if I need to pass my probation period before proceeding to apply credit card? As foreign credit card charges would incur extra currency exchange rate in my daily expenses.


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## BBCWatcher

darkwalker said:


> My spouse is currently a house wife. May I know what is the benefit for my spouse to have the DP and Letter of Consent for employment?


If she wishes to work in Singapore she has that option given your earnings and likely immigration status. That's not guaranteed, but it's a likely option for her if she wishes.



> May I know if I need to pass my probation period before proceeding to apply credit card? As foreign credit card charges would incur extra currency exchange rate in my daily expenses.


Why would you need a credit card? Your employer must reimburse you for all business travel expenses, and your employer may help you get a credit card specifically and only for that purpose. Otherwise, get an ordinary low cost bank account with a debit/ATM card in Singapore. My favorite is currently Citibank's Tap and Save account. That account's Visa debit card is less expensive to use than many/most credit cards.

You may have an initial "startup" period when you need to make payments such as a housing security deposit. Many employers provide relocation assistance and/or otherwise help to make that easier. If not, check into the lowest cost methods to convert Malaysian funds into Singapore dollars in Singapore. As examples, if you have an account with CIMB or Maybank then it might be reasonably inexpensive to withdraw cash from CIMB or Maybank ATMs in Singapore using your Malaysian ATM card. But check the fees and exchange rates carefully. Conversion services for that particular currency pair are very competitive. You might even find that converting cash at the Raffles Change Alley Arcade area is the most inexpensive, though be careful to declare cash if required when crossing the border.


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## darkwalker

BBCWatcher said:


> You may have an initial "startup" period when you need to make payments such as a housing security deposit. Many employers provide relocation assistance and/or otherwise help to make that easier. If not, check into the lowest cost methods to convert Malaysian funds into Singapore dollars in Singapore. As examples, if you have an account with CIMB or Maybank then it might be reasonably inexpensive to withdraw cash from CIMB or Maybank ATMs in Singapore using your Malaysian ATM card. But check the fees and exchange rates carefully. Conversion services for that particular currency pair are very competitive. You might even find that converting cash at the Raffles Change Alley Arcade area is the most inexpensive, though be careful to declare cash if required when crossing the border.


Hello BBCWatcher,
Thanks for your advise. I do have reasonable relocation compensation. Kindly advise if there are anything else which I should be cautious for the employment in Singapore.


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## BBCWatcher

As another example, your Malaysian bank should be able to write a "demand draft" for you which is a check in Singapore dollars drawn on their partner bank (or branch) in Singapore. Check the cost (including exchange rate) to obtain a demand draft from your Malaysian bank. You can then present that Singapore check to, for example, Citibank Singapore to open and fund your account. And it should clear rather quickly.

On edit: Things to be cautious of... Well, remember to save enough to pay your taxes (and remember to file a tax return in Singapore). Try to negotiate a "diplomatic clause" in your apartment lease which gives you some relief if your employer transfers you or otherwise no longer requires your services in Singapore. Consider opening a Singapore Supplemental Retirement Scheme (SRS) account, probably with OCBC, but don't rush into that -- study it carefully first to make sure it makes sense. You'll have until December, 2014, to decide your 2014 contribution.


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## sgporc

Hi Darkwalker,

Your initial questions seemed to be mainly economics based, and what has been covered so far are good procedural and administrative advice. But being that you are from our friendly neighbour country Malaysia, where we are separated by just 1 km of water, I would like to suggest that you should also take more into account your long term plans when coming to a decision.

If I were you, I would ask myself these sort of questions... What are my long term plans? Is this stint just one-off and for a short term only? Am I wanting to seek a new future outside of Malaysia for myself and my family? Am I expecting my family and myself to come back (permanently) to Malaysia in the future?

I am saying all these because your circumstances would be somewhat different from the other expatriate questions that we normally get here in this forum. In fact your nationality would often place you in a much more favourable position when it comes to certain government policies, but in other cases, it may be disadvantageous to you as well. 

An example that I can think of... You may come initially as an employment pass holder, but very soon you would be eligible for permanent residence. Your PR application would be viewed much more favourably than others, but with PR comes obligations. If you have male children, national service for them would be mandatory and this may be a concern for you. Giving up PR for yourself (and/or your family) will affect future employment opportunities in Singapore. PR will also oblige you to pay into CPF, which for Malaysians cannot be withdrawn until 55 yrs of age, even if you say you are leaving permanently. These sort of considerations may be less of a concern for expatriates from afar, because they will be able to more easily say goodbye to Singapore when the time times. But it would be different for us as both our countries' as well as our families' futures will be somewhat inevitably tied and possibly affected due to sheer proximity alone.

Overall, I would say that you are in a very favourable position to make a good decision for yourself and your family. As mentioned earlier you salary is well above the singapore median. You have the option of "staying home" and situating your family in JB (or KL), where commuting to work in Singapore may not be that bad after all, especially since you will be working outstation often. 

Hope this helps somewhat and I wish you all the best in coming to your final decision.

Cheers...


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## darkwalker

sgporc said:


> Hope this helps somewhat and I wish you all the best in coming to your final decision.
> 
> Cheers...


Hello sgporc,
Thanks for your advise especially that part of national service for my children.


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## darkwalker

BBCWatcher said:


> As another example, your Malaysian bank should be able to write a "demand draft" for you which is a check in Singapore dollars drawn on their partner bank (or branch) in Singapore. Check the cost (including exchange rate) to obtain a demand draft from your Malaysian bank. You can then present that Singapore check to, for example, Citibank Singapore to open and fund your account. And it should clear rather quickly.
> 
> On edit: Things to be cautious of... Well, remember to save enough to pay your taxes (and remember to file a tax return in Singapore). Try to negotiate a "diplomatic clause" in your apartment lease which gives you some relief if your employer transfers you or otherwise no longer requires your services in Singapore. Consider opening a Singapore Supplemental Retirement Scheme (SRS) account, probably with OCBC, but don't rush into that -- study it carefully first to make sure it makes sense. You'll have until December, 2014, to decide your 2014 contribution.


Thanks a million for your advise. Employer working on my EP now.


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