3 Days To Go ..I Will Start New Working Life In SG

I wish. Still planning on how to make more money. Otherwise wont come to SG. Wanna retire young you know? Dont feel like working until 50-60. Sick of working. Have to face pressure from those people higher rank. Where you working now?

KL.. well here's to an early retirement then

After save money what do you guy want to do?
please give some sample????
use money to find more money but i no idea....

I heard that for those who work in Singapore for not exceeding 6 months would be charged a high tax rate by Singapore government, how much is it? If let's say we take an example of $2000 per month of salary and has worked for 5 months, that would be $2000x5=$10000. How about the tax calculation to this amount?

Yes you are right, those who works less than 183 days will have to pay income tax at a higher rate. But I don't think with $10K annual income you will need to pay. You can find out more from

www.iras.gov.sg

This website is useful. Is the answer get from here? http://www.iras.gov.sg/irasHome/page.aspx?id=1190#resident

Like the example above, worked for 5 months is less than 183 days, so the conclusion will be: this is categorized as non-residence thus neither relief nor rebate can be claimed and has to pay at a flat rate of 15%, $10000x15%=$1500 tax payable.

Am I right with the above conclusion? Perhaps someone can correct it for me?

This post has been edited by jactval: Jun 28 2008, 11:18 AM

You are suppose right but you forget one thing. Who those who earn less than 20k per year does not eligible for tax. So your example does not require to pay tax

Good Luck


Pros
1. Nice and Efficient transportation system
2. Good Pay
3. Efficient Civil Service
4. Lot of Entertainment Available
5. Good growth prospect if u are hardworking


Cons
1. Expensive Food
2. Expensive everything, everything will be x 2.34 for the first few months
3. Expensive lodging
4. X2 workload since u r Malaysian
5. U will start to miss home and will start to compare Malaysia the next time u come home

However,


Based on progressive resident rates, only income more than $20000 p.a has to pay tax.

$1500 VS $0...

Pick the whichever is higher?

I don't agree with your cons.

1. Expensive Food? Tell me how much you pay for 2 meat + 1 vegies economic rice
2. Not really
3. SGD450 for a common room. I thought it's the same if you rent a room in KL? (RM400-500)
4. Not really
5. It depends on the person, I feel uncomfortable to see rubbish everywhere started from msia custom checkpoint.

Almost all things are cheaper in SG than in MY if u don't convert bcos u r earning SGD unless u are going there for holidays..

The only thing that is expensive are properties, education, insurance, road tax and personal income tax... but wth u need these sort of things if u do not plan to migrate over there?

It's all relative.

Properties, if you're eligible for HDB, you can buy new HDB properties of around S$300K as long as your salary is less than 8K per month. I think that's roughly the same consideration as someone in PJ/KL. The CPF withdrawal programs for home purchase are more extensive than EPF, so most people do own flats.

However, all HDB flats and at the end of the day even landed freehold, will return to the govt at some point. The compulsory purchase and enbloc (majority wins) laws are extensive. So, there's very little chance of passing down your property for generation after generation after generation.

Education... it's free as long as you go where you're told ie. don't put up a fight when the ministry tells you that your kids are too dumb to go to uni, and can only qualify for poly or trade school.

Insurance... in what way? Do insurance companies in Malaysia charge lower premiums (in US$ terms) compared to Singapore insurance companies for a US$1,000,000 policy?

Road tax... well, you pay a couple thousand S$ each year... but then a Camry costs S$85000 in Sg, and RM150,000 in Malaysia. The difference will pay for a lot of years of road tax.

Personal tax... Singapore is actually much lower in terms of personal income tax. The progressive rates progress slower and the maximum rate is lower. However they have GST, but that doesn't apply to savings, whereas income tax applies to both savings and expense components of income.

IMHO, there is NO financial downside to working in Singapore compared to Malaysia... in general, unless your circumstances are exceptional. Otherwise, don't worry about the money.

The main considerations to making the move from Malaysia to Singapore will always be your family situation, your attitudes towards the differences in lifestyle in Singapore vs Malaysia and your opinion on the importance 'national' loyalties / pride / politics / equality etc.

This post has been edited by seantang: Jun 28 2008, 01:23 PM

nowadays HDB flats cost around S$300k or more, a common room also cost at least S$600 and above depands where u stay.

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Bro im using Singtel Broadband, they block P2P as well?

I agree with you on this especially culturally. Singaporeans mindset are changing and evolving so much so even the SG Gov also has a tough time adjusting to the pace of ot its citizens, much worse, Netizen. the older generation differs from the way the younger ones do... so For Malaysians, its adaptation to the local and even if you don't, being there, you will some what have to blend in your way.. to accommodate.. whatever, compromises even if you don't like like some already mentioned.

In today's Straits Times, published an article of a survey done by the comsumers association about cheap food options and prices of where to eat (prices range from $1.30 - $4), prices comparison with malls and heartland location.... if you can get a copy of it, you will know, base on Malaysia standard, and dollar for dollar, in fact, food in MY are actually more costly than in SG. Of course, for Malaysian holiday there, it would be costly, but if you earning SG$.... you really have more spending options for the same amount you earn in MY.. Of course, certain things, needless to say due to SG constraints, will never be cheap... However, on the whole you still can make it.. However, based on my grocery shopping experience, you will be surprised that there items sold in SG at some time some where, cost the same or even lower price then sold in MY.... so not all things are really that EXPENSIVE in SG.. really depends on your point of view

This post has been edited by bbmars: Jun 28 2008, 01:59 PM

For properties... in SG u can only use SGD300k to buy only a HDB, not even a condo (provided u r a singaporean..PR can only buy 2nd hand HDB, which is more expensive). In MY you can use RM300k to buy a double storey house..

For education, study a E&E degree will cost around SGD100k min but it will cost only bout RM80k in MY, I am comparing the lousiest degree from a lousiest uni.. for more reputable uni, it will easily cost u more than SGD150k.

For CPF contribution, they will deduct u a max of 20% of ur monthly salary whereas in MY they will only deduct u 11%.... That means u have lesser income to spare.. I noe some will argue that CPF are part of ur savings but to those who noes what NPV means, CPF in SG is a crap.. U can only withdraw ur CPF after u retired at 55 yrs... Hence, i rather obtain my 100% of my salary now than to only obtain my 80% of my salary and the balance 20% after i am 55 yrs... For those who only intend to work there for 4 to 5 yrs to earn some income then afterthat come back to MY to marry, why do u want to put ur CPF in SG which u can only withdraw it after 55 yrs??
This is the reason why i do not want to apply for a PR even i have worked there for 2 yrs...ie once u apply for a PR, u are compulsory to contribute CPF... What a stupid law is that...

This post has been edited by siren: Jun 28 2008, 02:38 PM

You are not comparing apples to apples.

Singapore is a city state with limited land. The standard for housing is a flat. Malaysia's standard is a house. If we use your logic, then 99% of the people in HK, Tokyo, Seoul etc will never be as fortunate as Malaysians because they will never afford houses.

The comparison needs to be how many people can afford to get standard housing. In Singapore, almost everyone can. In Malaysia, we're not quite there yet.

It's quite low for Singaporeans due to the govt tuition grant. Net it is around S$6000 (if I'm not mistaken) for the whole undergraduate course. PRs and foreigners who agree to serve a 3 year bond with a Sg registered company also get the same grant.

CPF is 20% of salary up until a maximum cap of only S$900 a month. Any salary over and above 4500 is CPF free. Max employee portion of CPF is S$10800 a year. You get a tax deduction for CPF contributions, which means the net take home cashflow impact is less.

And if you're talking about staying short term in Singapore, new PRs have the option of only paying very low CPF contribution rates for the first 2 years.

If you don't become a PR, yes, you don't contribute max S$900/mth to CPF, but your employer also doesn't contribute their portion as well. So, you need to do your sums to see if losing the employer's portion is worth it to your individual situation. I've got friends in both camps.

The 55 year old limitation of withdrawals even after giving up PR, is dumb. I fully agree. And it only applies to West Malaysians, not East Malaysians nor any other nationality. But there is a loophole. It applies to Malaysians RESIDING in West Malaysia (not BORN in West Malaysia). That means if you get PR in Australia etc or get your home address in your IC & passport changed to an East Malaysian address, you can withdraw your CPF.

But at the end of the day, it's a moot point if you are deciding whether to work in Mys or Sg. You also can't withdraw your Malaysian EPF before you're 55. So what's the difference between having your money stuck in CPF or EPF until you're 55? Me, I'd actually trust CPF much more than EPF. At least they don't use CPF to bail out failing GLCs or political cronies.

In addition, in terms of pure net cash flow, my Sg after tax salary net of $900 CPF is still more than my Mys after tax salary net of EPF in absolute units (S$ vs RM) due to the fact there is no cap on EPF contribution, and the Mys tax rate is higher than Sg. And when you apply the 2.4X multiplier for exchange rates, the incentive is definitely there.

after save money, do some investment la.. don keep in the bank...interest too low...actually i also dun really know wat to do...currently have one investment linked policy which will only mature after 10 years....so have to wait...

in the mean time, maybe planning to sell insurance....any advice?....dunno how else can earn money

Does not apply to non-resident. If not mistaken, even if u earn less tha 20k perannum, u still have to pay 15% tax. Those who are in SG less than 183days are considered non-residents. So still have to pay 15% regardless how much u earn. How i know..coz kena be4.