Is Singapore becoming a crypto mecca in the cryptocurrency world? Analyze the reasons behind the phenomenon from five angles

The main overseas cities suitable for cryptocurrency professionals to work and live in are Singapore, Hong Kong, Dubai, San Francisco, and Tokyo. But what are the living costs like in these cities? This article provides a report based on basic data analysis to share with readers.

The article analyses the following aspects:

• Restaurants: Food is a fundamental necessity, making this an important reference point.
• Groceries: Daily necessities are another key standard.
• Transportation: Travel costs are essential for business professionals.
• Housing: Whether renting or buying, housing is a crucial factor.
• Other: Infrastructure, recreational activities, children's education, clothing, etc.

1. Restaurants

Let’s first take a look at restaurants.

Inexpensive Dining

• Beijing: ¥35.00 (approx. SGD 6.51)
• Singapore: ¥75.21 (approx. SGD 14.00)
• Hong Kong: ¥55.71 (approx. HKD 60.00)
• Dubai: ¥79.32 (approx. AED 40.00)
• San Francisco: ¥182.09 (approx. USD 25.00)
• Tokyo: ¥49.73 (approx. JPY 1,000.00)

A key observation here is that San Francisco is the most expensive among the six cities in this category, nearly three times the cost of other cities and five times the cost of Beijing. Singapore, currently a popular choice in the crypto space, is twice as expensive as Beijing, but not overly exaggerated in comparison. Due to Hong Kong’s struggling economy in recent years, consumption levels have remained low, making the cost of living much cheaper than in Singapore. This suggests that Hong Kong is gradually being overtaken by Singapore. The cost of living doesn’t lie – Singapore has grown rapidly in recent years.

McDonald's Fast Food

• Beijing: ¥40.00 (approx. SGD 7.45)
• Singapore: ¥53.72 (approx. SGD 10.00)
• Hong Kong: ¥41.78 (approx. HKD 45.00)
• Dubai: ¥63.46 (approx. AED 32.00)
• San Francisco: ¥87.40 (approx. USD 12.00)
• Tokyo: ¥37.30 (approx. JPY 750.00)

McDonald's is known for its excellent cost control, and its prices are almost the same across all six cities, with only a slight increase in San Francisco. This suggests McDonald's has efficient control over raw materials, rent, utilities, and labour in each city, making it a good “global price benchmark.”

Some possible reasons for this consistency:

• Supply chain optimisation: McDonald's has a highly integrated and optimised global supply chain, which helps maintain a relatively consistent cost structure across countries.
• Currency fluctuations: Global businesses must consider exchange rate fluctuations. McDonald's likely uses various financial tools to hedge against these risks, maintaining stable global pricing. (Similar to the futures hedging used in crypto markets.)

Beer

• Beijing: ¥10.00 (approx. SGD 1.86)
• Singapore: ¥53.72 (approx. SGD 10.00)
• Hong Kong: ¥46.42 (approx. HKD 50.00)
• Dubai: ¥89.24 (approx. AED 45.00)
• San Francisco: ¥50.99 (approx. USD 7.00)
• Tokyo: ¥24.86 (approx. JPY 500.00)

This data shows that beer in Dubai is nine times more expensive than in Beijing. It's also particularly expensive in Singapore, at five times the cost in Beijing. Why?

Possible reasons for the high cost of beer in these areas:

1. Historical and cultural factors:
   Dubai is an Islamic country where Islam, the predominant religion, prohibits alcohol consumption. Therefore, alcohol has always been seen as sensitive and controversial.
2. Policy and regulations:
   
• High taxes: Dubai imposes heavy “sin taxes” on alcohol.
• Sales restrictions: Alcohol can only be purchased in specific locations (usually five-star hotels or specialised stores), and buyers need a special license to purchase alcohol.
• Import restrictions: Strict import regulations and high tariffs further drive up the price.

In Singapore, there are no cultural restrictions, but the government emphasises public safety and social order, so alcohol sales are restricted, and in stores, alcohol is often locked in cabinets. Policies include:

• High taxes: Singapore also levies high consumption taxes on beer and other alcoholic beverages.
• Restricted sales times: Alcohol cannot be sold after 10:30 or 11 p.m. in convenience stores or supermarkets.
• Strict enforcement: Illegal drinking or public drunkenness can result in severe penalties.

Bottled Water

• Beijing: ¥2.21 (approx. SGD 0.41)
• Singapore: ¥8.06 (approx. SGD 1.50)
• Hong Kong: ¥7.59 (approx. HKD 8.18)
• Dubai: ¥4.64 (approx. AED 2.34)
• San Francisco: ¥16.12 (approx. USD 2.21)
• Tokyo: ¥5.76 (approx. JPY 115.79)

Here’s something interesting: bottled water in San Francisco is eight times more expensive than in Beijing, far surpassing the other cities!

Research reveals that this is due to California’s strict environmental laws and tax policies, affecting the cost of bottled water. For example, extra fees are charged for plastic bottle production and recycling, ultimately passed on to consumers. Additionally, being located in a water-scarce region, San Francisco enforces strict water management, which drives up the price of bottled water.

A fun fact: Beijing is the only city where you can’t drink tap water directly, unlike the other cities where tap water is safe to drink. But in Dubai, people still tend to buy bottled water, even though the tap water is technically safe, because it contains high levels of minerals.

2. Groceries

Though grocery data is extensive, there aren’t many surprising points beyond the fact that San Francisco’s prices are 2–3 times higher than the other cities, and at least three times higher than in Beijing. However, it doesn’t reach the extreme seen in Dubai's beer prices.

San Francisco’s higher prices can be attributed to:

• Living costs: As one of the most expensive cities, San Francisco’s real estate, housing, and general goods are all relatively costly. The high cost of living attracts high-income residents, further inflating prices.
• Post-pandemic policies: Global supply chain disruptions and economic measures like quantitative easing may have led to inflation, impacting prices.
• Supply chain issues: The pandemic disrupted global supply chains, driving up transportation costs. San Francisco relies heavily on external resources, so supply chain problems likely had a significant impact on local prices.

In summary, while the pandemic and monetary policies may be factors, other forces also play a role. These intertwined factors created the complex backdrop for San Francisco's 2023 price hikes.

Milk

• Beijing: ¥52.76 (approx. SGD 9.82)
• Singapore: ¥86.58 (approx. SGD 16.12)
• Hong Kong: ¥84.77 (approx. HKD 91.30)
• Dubai: ¥50.97 (approx. AED 25.70)
• San Francisco: ¥43.81 (approx. USD 6.01)
• Tokyo: ¥38.57 (approx. JPY 775.55)

Milk prices in these cities are surprisingly consistent, a refreshing change from the 7–8x disparities seen earlier.

Fruit

• Beijing: ¥7.04 (approx. SGD 1.31)
• Singapore: ¥14.17 (approx. SGD 2.64)
• Hong Kong: ¥14.58 (approx. HKD 15.71)
• Dubai: ¥7.63 (approx. AED 3.85)
• San Francisco: ¥21.93 (approx. USD 3.01)
• Tokyo: ¥18.55 (approx. JPY 373.12)

This data only reflects apple prices. There’s an online rumour that Tokyo’s fruit prices are exorbitant. While Tokyo’s fruit is indeed expensive, almost the highest among these cities, it’s only about twice the price in Beijing.

Cigarettes

• Beijing: ¥30.00 (approx. SGD 5.58)
• Singapore: ¥80.58 (approx. SGD 15.00)
• Hong Kong: ¥64.99 (approx. HKD 70.00)
• Dubai: ¥44.62 (approx. AED 22.50)
• San Francisco: ¥96.51 (approx. USD 13.25)
• Tokyo: ¥28.84 (approx. JPY 580.00)

Cigarettes in San Francisco and Singapore are roughly three times more expensive than in Beijing. On the other hand, cigarettes are cheapest in Japan at only ¥28 a pack. The high cigarette prices in San Francisco and Singapore are partly due to higher living costs and strict tobacco regulations, which increase operating costs in the tobacco industry, ultimately affecting retail prices.

3. Transportation

Many people say taxis are expensive in Singapore, but I don’t feel that way. I believe the main reason is that Singapore is quite small. Even if the fares are high, the farthest you’ll travel by taxi is about 20 km; beyond that, you’re in another country. So, the overall fare isn’t that high.

Taxi Fares

• Beijing: ¥4.83 (approx. SGD 0.90)
• Singapore: ¥8.65 (approx. SGD 1.61)
• Hong Kong: ¥14.94 (approx. HKD 16.09)
• Dubai: ¥9.57 (approx. AED 4.83)
• San Francisco: ¥27.28 (approx. USD 3.75)
• Tokyo: ¥33.61 (approx. JPY 675.92)

The data shows that starting fares in other cities are about double that of Beijing, but the cost per mile varies greatly. Tokyo is the most expensive, at more than six times the fare in Beijing, while Singapore’s fares are only about twice as much. San Francisco remains extremely expensive, ranking second, with fares more than six times those of Beijing.

Petrol Prices

• Beijing: ¥32.75 (approx. SGD 6.10)
• Singapore: ¥58.77 (approx. SGD 10.94)
• Hong Kong: ¥79.51 (approx. HKD 85.64)
• Dubai: ¥23.46 (approx. AED 11.83)
• San Francisco: ¥38.83 (approx. USD 5.33)
• Tokyo: ¥30.13 (approx. JPY 605.87)

Compared to other living costs, petrol in San Francisco is actually quite cheap, even though it's more expensive than in other parts of the U.S. Beijing also performs well in this category.

Several reasons why petrol is relatively cheap in the U.S. include:

• Abundant resources: The U.S. is one of the world's largest oil producers, with substantial reserves of oil and natural gas. This leads to shorter supply chains and lower transportation costs.
• Efficient refining and distribution networks: The U.S. has a highly developed and efficient system for refining and distributing oil, helping to keep costs down.
• Lower taxes: Compared to many other countries, fuel taxes in the U.S. are relatively low, which directly affects retail prices.
• Economic policies: The U.S. government often implements policies to maintain relatively low fuel prices, including the use of strategic petroleum reserves.

Car Prices

• Beijing: ¥160,000.00 (approx. SGD 29,782.78)
• Singapore: ¥966,464.67 (approx. SGD 179,900.00)
• Hong Kong: ¥241,217.32 (approx. HKD 259,800.00)
• Dubai: ¥218,134.22 (approx. AED 110,000.00)
• San Francisco: ¥214,133.50 (approx. USD 29,399.00)
• Tokyo: ¥119,345.43 (approx. JPY 2,400,000.00)

The cost of buying a car in Singapore is extraordinarily high. A car that costs ¥160,000 in Beijing is about ¥966,000 in Singapore. Prices in other cities don’t differ much from each other.

Several factors contribute to the high cost of cars in Singapore:

• Limited land resources: As a small city-state, Singapore has very limited land. To alleviate traffic congestion and environmental pollution, the government imposes high fees to limit the number of private vehicles.
• Certificate of Entitlement (COE): In Singapore, you need to obtain a COE before buying a car. This is an auction-based system, held every two weeks. COE prices are very high, sometimes almost as much as the car itself.
• High taxes and import duties: Singapore imposes high import duties, excise taxes, and other tariffs on cars, increasing the cost of buying a vehicle.
• Vehicle lifespan limit: In Singapore, most cars have a 10-year lifespan. If the owner wishes to continue using the car, they must re-bid for a COE or pay a fee to extend the lifespan.
• High maintenance costs and fuel taxes: The long-term costs of owning a car are also high due to expensive maintenance fees and fuel taxes.
• Lack of local manufacturing: Singapore doesn’t have a domestic automobile industry, meaning almost all vehicles are imported, adding to the cost.
• Policy orientation: The Singaporean government encourages public transport and sustainable modes of transport, like cycling and walking, and thus intentionally makes owning private cars expensive.

4. Housing

Monthly Rent

• Beijing: ¥6,833.33 (approx. SGD 1,271.97)
• Singapore: ¥23,865.69 (approx. SGD 4,442.42)
• Hong Kong: ¥16,775.82 (approx. HKD 18,068.18)
• Dubai: ¥14,208.49 (approx. AED 7,165.01)
• San Francisco: ¥23,723.79 (approx. USD 3,257.11)
• Tokyo: ¥6,934.19 (approx. JPY 139,444.44)

It’s evident that rental prices in Singapore are far higher than in the other cities. Several factors contribute to this:

• The lockdown in Shanghai during the pandemic led many wealthy individuals to relocate to Singapore.
• The Chinese government’s crackdown on cryptocurrencies has driven some crypto enthusiasts to Singapore.
• Additionally, many Hong Kongers have moved to Singapore. Mainland Chinese individuals have inflated the rental and property markets in Singapore, although prices may be stabilising now.

Apartment Purchase Price (per sqm)

• Beijing: ¥10,921.10 (approx. SGD 2,032.88)
• Singapore: ¥13,985.75 (approx. SGD 2,603.34)
• Hong Kong: ¥20,636.62 (approx. HKD 22,226.41)
• Dubai: ¥2,724.09 (approx. AED 1,373.70)
• San Francisco: ¥7,842.05 (approx. USD 1,076.66)
• Tokyo: ¥4,972.37 (approx. JPY 99,992.74)

Apartment prices in Hong Kong are the highest, and both Singapore and Hong Kong have exorbitant property prices for two main reasons:

• Economic conditions: Cities or countries with more developed economies usually have higher property prices. Both Singapore and Hong Kong are financial hubs with highly developed economies, so their property prices are relatively high.
• Land scarcity: In cities with extremely limited land resources (like Hong Kong and Singapore), property prices tend to be higher.

5. Conclusion

From the above, we can draw several conclusions:

• San Francisco is an extremely expensive city to live in. For Chinese individuals, it's not an ideal destination, unless you're ultra-wealthy. For cryptocurrency entrepreneurs, it’s unsuitable due to the high living and labour costs. There’s a saying that illustrates this well: with the same amount of funding, a Southeast Asian startup can operate for 10 years, a Chinese startup for 2 years, and a Bay Area startup for 6 months.
• Hong Kong's cost of living is slightly lower than Singapore's. Hong Kong is experiencing a talent drain, but it's also a good time to move in. Moreover, if you set up headquarters in Hong Kong and place your core team in Shenzhen, efficiency should be the highest.
• Tokyo offers the best value for money. Although Japan is a developed country, its cost of living is far lower than that of Singapore or San Francisco. If you prioritise living comfort, Tokyo is a great option.
• Don't drink alcohol in Dubai.
• Avoid taking taxis in Japan.
• Don’t buy bottled water in San Francisco.
• Don’t buy cars in Singapore.