Singapore 2025 Recession Study

by | Dec 7, 2025 | Uncategorized | 0 comments

Executive Summary

Singapore’s 2025 GDP growth forecast has been downgraded to 0%-2%, from an earlier projection of 1%-3%, amid escalating global trade tensions, particularly the US-China trade war and US tariffs that placed a 10% flat duty on goods from all countries. Despite the economy growing 4.3% year-over-year in Q2 2025 and avoiding a technical recession, the Ministry of Trade and Industry warns of substantial downside risks.

The city-state’s unemployment rate remains relatively stable at 2.0% (Q3 2025), but job market pressures are mounting. This case study examines Singapore’s current economic situation, future outlook, and provides comprehensive, actionable solutions for individuals, families, and businesses to navigate potential recession scenarios.

Major Singapore-Specific Factors:

  1. No unemployment benefits: Unlike the US/Europe, Singapore has no welfare safety net, making emergency funds even more critical (6-12 months vs 3-6 months)
  2. CPF System: Singaporeans have forced savings but these are restricted, so liquid emergency funds are still essential despite having CPF balances
  3. Higher savings rates: Singapore banks currently offer 6-8% p.a. on savings (vs ~4-5% US), making emergency funds grow faster
  4. SDIC vs FDIC: Coverage is SGD 100k per bank (vs USD 250k in US), requiring deposit diversification
  5. Side hustle opportunities: Tuition is extremely lucrative (SGD 50-150/hour), and gig economy is robust (Grab, Foodpanda)
  6. Cost structure: Housing via HDB is subsidized but still expensive; hawker centres provide affordable food options; car ownership is prohibitively expensive (COE system)

The analysis includes four realistic scenarios showing how different profiles (tech professional, fresh grad, sandwich generation, self-employed) would prepare differently based on Singapore’s unique economic landscape.

Part 1: Current Economic Situation (As of December 2025)

1.1 GDP and Economic Growth

Current Status:

  • Q1 2025 GDP grew 3.9% year-on-year but contracted 0.6% quarter-on-quarter
  • Q2 2025 GDP grew 4.3% year-on-year, reversing Q1’s contraction
  • Full year 2024: 4.4% GDP growth
  • 2025 forecast: 0%-2% GDP growth (significantly lower)

Key Risks:

  • Global trade tensions and US tariff policies
  • Singapore’s trade volume is approximately 3x its GDP, making it extremely vulnerable
  • Manufacturing sector slowdown anticipated
  • Outward-oriented sectors (wholesale trade, transportation, finance) expected to weaken

Real-World Impact: A typical Singapore manufacturing firm that exported SGD 50 million in goods to the US in 2024 now faces:

  • 10% baseline tariff = SGD 5 million additional cost
  • Potential customer shift to lower-cost alternatives
  • Reduced orders leading to production cuts
  • Pressure to reduce workforce or freeze hiring

1.2 Employment and Labor Market

Current Unemployment Rates (Q3 2025):

  • Overall: 2.0% (stable from Q2)
  • Residents: 2.8%
  • Citizens: 3.0%
  • Long-term unemployment: 0.9% (slightly elevated)

Employment Growth:

  • Q1 2025: +2,300 jobs (significant slowdown from Q4 2024’s +7,700)
  • Q2 2025: +8,400 jobs (recovery)
  • Q3 2025: +24,800 jobs (strong rebound)

Retrenchment Data:

  • Q1 2025: 3,590 retrenched (1.5 per 1,000 employees)
  • Q2 2025: 3,540 retrenched (1.4 per 1,000 employees)
  • Q3 2025: 3,500 retrenched (1.4 per 1,000 employees)
  • Main reason: Business reorganization/restructuring (not recession-driven yet)

Vulnerable Sectors:

  • Professional Services: Job losses in Q1-Q2 2025
  • Information & Communications: Hiring freezes
  • Retail Trade: Seasonal workforce reduction
  • Manufacturing: Early signs of slowing demand

Resilient Sectors:

  • Healthcare & Social Services: Continued hiring
  • Financial Services: Stable employment
  • Essential services: Steady demand

Job Vacancy Trends:

  • March 2025: 81,100 openings
  • June 2025: 76,900 openings (decline)
  • Job vacancy-to-unemployed ratio: 1.35 (demand still exceeds supply)

1.3 Inflation and Cost of Living

Inflation Trajectory (2025):

  • January: 1.2% (headline), 0.8% (core)
  • February: 0.9% (headline), 0.6% (core) – 4-year low
  • August: 0.5% (headline), 0.3% (core) – lowest since January 2021
  • September: 0.7% (headline), 0.4% (core)
  • October: 1.2% (headline), 1.2% (core)

MAS 2025 Forecast:

  • Headline inflation: 1.5%-2.5% (average)
  • Core inflation: 1.0%-2.0% (average)
  • 2024 comparison: 2.4% headline, 2.7% core

What This Means:

  • Good news: Cost of living pressure has eased significantly from 2023-2024 highs
  • Bad news: Low inflation suggests weak demand and potential economic slowdown
  • Reality check: While official inflation is low, essential costs (housing, healthcare, education) remain high in absolute terms

Category-Specific Price Changes (September 2025):

  • Food: +1.1% (stable)
  • Housing & Utilities: +0.2% (minimal increase)
  • Transport: +3.4% (highest increase due to car prices)
  • Education: +1.0%
  • Healthcare: +1.4%
  • Recreation: -2.2% (deflation)
  • Household goods: -0.3% (deflation)

1.4 Monetary and Fiscal Policy Response

Monetary Authority of Singapore (MAS) Actions:

  • January 2025: First policy easing since 2020
  • April 2025: Second consecutive easing (reduced SGD appreciation pace)
  • May 2025: Third easing due to “downside risks to economic outlook”
  • Policy stance: Modest and gradual appreciation of SGD NEER

Government Fiscal Measures:

  • Forward Singapore initiative (enhanced support)
  • SkillsFuture Workforce Development Grant (WDG)
  • SkillsFuture Jobseeker Support: Up to SGD 6,000 over 6 months for involuntarily unemployed
  • Career Health SG: Free career guidance and job matching
  • Enhanced paid parental leave
  • Grants for first-time homebuyers
  • Additional transfers for low-income retirees
  • Cumulative fiscal surplus FY2021-FY2024: SGD 1.8 billion (provides buffer for stimulus)

IMF Assessment (May 2025):

  • Growth projected at 1.7% for 2025
  • Downside risks “firmly tilted” due to trade tensions
  • Singapore has “ample fiscal space” for additional support if needed
  • Recommendation: Further monetary easing in near term

Part 2: Future Outlook and Scenarios (2025-2026)

2.1 Base Case Scenario (40% Probability): “Muddling Through”

Assumptions:

  • US tariffs remain at current 10% baseline but no further escalation
  • US-China trade tensions stabilize (no full trade war)
  • Global demand weakens but doesn’t collapse
  • Singapore GDP grows 1.0%-1.5% in 2025

Impact on Singapore:

Employment:

  • Unemployment rises gradually to 2.5%-3.0% by end-2025
  • Retrenchments increase to 5,000-6,000 per quarter
  • Hiring freezes widespread in MNCs and outward-oriented sectors
  • Wage growth moderates to 2%-3% (below inflation in some years)

Sectors Affected:

  • Manufacturing: -2% to 0% growth (vs +5% in Q1 2025)
  • Wholesale Trade: Significant slowdown
  • Professional Services: Continued job losses, especially in consulting, legal
  • Finance: Trading activity down, wealth management under pressure
  • Technology: Selective hiring, focus on AI/critical roles only

Household Impact:

  • Middle-income families feel squeeze as bonuses cut 20%-40%
  • Consumption drops (less dining out, postponed big purchases)
  • Housing market softens (15%-20% decline in transaction volume)
  • Rental yields compress as demand weakens

Real-World Example: The Lim Family – Tech Professional, Age 38

  • 2024 total compensation: SGD 180,000 (base: SGD 120k, bonus: SGD 60k)
  • 2025 scenario: Bonus cut to SGD 30k (total: SGD 150k, -16.7%)
  • Monthly impact: -SGD 2,500
  • Response: Cancel family holiday (save SGD 8,000), reduce helper hours to part-time (save SGD 600/month), cut enrichment classes for kids (save SGD 500/month)

2.2 Adverse Scenario (35% Probability): “Shallow Recession”

Assumptions:

  • Trade war intensifies; US imposes additional sector-specific tariffs
  • China retaliates, disrupting supply chains
  • Global recession hits major economies (US, EU, China)
  • Singapore GDP growth: -0.5% to +0.5% (technical recession possible)

Impact on Singapore:

Employment Crisis:

  • Unemployment spikes to 3.5%-4.5%
  • Retrenchments surge to 8,000-12,000 per quarter
  • Fresh graduates struggle to find jobs (12+ months job search)
  • Mid-career professionals (35-50 years old) face ageism
  • Re-entry rate post-retrenchment drops to 45%-50% (vs current 60%)

Sectors in Crisis:

  • Aviation/Tourism: SIA, Changi Airport jobs cut 15%-20%
  • Banking: Wealth management advisors laid off as AUM shrinks
  • Property/Construction: Major project delays, worker layoffs
  • Retail: Store closures accelerate
  • F&B: Restaurant closures increase 30%-40%

GDP Breakdown:

  • Manufacturing: -5% to -8%
  • Services: -1% to +1%
  • Construction: -3% to -5%

Fiscal Response:

  • Government activates enhanced support package: SGD 5-8 billion
  • Extension of wage support schemes
  • Rental relief for SMEs
  • Enhanced SkillsFuture credits

Household Impact:

  • 1 in 15-20 Singaporean households experience job loss
  • Household debt distress cases increase 40%-50%
  • Credit card default rates rise
  • HDB mortgage arrears increase slightly (still manageable due to CPF)

Real-World Example: David Tan – Mid-Career Banking Professional, Age 45

  • 2024 compensation: SGD 240,000
  • March 2025: Retrenched as bank restructures wealth management division
  • Severance: SGD 60,000 (3 months base pay)
  • Job search: 8 months (due to age and market conditions)
  • New job found: SGD 180,000 (-25% pay cut to re-enter market)
  • Emergency fund: Depleted SGD 40,000 (burned through 5 months’ expenses)
  • Impact: Had to sell investment property, kids switched from international school to local school (save SGD 40k annually)

2.3 Severe Scenario (20% Probability): “Deep Recession”

Assumptions:

  • Full-blown global trade war; tariffs exceed 25%
  • Supply chain fragmentation accelerates
  • Global financial market turmoil
  • Multiple major economies in recession simultaneously
  • Singapore GDP: -2% to -1% (worst since 2020)

Impact on Singapore:

Employment Catastrophe:

  • Unemployment surges to 5%-6% (highest since Global Financial Crisis)
  • Retrenchments exceed 15,000 per quarter
  • Graduate unemployment hits 15%-20%
  • Long-term unemployment doubles to 1.8%-2.0%
  • Underemployment rises (people taking part-time jobs, gig work)

Sectors Decimated:

  • Manufacturing: -15% to -20% (electronics particularly hard hit)
  • Trade-related services: -10% to -15%
  • Aviation: -25% to -30% (reminiscent of COVID impact)
  • Hospitality: -20% to -25%
  • Professional services: -15% to -20%

Financial System Stress:

  • Non-performing loans increase to 3%-4% (from <2% currently)
  • SME loan defaults surge
  • Property market correction: 15%-25% price decline
  • REIT distributions cut 20%-40%

Government Emergency Response:

  • Major stimulus package: SGD 15-20 billion
  • Direct cash transfers to households
  • Enhanced unemployment support (extends to 12 months)
  • Mortgage relief programs
  • Utility bill subsidies
  • GST voucher top-ups

Household Impact:

  • 1 in 8-10 households face job loss
  • Household savings rate drops as people burn through reserves
  • Consumption collapses (only essential spending)
  • Mental health crisis emerges (stress, depression from financial hardship)

Real-World Example: The Wong Family – Sandwich Generation, Age 52

  • Pre-crisis income: SGD 144,000 (both spouses working)
  • Crisis impact: Husband retrenched (lost SGD 96k income), wife’s salary frozen
  • Remaining income: SGD 48,000
  • Fixed obligations: HDB mortgage SGD 2,000/month, parents’ support SGD 1,000/month, kids’ education SGD 1,500/month, helper SGD 800/month
  • Total fixed costs: SGD 5,300/month = SGD 63,600 annually
  • Deficit: -SGD 15,600 annually
  • Response: Withdrew SGD 30k from CPF-OA (special provision), sold car (saved SGD 1,200/month), terminated helper, moved to 1-room flat with parents, kids took personal loans for university

2.4 Optimistic Scenario (5% Probability): “Swift Recovery”

Assumptions:

  • Trade tensions de-escalate rapidly (unlikely)
  • US-China reach comprehensive trade agreement
  • Global demand rebounds
  • AI/tech boom accelerates
  • Singapore GDP: 2.5%-3.5%

Impact:

  • Unemployment returns to 1.8%-2.0%
  • Wage growth accelerates to 5%-6%
  • Property market stabilizes
  • Business confidence returns

Note: This scenario has very low probability given current geopolitical dynamics.

Part 3: Comprehensive Solutions Framework

Solution Philosophy

Recession preparedness requires a multi-layered defense system:

  1. Financial fortress: Emergency funds, debt management, insurance
  2. Income diversification: Multiple revenue streams, side hustles
  3. Skill resilience: Continuous learning, adaptability
  4. Network capital: Professional relationships, community support
  5. Psychological preparedness: Mindset, stress management

SOLUTION SET A: IMMEDIATE ACTIONS (Week 1-4)

A1. Emergency Financial Audit (Week 1)

Action Steps:

Step 1: Calculate Your Burn Rate

Monthly Essential Expenses:
- Housing (mortgage/rent + utilities): SGD _____
- Food (groceries, hawker, basic dining): SGD _____
- Transport (MRT/bus or car essentials): SGD _____
- Insurance premiums (cannot cancel): SGD _____
- Loan repayments (required): SGD _____
- Children's education (essential only): SGD _____
- Parents' support: SGD _____
- Helper (if critical): SGD _____

TOTAL ESSENTIAL BURN RATE: SGD _____ per month

Step 2: Identify Non-Essential Expenses

Monthly Discretionary Expenses:
- Dining out/restaurants: SGD _____
- Entertainment/subscriptions: SGD _____
- Shopping (clothes, gadgets): SGD _____
- Holidays/travel: SGD _____
- Enrichment classes (non-critical): SGD _____
- Gym memberships: SGD _____
- Alcohol/cigarettes: SGD _____

TOTAL DISCRETIONARY: SGD _____ per month
POTENTIAL SAVINGS IF CUT 100%: SGD _____ per month

Step 3: Calculate Emergency Fund Adequacy

Current Liquid Assets:
- Savings accounts: SGD _____
- Fixed deposits (breakable): SGD _____
- SSB (redeemable): SGD _____
- Money market funds: SGD _____

TOTAL LIQUID EMERGENCY FUND: SGD _____

Required Emergency Fund = Essential Burn Rate × Months
- Single/DINK: × 6 months = SGD _____
- Family with kids: × 9 months = SGD _____
- Self-employed: × 12 months = SGD _____
- Sandwich generation: × 12 months = SGD _____

GAP: SGD _____ (Surplus or Deficit)

Singapore-Specific Considerations:

CPF as Emergency Reserve: While CPF is generally restricted, understand your options:

  • CPF-OA: Can be used for housing, investments
  • CPF-SA: Locked until 55 (except medical)
  • CPF-MA: MediShield Life and healthcare
  • CPF Medisave: Can be used for approved medical expenses

In severe hardship:

  • CPF Minimum Sum Topping-Up Scheme refund (if you recently topped up)
  • CPF Special Account withdrawal (for housing only)
  • CPF-OA for investment: Consider keeping some accessible through CPFIS

Insurance Audit:

  • MediShield Life: Mandatory, don’t cancel
  • Integrated Shield Plans: Evaluate if you can downgrade to basic coverage during recession
  • Term Life Insurance: Essential if you have dependents, keep active
  • Whole Life/Investment-Linked Plans (ILPs): Consider policy loans if needed, but don’t surrender unless desperate (you lose coverage)
  • Critical Illness: Critical to maintain if you can
  • Hospitalization: Keep basic coverage minimum

Real-World Application:

Case: Sarah Ong, Marketing Manager, Age 32, Single

Current Situation:

  • Salary: SGD 6,500/month
  • Living with parents
  • Savings: SGD 45,000
  • CPF-OA: SGD 60,000

Essential Expenses:

  • Parents’ support: SGD 1,000
  • Own expenses (food, transport, basics): SGD 1,500
  • Insurance: SGD 400
  • Total essential: SGD 2,900/month

Discretionary Expenses:

  • Dining/entertainment: SGD 1,200
  • Shopping: SGD 800
  • Holidays: SGD 500/month average
  • Gym/yoga: SGD 200
  • Total discretionary: SGD 2,700/month

Analysis:

  • Required emergency fund (6 months × SGD 2,900): SGD 17,400
  • Current liquid savings: SGD 45,000
  • SURPLUS: SGD 27,600 ✓

Action Plan:

  1. Sarah is well-prepared for 6-month emergency
  2. Can extend to 15.5 months with current savings (45,000 ÷ 2,900)
  3. Should still cut discretionary spending by 50% now to build even larger buffer
  4. Redirect SGD 1,350/month saved into higher-yield savings (UOB One, OCBC 360)
  5. Target: Build emergency fund to SGD 60,000 (20+ months runway)

A2. Debt Optimization Sprint (Week 1-2)

Singapore’s Debt Landscape:

Average Singapore Household Debt (2024):

  • Housing loan: 60%-70% of total debt
  • Personal loans/credit cards: 15%-20%
  • Car loans: 10%-15%
  • Other: 5%-10%

Action Steps:

Step 1: List All Debts

Create comprehensive debt inventory:

High-Interest Debt (>10% APR):
- Credit Card 1: SGD _____ at _____% APR
- Credit Card 2: SGD _____ at _____% APR
- Personal Loan: SGD _____ at _____% APR

Medium-Interest Debt (5%-10% APR):
- Renovation Loan: SGD _____ at _____% APR
- Car Loan: SGD _____ at _____% APR

Low-Interest Debt (<5% APR):
- HDB Loan: SGD _____ at 2.6% APR
- Education Loan: SGD _____ at _____% APR

TOTAL DEBT: SGD _____
MONTHLY REPAYMENT: SGD _____

Step 2: Prioritize Debt Elimination

Strategy: Avalanche Method (Highest interest first)

  1. Credit Card Debt – PRIORITY ONE
    • Singapore credit card interest: 24%-28% per annum
    • Every SGD 1,000 carried = SGD 240-280/year in interest
    Action:
    • Pay MINIMUM on all other debts
    • Throw ALL extra cash at credit card debt
    • Target: Clear within 3-6 months
    If you have SGD 5,000 credit card debt:
    • At 26% APR: You pay SGD 1,300/year in interest alone
    • If you pay SGD 200/month: Takes 32 months, total paid SGD 6,315
    • If you pay SGD 1,000/month: Takes 6 months, total paid SGD 5,315
    • SAVE: SGD 1,000 by paying aggressively
  2. Personal Loans – PRIORITY TWO
    • Typical rates: 7%-12% APR
    • Consider balance transfer to lower rate
    Options:
    • DBS Balance Transfer: 0% for 6 months (one-time fee 2%-3%)
    • Citibank QuickCash: 6.88% EIR
    • UOB Personal Loan: 7.88% EIR
    Refinancing Example:
    • Current: SGD 20,000 personal loan at 12% APR
    • Refinance to: 6.88% APR
    • Save: SGD 1,024 per year in interest
  3. Car Loan – CONSIDER ELIMINATIONSingapore Reality Check:
    • COE (Certificate of Entitlement): SGD 80,000-120,000 (December 2024 prices)
    • Car loan: Typically 60-70% LTV, 5-7 years
    • Monthly cost of car ownership:
      • Loan: SGD 1,000-2,000
      • Insurance: SGD 150-300
      • Petrol: SGD 300-400
      • Parking: SGD 200-300
      • Maintenance: SGD 100-200
      • Road tax: SGD 60-150
      • TOTAL: SGD 1,810-3,350 per month
    vs Public Transport:
    • MRT/Bus: SGD 120-200/month
    • Occasional Grab/taxi: SGD 200-300/month
    • TOTAL: SGD 320-500 per month
    SAVINGS: SGD 1,500-2,850 per month = SGD 18,000-34,200 annuallyDecision Framework:
    • Keep car if: Essential for work (sales, transport business), have young children/elderly parents requiring frequent hospital visits, living in areas with poor public transport
    • Sell car if: Mainly for convenience, can WFH significantly, kids are older/independent, parents healthy
    Real Example:Michael Chen, Age 42, Banking Professional
    • Car value: SGD 80,000
    • Outstanding loan: SGD 50,000
    • Monthly car cost: SGD 2,200
    Decision: Sell car in recession scenario
    • Proceeds: SGD 80,000 – SGD 50,000 (loan) = SGD 30,000 cash freed
    • Monthly savings: SGD 2,200
    • Annual savings: SGD 26,400
    • Use SGD 30,000 to boost emergency fund
    • New emergency fund runway: +13.6 months
  4. HDB Loan – KEEP PAYING
    • HDB concessionary rate: 2.6% (very low)
    • Do NOT pay extra; keep cash for emergency fund instead
    • CPF-OA can service automatically

Step 3: Negotiate with Creditors (If Already Struggling)

Credit Card Hardship: If you’re already behind on payments:

  • Call bank immediately (before they call you)
  • Request Debt Management Plan (DMP)
  • Typical outcome: Interest waived or reduced, extended payment term

Singapore Credit Counselling:

  • Credit Counselling Singapore (CCS): Free service
  • They negotiate with all creditors on your behalf
  • Consolidate debts into single affordable payment
  • Website: www.ccs.org.sg / Hotline: 6225 5227

Bankruptcy (Last Resort):

  • Singapore bankruptcy threshold: SGD 15,000
  • Consequences: Cannot travel without permission, cannot serve as company director, restricted from certain professions
  • Alternative: Debt Repayment Scheme (DRS) if debt <SGD 150,000

A3. Income Protection Review (Week 2)

Objective: Ensure you won’t face catastrophic loss if job loss or medical emergency occurs.

Insurance Adequacy Check:

Life Insurance (If you have dependents):

Coverage Needed Calculation:
- Outstanding housing loan: SGD _____
- Children's education costs (to degree): SGD _____ (est. SGD 150-300k per child)
- Parents' support (10 years): SGD _____ (e.g., SGD 1,000 × 120 months = SGD 120k)
- Family living expenses (5 years): SGD _____ (e.g., SGD 4,000 × 60 months = SGD 240k)
- Funeral/final expenses: SGD 20,000

TOTAL COVERAGE NEEDED: SGD _____
Current Coverage: SGD _____
GAP: SGD _____

Singapore Term Life Insurance Costs (2024 rates, healthy non-smoker):

  • Age 30, SGD 500k coverage: ~SGD 25-35/month
  • Age 40, SGD 500k coverage: ~SGD 45-65/month
  • Age 50, SGD 500k coverage: ~SGD 110-150/month

Action: If under-insured and budget allows, increase term life coverage NOW before retrenchment (cannot buy after jobless).

Critical Illness Insurance:

Recommended Coverage: 4-5 years of income

Your Calculation:
- Annual income: SGD _____
- × 4-5 years = SGD _____
- Current CI coverage: SGD _____
- GAP: SGD _____

Why Critical Illness Matters in Recession:

  • Medical bills can destroy emergency fund
  • Cancer treatment: SGD 100,000-500,000 (even after MediShield)
  • Heart surgery: SGD 50,000-150,000
  • Stroke rehabilitation: SGD 30,000-100,000

Disability Income:

  • Often neglected but critical
  • Pays monthly benefit if you cannot work due to illness/injury
  • Typical: 50-75% of income up to SGD 10,000/month
  • Cost: SGD 30-80/month depending on age and coverage

Household Emergency Medical Fund: Beyond insurance, set aside:

  • SGD 10,000-20,000 for uncovered medical expenses
  • MediSave: Ensure adequate balance (SGD 20,000-30,000 in MA)
  • Consider: CareShield Life supplement for long-term care

A4. Budget Restructuring (Week 3-4)

Singapore Adapted Zero-Based Budget:

Instead of the American 50/30/20 rule, use Singapore Recession Budget: 60/20/20

  • 60% Needs (essentials)
  • 20% Savings (emergency fund building)
  • 20% Wants (lifestyle, reduced from normal 30%)

For a household earning SGD 10,000/month:

NEEDS (SGD 6,000):

  • Housing: SGD 2,500 (mortgage + utilities)
  • Food: SGD 1,200 (groceries + hawker centers, minimal eating out)
  • Transport: SGD 500 (public transport + occasional Grab)
  • Insurance: SGD 600
  • Parents’ support: SGD 800
  • Helper: SGD 400 (reduced hours or eliminate) Total: SGD 6,000

SAVINGS (SGD 2,000):

  • Emergency fund top-up: SGD 1,500
  • SSB purchase: SGD 500 Total: SGD 2,000

WANTS (SGD 2,000):

  • Dining out (reduce to 1x week): SGD 400
  • Entertainment/hobbies: SGD 300
  • Shopping: SGD 300
  • Children’s enrichment (1 class only): SGD 200
  • Vacation fund (domestic only): SGD 300
  • Miscellaneous: SGD 500 Total: SGD 2,000

Recession Cuts to Implement:

Category 1: Immediate Savings (No Quality of Life Impact)

  • Cancel unused subscriptions (Netflix, Spotify, gym if not used): Save SGD 50-150/month
  • Switch to cheaper mobile plan: Save SGD 20-40/month
  • Use Google Fi, Gomo, or similar: SGD 20/month vs SGD 50-80/month
  • Reduce/eliminate food delivery: Save SGD 200-400/month
  • Cook at home vs eat out: Save SGD 500-800/month
  • Use public transport instead of Grab: Save SGD 300-500/month

Potential savings: SGD 1,070-1,890/month

Category 2: Moderate Impact (Acceptable Trade-offs)

  • Downgrade Integrated Shield Plan to basic: Save SGD 50-150/month
  • Cut kids’ enrichment classes from 3 to 1: Save SGD 300-600/month
  • Postpone annual holiday: Save SGD 4,000-8,000 (one-time)
  • Reduce helper to part-time or eliminate: Save SGD 300-800/month
  • Switch from branded to house-brand groceries: Save SGD 100-200/month
  • Reduce dining out from 2-3x week to 1x week: Save SGD 400-600/month

Potential savings: SGD 1,450-2,550/month + SGD 4,000-8,000 one-time

Category 3: Significant Impact (Last Resort)

  • Sell car: Save SGD 1,500-3,000/month (discussed earlier)
  • Downsize home (rent out spare room): Earn SGD 600-1,200/month
  • Terminate helper entirely: Save SGD 700-1,000/month
  • Pull kids from international school → local school: Save SGD 2,000-4,000/month
  • Move in with parents temporarily: Save SGD 1,500-3,000/month

Potential savings: SGD 6,300-12,200/month

Singapore Food Savings Strategy:

Singapore has incredible food affordability if you optimize:

Hawker Center Mastery:

  • Breakfast: SGD 3-4 (kaya toast + coffee)
  • Lunch: SGD 4-6 (chicken rice, wonton noodles, nasi lemak)
  • Dinner: SGD 5-7 (mixed rice, fish soup, hokkien mee)
  • Daily total: SGD 12-17
  • Monthly (30 days): SGD 360-510

vs Restaurant/Café:

  • Breakfast: SGD 12-18 (café brunch)
  • Lunch: SGD 15-25 (office lunch)
  • Dinner: SGD 20-35 (restaurant)
  • Daily total: SGD 47-78
  • Monthly: SGD 1,410-2,340

SAVINGS: SGD 900-1,830/month by switching to hawker centers

Family of 4 Eating Strategy:

  • Cook dinner at home 5x/week: SGD 200-300/week groceries
  • Hawker lunch on weekends: SGD 30-40/meal
  • Restaurant treat 1x/month: SGD 100-150
  • **Monthly food budget: SGD 1,