Simulation: A 30s Engineer Aiming for Asset Building by Moving to Singapore

This article's simulation is a fictional model case

This article is the result of a MoveWorth simulation for a fictional model case. It does not pertain to real individuals or cases. Through this simulation, we explore the potential for asset building if a 30s engineer moves to Singapore.

Persona Setting

In this model case, a 30s engineer who is single is considering moving to Singapore. The goal is asset building, with an annual income of 9,500,000 yen in Japan and 150,000 SGD (equivalent to 17,250,000 yen) in Singapore. The local annual income is based on the simulator's industry-specific reference values (foreign professional standards), and rent, living expenses, and tax rates use the simulator's country-specific preset values.

Comparison of Monthly Cash Flow between Japan and Singapore

In the simulation, the monthly income in Japan is 791,667 yen before tax, with a tax amount of 237,500 yen, resulting in a post-tax monthly income of 554,167 yen. Rent is 140,000 yen, living expenses are 120,000 yen, and monthly savings are 298,750 yen. In contrast, in Singapore, the pre-tax monthly income is 12,500 SGD (equivalent to 1,437,500 yen), with a tax amount of 1,125 SGD (equivalent to 129,375 yen), resulting in a post-tax monthly income of 11,375 SGD (equivalent to 1,308,125 yen). Rent is 3,900 SGD (equivalent to 448,500 yen), living expenses are 1,500 SGD (equivalent to 172,500 yen), and monthly savings are 6,041 SGD (equivalent to 694,715 yen). Monthly income and tax amounts are simple monthly values of the input annual income, and monthly savings reflect the value at the end of the first year of simulation (considering a 2% salary increase rate and inflation rate).

Asset Transition after 5 and 10 Years

After 5 years, the assets if remaining in Japan would be 24,231,237 yen, while moving to Singapore would result in 50,830,073 yen, with a difference of 26,598,836 yen. Furthermore, after 10 years, assets in Japan would be 52,945,335 yen, while in Singapore, they would be 114,288,191 yen, expanding the difference to 61,342,856 yen.

Impact of Taxes, Living Expenses, and Exchange Rates

There is a significant difference in tax rates, with Japan at 30% and Singapore at 9%. Although living expenses are higher in Singapore, even considering the exchange rate (1SGD = 115JPY), favorable conditions for asset building in Singapore are present. However, overseas medical insurance, private medical insurance premiums, private pension and defined contribution pension contributions, temporary return costs, children's education costs (such as international schools), and visa acquisition and renewal costs are not included in this simulation, and actual take-home assets may be less than the simulation values.

Conclusion of the Simulation and Try with Your Conditions

This model case demonstrated that moving to Singapore is highly advantageous for asset building. Try the simulation with your own conditions to find the optimal choice. For more details, please try the simulation here.