This is partly due to the fact that Singapore is a small island nation with limited agricultural land, which means that a lot of food needs to be imported. As a result, the cost of food and drink in Singapore is much higher than in most other cities.

Singapore consistently ranks as one of the world's most expensive cities due to its unique geographical and economic constraints. As a small island nation with limited land, real estate prices are exceptionally high, which translates to high costs for housing and business operations. Furthermore, Singapore imports almost all of its resources, including food, water, and energy, making it vulnerable to global price fluctuations and adding significant logistics costs. One of the most prominent expenses is the Certificate of Entitlement (COE), a mandatory permit to own a car that can cost over 100,000 SGD alone, designed to curb congestion. Additionally, the government imposes high "sin taxes" on alcohol and tobacco. As of 2026, increased government spending on healthcare and infrastructure to support an aging population has led to further fiscal adjustments, including a higher Goods and Services Tax (GST), which contributes to the overall high cost of living for both residents and visitors.