Home ownership and job choices: The Singaporean dilemma

The recent announcement of Pfizer’s new S$1 billion plant in Singapore’s Tuas Biomedical Park, expected to create 250 highly skilled jobs, has generated a mixed response.

While the investment is undoubtedly a boon for Singapore’s economy, the choice of location raises significant concerns for potential employees, particularly regarding commute times and the impact on work-life balance.

One commenter aptly noted, “Thanks for the investment. Unfortunately, most Singaporeans wouldn’t want to work in Tuas.”

Having personally worked in Tuas, I can empathize with this sentiment. Even residing on the edge of Boon Lay, a 45-minute commute via public transport to Pfizer’s office in Tuas is the norm, assuming no delays. For those living in the eastern parts of Singapore, this commute extends to a minimum of two hours each way.

Even if one might be paid a 20-30% pay premium, the thought of spending such a significant portion of one’s day commuting is a deterrent. While some companies provide ferry services to the nearest MRT stations, comprehensive transport solutions remain limited to wealthier firms capable of chartering buses across the island.

This scenario underscores a broader issue in Singapore: the intersection of home ownership and job flexibility.

Singapore’s homeownership rate stood at an impressive 89.7% in 2023. While home ownership is a source of pride and stability for many Singaporeans, it also ties them to specific locations. The high cost of vehicle ownership, exacerbated by the Certificate of Entitlement (COE) system, further restricts mobility.

The Singaporean rental market does not make sense for locals, particularly when rent is higher than a mortgage for a flat which they can own and sell. This runs contrary to many countries where renting is more financially viable than buying a property. You wouldn’t expect a local to decide to sell and buy a new flat just because he or she got a new job, would you?

In many countries, a flexible rental market allows workers to move closer to their workplaces, reducing commute times and enhancing job flexibility. However, Singapore’s rental market is not as developed, particularly for locals who often prefer or are financially encouraged to own rather than rent. This preference for ownership, combined with low car ownership rates, limits the ability to seek employment opportunities far from home.

Additionally, heavy and specialized industries cannot be expected to be built in heartlands near neighborhoods. In these cases, employees often live in dormitories or rent a property near their workplace. This practical solution highlights the need for more flexible housing options to support the workforce in industrial areas, which is why these companies end up having to hire foreign labour who would be willing to take up the jobs, despite its location and possibly at lower pay.

The high prevalence of home ownership and the financial burden of vehicle ownership create a unique challenge for Singaporeans. While home ownership offers security and investment benefits, it also imposes constraints on job mobility. This dynamic is particularly evident in industrial areas like Tuas, where long commutes can significantly impact personal time and quality of life.

As Singapore continues to attract international investments and expand its industrial base, addressing these mobility challenges will be crucial. Enhancing public transport connectivity, promoting flexible work arrangements, and perhaps rethinking the balance between home ownership and rental options could provide more flexibility for the workforce.

In conclusion, while home ownership remains a cornerstone of Singaporean society, its implications on job choices cannot be overlooked.

The case of Pfizer’s new plant in Tuas is a poignant reminder of the need to consider the broader impacts of urban planning and transportation policies on the daily lives of Singaporeans.

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