We are expensive (?)

Many leading figures of our country always remind us the importance of keeping the labor costs down to maintain the competitiveness of the nation. What they forget to factor in are that why labor costs are much higher in Singapore than the rest of the region : the high cost of living. It's a catch 22 situation - high costs of living -> higher labor costs -> even higher costs of living -> even higher labor costs ->... ... ...

Don't keep lamenting why other countries are able to churn out cheaper labor than us, if you choose to "forget" to compare the differences between the costs of living. Perhaps try comparing the rises of labor compensation vs cost of living in Singapore for the past decade, and you tell me which is growing at a faster pace, then come tell us if we are really that "expensive" labor.