07/04/2026
Are some people in Phnom Penh living in poverty, or is everyday life simply becoming more expensive? Across social media, comparisons between Cambodia and Singapore have once again gone viral. Many users complain that although incomes remain stubbornly local, living costs are starting to feel “Singaporean”. Some dismiss this as a matter of lifestyle. People choose premium coffee, dine out more often, and rely on convenience services. Such choices do matter. But they do not explain the whole picture.
For many households, the pressure comes less from luxury than from the basics. Rent, transport, food and utilities already absorb a large share of income, especially for young workers and lower-middle-income earners in Phnom Penh. Affordability, after all, should not be measured by whether people can merely survive until the end of the month. It should be judged by whether their salaries allow them to save, prepare for emergencies and gradually improve their standard of living.
According to job platforms such as BongThom and JobNet, fresh graduates often earn around $250 to $400 a month. Many mid-level professionals still earn below $1,500. Yet recent cost-of-living estimates reported by Cambodiness suggest that a single person in Phnom Penh in 2026 may spend roughly $780 to $1,250 a month, depending on rent and lifestyle. Even allowing for variation in such estimates, the gap between wages and urban costs is hard to ignore.
Regional comparisons reinforce the sense of unease. Numbeo’s 2025 Cost of Living Index places Phnom Penh as the fourth most expensive city in ASEAN, behind Singapore, Phuket and Bangkok. Mercer’s 2024 ranking put Phnom Penh as the second most expensive city in the region. Such rankings are not perfect measures of local hardship, but they do suggest an uncomfortable reality: Phnom Penh is among the region’s more expensive cities, even though incomes of the people remain far lower than in Thailand and vastly below those in Singapore.
Part of the explanation lies in the structure of Cambodia’s economy. The country remains heavily dependent on imports, from consumer goods to fuel and production inputs. That raises costs across the board. Even local goods are often expensive because producers rely on imported materials, face logistical constraints and operate in a relatively small market. As a result, many prices in Cambodia are not far below those in Thailand, Malaysia or even Singapore, despite far lower incomes.
Rapid urban development can deepen the pressure on ordinary households. As cities modernise, rents climb, land becomes more expensive, and everyday services cost more. Wages may rise too, but often not by enough. A young worker who receives a small raise may still find that more of their income is eaten up by rent and food than before. In that sense, growth becomes a trap. The city grows richer and more modern, yet many residents remain stuck, able to survive but unable to save, plan ahead, or feel more secure.
That is why the issue is not inflation alone. Nor is it simply poverty in the traditional sense. The real question is whether Cambodian incomes are strong enough to sustain a decent urban life. When young people can survive but cannot build savings, form families or imagine long-term security, the problem is no longer just economic. It becomes social, political and generational.
Author: Mai
