I was in Singapore for almost 4 years. 2 years in 1998-1999 and 2003-2005. The difference between these 2 trips is earlier I was bachelor and for the 2nd trip I was married with a Kid.
It is a really beautiful city, well planned and well managed.
Advantages of Singapore over US and other European countries for Indian people who want to work are as follows :
Very near to India (5.5 hours from Mumbai, 4.30 hours from Bangalore ) Hence, if you can afford, you can even manage to come to your Hometown on weekend.
worlds Best Public transport ( No need to buy a car, not need to worry about maintaining. Off course cars are very costly)
Lots of Indian people around, so you feel less homesick, and you can get Indian food easily
Access to all the best things from both the world : East and West
Cost of Living :
Accommodation : You can get a fully furnished 2 bedroom apartment ( HDB) from 800 S$ to 1200 S$ per month. It contains everything you need (Bed, TV, Sofa, Fridge, Washing Machine, Oven etc). If you are a bachelor, you can probably think of sharing it, or go as a Paying guest ( 250 S$- 550 S$ pm ).
Food : There are ample food courts in all the areas where you can get variety of food. For vegetarians it may be little difficult. If you can probably travel to Little India , The place where lots of Indian shops are there, you can get Indian food. It may be little costly. The Average cost for food will be around 200-300 $ pm per person. If you are a family you can save a lot on food. The best thing is cook on your own if possible. Off course, in Singapore, you can test the food from all parts of the world (which may be little costly)
Public Transportation : The best in the world. You can travel by MRT(Mass Rapid Transport ) and Buses. Many MRT stations have bus stations around them. You can buy a EasyLink Card, which will work on both MRT and Buses. You have to show the card at Entry and Exit points at MRT stations and in Buses and the Fare will be deducted automatically. No need to worry. The cost may be around 100 $ pm per psrson.
Taxis : Taxi service is again one of the best. You can either get a taxi on road, or call their number to book. The taxi drivers are very courteous and ready to go even a small distance. The fare starts from 3.50 S$.
Weekend Activities : People in Singapore mostly found in Malls, where they can either do shopping, window shopping or eat in food courts. The Malls are Huge and have everything you need there. You can buy grocery items, catch on the movies, eat and enjoy.
Places to see : If you are a tourist, you have lots of activities to do, probably for a week. But, if you are working there for long term, then probably you end up seeing all these places in short span of time. probably you will have to get visa for Malaysia, Indonesia and plan for a weekend travel.
Lifestyle : although the Western kind of lifestyle, you will find lots of people with traditional Indian, chinese, malay mindset. People are open and have a very good attitude.
Overall, It is a great country to spend 2-3 years.