The biggest pain a budget traveller has is finding good, cost effective accommodation that is also close to the centre of the city and accessible to good public transportation.
I have visited Singapore several times and always prefer to stay at the Hangout @ Mt. Emily.
Any seasoned traveller will know that some of the safest, best equipped and budget accommodation is available through the Hostelling International website, where you can book months in advance paying a token amount of 5 % of the total cost of the stay.
The advantages of Hangout @ Mt. Emily are many and will probably be the subject of another blog post, but the roof is fabulous to enjoy the skyline of Singapore as can be seen from these photographs and yes, the distance of Hangout @ Mt. Emily from Little India MRT is about 850 metres and from Dobhi Ghaut MRT is about 1.1 kilometres or 1100 metres.