ST : S'pore still 9th priciest Asian city for expats

Jun 15, 2010

S'pore still 9th priciest Asian city for expats

SINGAPORE remains Asia's ninth priciest city for expatriates to live in, a spot it has occupied for the past six months, a cost of living survey revealed.

Compared with its ranking a year ago, it climbed one spot in Asia and has jumped six places to 67th position globally over the same period, mainly because of stronger exchange rates.

In taking ninth place, the Republic beat China's Guangzhou and Shenzhen, but was overtaken by Seoul, which climbed 12 places in Asia to reach fifth spot.

Said Mr Lee Quane, regional director of Asia for human resource firm ECA International, which conducted the survey: 'Singapore's rise continues a long-term trend.'

Prices of goods and services commonly bought by expatriates in Singapore have risen faster than those in other developed regional centres, ECA said.

Standard Chartered economist Alvin Liew ties it down to the continued rise in accommodation costs, driven by rental and property prices. 'The increase is faster here with land prices, and with cars, particularly with the prices of certificates of entitlement.'

Also, the Singdollar's strength relative to other currencies in the region has ensured Singapore stayed in the region's top 10 most expensive locations, ECA said.

'The cost of living differential between (Singapore) and Hong Kong has become smaller,' said Mr Lee.

This means it is more costly for companies bringing staff into Singapore.

But those sending staff out of the country will be able to maintain a staff member's standard of living at a lower cost, he added.

It is not just the Singdollar. Currency fluctuations are having the biggest impact on the rankings of Asian countries, ECA said.

For instance, the strengthening of the South Korean won against major currencies has hoisted Seoul and Busan into the top 10 of the Asian rankings, although the won has dipped in the last couple of months.

Tokyo is the most expensive city in Asia and the world, regaining that status for the first time in five years. Its ascent was driven by the continued strength of the yen.

The survey, conducted in March, calculates cost of living allowances for employees assigned around the world. It compiles data on allowances for goods and services consumed by these employees, such as food, drink, tobacco and clothing.

DICKSON LI