Grace Ng, Straits Times 27 Nov 07;
SINGAPORE has risen 10 places in a new global survey of the most expensive places for expatriates to live.
The Republic is closing the gap on higher-priced Hong Kong, which stayed at No. 79 in the survey, conducted by human resources firm ECA International.
Despite the jump, Singapore, at No. 122, is still significantly cheaper for expats than Hong Kong and other key global centres, such as London at No. 10 and New York at No. 48.
Singapore's rise up the table from No. 132 was the result of rising expat costs such as higher rents, coupled with a stronger Singapore dollar.
In contrast, the Hong Kong dollar, which is pegged to the US dollar, is weakening - offsetting a rise in expat costs.
Singapore is the ninth most expensive Asian city, the survey found. Seoul is the most expensive, at No. 7 in the world. Tokyo dropped from 10th to 13th place, partly due to a decline in the yen.
Top spot went to the African city of Luanda in Angola. Places like this, which are off the beaten track, are more expensive because some expat consumer items are hard to get, and those who want them have to pay top dollar.
The survey compares a basket of 128 consumer goods and services such as groceries, drinks and tobacco, clothing and electrical goods that are commonly purchased by expatriates in more than 300 locations worldwide.
Multinational firms use the survey's results to help determine how much to pay their staff working overseas.
Living costs for expats are affected by factors such as inflation, availability of goods and exchange rates.
Singapore has seen higher inflation, partly due to a 2 percentage point hike in the goods and services tax to 7 per cent.
Mr Sebastien Barnard, 32, at the British Chamber of Commerce, said living expenses, especially food, have risen. 'A year ago, lunch for two adults and two children cost about $70, including drinks. But now it's over $95.'
But the surge in property rents is still the biggest bugbear of expats here.
Mr Mark Brider, 43, head of international personal banking for the Royal Bank of Scotland in Singapore, said: 'There is a growing number of international people living in Singapore, so the demand drives up rental. My landlord just told me my rent will be raised 80 per cent in March next year.'
Nonetheless, he added, Singapore's cost of living is still 'competitive' and 'has still not reached the level of Hong Kong'.
The rising Singapore dollar has also pushed up expat living costs, said Mr Lee Quane, general manager of ECA International Hong Kong.
He said Singapore's rising cost of living is 'bad news' for global companies, which have to adjust their expat employees' pay and allowances to help them maintain their spending power here.
Additional reporting by Kua Zhen Yang
Expat cost of living in S'pore gaining on HK's
S'pore and Chinese cities move up the ranks due to strong currencies, inflation
Anna Teo, Business Times 27 Nov 07;
(SINGAPORE) The Republic is catching up with Asia's leading cities in one area it probably does not wish to make strides in - expatriate cost of living.
While some of the region's most pricey cities became relatively less expensive in the past year, Singapore, along with Beijing and Shanghai, have climbed the rungs in the latest cost of living survey by ECA International.
Singapore is listed as the ninth most expensive city in Asia - behind Seoul, Tokyo, Yokohama and Kobe, as well as Hong Kong, Taipei, Beijing and Shanghai. Worldwide, Singapore ranks 122nd, but that is 10 spots higher than in the 2006 survey.
In comparison, the Japanese cities and Taipei have all dropped in the global rankings in the past year, primarily due to a weaker currency, while Hong Kong stayed put at its 79th spot. This means that the gap is closing between the two 'traditionally competitive' locations, Singapore and Hong Kong, says ECA.
Conducted every March and September, the cost of living survey by the Hong Kong-based HR consultancy tracks a basket of 128 consumer goods and services commonly consumed by expatriates in more than 300 locations worldwide.
Multinational firms use the findings as a guide in determining expatriate remuneration packages and allowances. But the survey excludes significant items such as housing, utilities, car purchases and school fees because, ECA says, expatriate packages usually include separate compensation for these.
Apart from the two-percentage-point hike in the Goods and Services Tax in July and overall rising inflation, the appreciating Singapore dollar is also driving up costs in Singapore 'in a significant manner', says Lee Quane, general manager of ECA.
'While this is good news when sending international assignees from Singapore, those companies who need to send employees into Singapore will now have to apply higher cost of living indices to salaries to guarantee their personnel's spending power when in Singapore.'
Seoul, Asia's most expensive city, has climbed one rung in the global rankings to seventh in the latest findings. Tokyo, on the other hand, has dropped out of the top 10 for the first time, moving from 10th to 13th.
A strengthening yuan against the US dollar, along with soaring oil, food and grain prices, have added to living costs in the Chinese cities, including 'second-tier' ones. According to ECA, living costs for foreigners in Chongqing, for instance, have risen by 12 per cent, or twice as much as in Beijing.
Luanda in Angola emerged as the world's most expensive city for expatriates. Two other African cities - Kinshasa and Libreville - also feature in the top 10. European cities, led by Oslo and Moscow, make up most of the top spots.
Singapore less attractive to expats: Survey
Island slowly edging its way up the list of costliest cities
Today Online 27 Nov 07;
Singapore may be gradually losing its competitive edge to regional rivals like Hong Kong as the rising cost of living deters expatriates from coming here.
This is according to a survey by human resource body ECA International, which compared the costs of 128 consumer goods and services purchased by expatriates in more than 300 cities. They include groceries, drinks and tobacco, clothing, motoring expenses and restaurant meals. Accommodation, car purchase and children's school fees are not included because they are usually provided as part of expat packages.
According to the survey, Singapore is the ninth most expensive city in Asia this year, up a notch from last year — 122nd worldwide, up 10 rungs. Hong Kong's ranking has remained unchanged as the fifth most expensive location in the region and 79th worldwide.
In a head-to-head comparison, Hong Kong is 12 per cent more expensive than Singapore, Shanghai 5 per cent more expensive, while Kuala Lumpur is 30 per cent cheaper, ECA told Today.
The most expensive city in Asia for expats is Seoul, followed by Tokyo and Yokohama. Worldwide, the most expensive city is Luanda, the capital city of Angola, followed by Oslo and Moscow.
The consumer price index (CPI) in Singapore jumped 3.6 per cent last month from that of a year earlier, the fastest pace in more than 16 years, the Department of Statistics said last week. Contributing to the rise was the 2-percentage-point increase in the Goods and Services Tax (GST) in July and the surge in oil prices.
"The recent rise in GST and overall rising inflation resulting in higher CPI have all contributed to pushing up living costs in Singapore. This, together with no change in Hong Kong's position, means that the gap is closing between the two traditionally competitive locations," said ECA, the world's largest membership organisation for human resource professionals.
The strengthening of the Singapore dollar to a 10-year high against the United States currency this month has also made the cost of living dearer for expatriates.
"Companies that need to send employees into Singapore will now have to apply higher cost of living indices to salaries to guarantee their personnel's spending power," said Mr Lee Quane, general manager of ECA International in Hong Kong.
Mr Quane's observation highlights the dilemma faced by the Singapore Government. The threat of an inflationary spiral has prompted calls for the Monetary Authority of Singapore to let the local dollar strengthen further but there are concerns among the business community that a stronger local currency will hurt export competitiveness and diminish the island's attractiveness as a business hub.
