Singapore among top 10 most expensive locations in Asia: survey

Mok Fei Fei, 938LIVE Channel NewsAsia 10 Jun 09

SINGAPORE: Cost of living in Singapore continues to be high, propelling it into the top ten most expensive locations within the region.

A report by human resources consultancy, ECA International, found that Singapore is the 10th most expensive city in Asia and 72nd worldwide.

The firm said price rises have not slowed down as much in Singapore as in other parts of Asia in spite of its weakened currency.

In addition, currencies of locations which were previously more expensive than Singapore - like London and Stockholm - have depreciated at a faster rate than the Singapore dollar.

This has led to Singapore becoming more expensive for visitors than many other locations in the survey.

Topping the list for the most expensive city in Asia is Japan's Tokyo, while Angola's Luanda is the most expensive city in the world.

In all, four Japanese cities, Tokyo, Nagoya, Yokohama and Kobe, made it to the top five most expensive places globally.

Joining the region's top ten are Beijing, Shanghai and Hong Kong in fifth to seventh positions respectively. Kuala Lumpur is ranked 38th and Johor Bahru the 40th most expensive city in Asia.

ECA International said the cost of living in Asia has become more expensive as Europe and the US are bearing the brunt of the recession.

ECA carries out the cost of living survey twice a year, comparing a basket of commonly purchased consumer goods and services in over 370 locations worldwide. - 938LIVE/CNA/vm/al

Singapore becoming more expensive for expatriates
Jessica Yeo, Business Times 11 Jun 09;

SINGAPORE is now the 10th most expensive city in Asia for expatriates, despite its weakened currency, a survey shows.

Having moved up three notches from its previous ranking of 13th place in ECA International's survey on cost of living a year ago, Singapore is however still ranked below Japanese and Chinese cities, which dominate the top ten.

'Price rises have not slowed down as much in Singapore as in other parts of Asia,' said ECA's regional director for Asia, Lee Quane.

Prices of goods and services in China and Malaysia have increased at half of last year's pace, while in Singapore, they have increased by three-quarters, Mr Quane added.

Also, currencies of locations previously more expensive than Singapore (such as London, Stockholm and Istanbul) have depreciated at an even faster rate than the Sing dollar.

Meanwhile, the survey showed that due to the strong yen, Tokyo maintained its position as the most expensive city for expats. Its lead was followed by three other Japanese cities: Nagoya, Yokohama and Kobe.

Chinese cities and territories - Beijing, Shanghai, Hong Kong, Shenzhen and Guangzhou - stayed ahead of Singapore, due to the strengthening yuan.

'The yuan has continued to strengthen while the yen has appreciated by almost 8 per cent against the US dollar,' Mr Quane said.

'Many Western currencies, including sterling, the euro and the Swiss franc, have weakened. As a result, people coming from these economies into Asia will notice a considerable difference in costs compared with 12 months ago.'

Globally, Singapore jumped to the 72nd most expensive city worldwide from 114th year-on-year.

However, not all Asian cities remained expensive for expats. Due to the weakened won, Seoul has fallen to the 17th most expensive city in Asia, from its top position as the most expensive Asian city two years ago.

Similarly, the depreciating currencies of Malaysia, Thailand, Indonesia and Taiwan have lowered expatriate living costs in those countries.

Among the top 10 cheapest places for expats are Indian cities, as the weakened rupee coupled with lower inflation has made the cost of living for those locations fall.

The biannual survey by ECA compares a basket of 125 consumer goods and services commonly purchased by international assignees in over 370 locations worldwide.

Singapore now ranks among top 10 most expensive cities in Asia for expatriates
Yang Huiwen, Straits Times 11 Jun 09;

SINGAPORE has become one of the 10 most expensive cities in Asia for expatriates to live, according to a new cost-of-living survey.

The Republic's promotion from 13th spot last year to 10th in the ECA International survey, is largely down to price increases not slowing as quickly as elsewhere in Asia.

This is despite a weakening Singapore dollar making goods and services that much cheaper here for foreigners.

The strengthening of the yen saw the region's top four spots taken up by Japanese cities.

Tokyo reclaimed its position as Asia's most expensive city, followed by Nagoya, Yokohama and Kobe.

Explaining Singapore's move up the ranks, Mr Lee Quane, regional director of ECA Asia, said: 'Prices have not slowed down as much in Singapore as in other parts of Asia.'

The pace of increase in prices of goods and services in countries such as China and Malaysia, for instance, has slowed down by half. Prices are down by just one quarter in Singapore, said Mr Quane.

Still, Singapore remains a more affordable place than long-time rival Hong Kong, where the cost of living is being driven up by the strength of the Hong Kong dollar, which is pegged to the US dollar.

Hong Kong jumped from 98th spot to 29th in the global ranking, and is the seventh most costly city in Asia.

Globally, Singapore came in 72nd, up from being 114th last year.

Seoul, Kuala Lumpur, Jakarta, Manila and New Delhi are among the Asian cities which have become relatively cheaper for expatriates.

The survey found that the cost of living in Asia has increased relative to the United States and Europe, given that the West has been hit hardest by the global financial crisis.

So, while inflation has slowed in many Asian cities compared to a year ago, it has fallen more dramatically in many Western countries where growth has been slower.

Singapore International Chamber of Commerce (SICC) chief executive Phillip Overmyer says global companies with operations in Singapore are feeling the pinch.

'We're seeing demand coming down, yet costs remain very high,' making Singapore and some other Asian cities very expensive places to operate, he warned.

'What I see going on right now are serious evaluations (by companies). Where do we go if we need to move? What do we do if recession is going to last for a few years?'

Ms Jane Fraser, 38, an advertising executive, said the cost of living in Singapore is still 'reasonably bearable'. However, housing rents, which have been steadily declining of late, are still a bugbear, she said.

ECA carries out its survey twice a year to help multinational companies calculate remuneration packages and living costs for expatriates. The study compares a basket of 125 consumer goods and services commonly bought by expats in over 370 locations and measures these items against inflation, availability of goods and exchange rates.