It moves up a spot in two categories – to No. 5 in Asia and No. 13 in the world

SINGAPORE is now the fifth most expensive Asian city for expatriates, up a notch from an earlier survey, human resources consultancy Mercer said yesterday.

The annual cost-of-living survey did not spring too many surprises, with traditionally expensive cities in Europe and Asia featuring strongly in the top 20 cities for this year.

For the third year running, Moscow retained its top spot, while Tokyo climbed two spots to second, knocking off London and Seoul, which dropped to third and fifth, respectively, in the global rankings.

Singapore, which was number six in Asia last year, also edged one spot higher in global rankings this year, coming in at 13th.

‘Singapore’s rise in the rankings is partly attributable to the appreciation of the Singapore dollar against the US dollar,’ said managing director for Mercer-Asean, Ms Su-Yen Wong.

‘Another contributing factor is its continued strength as a hub for the region…this has increased demand for items such as housing, food and transportation.’

Mercer’s survey, which covers 143 cities around the world, measures and compares the costs of over 200 essential items for expats.

These include housing, transport, food, clothing, household goods and even entertainment.

The rising cost of living reflected in the survey confirmed the global trend of price increases for staple items such as food and petrol.

The findings also showed a high correlation between the cost of living, economic growth and quality of life in a country.

This was more true for fast-developing Asian cities such as Singapore, where the cost-of-living increase can be attributed to the higher quality of life enjoyed by residents, Mercer said.

But despite rising living costs, especially in housing, Singapore remains competitive compared to its Asian neighbours such as Tokyo, Seoul and Hong Kong, and other global financial centres such as London and Zurich.

This has also not deterred foreign firms from setting up shop in Singapore.

‘Our members are concerned about increasing rents but other costs are pretty much at world standard levels,’ said Mr Nick Cocks, president of the Australian Chamber of Commerce, Singapore.

‘And, overall, most of our members find Singapore a great place to live.’

Its American counterparts, however, painted a less-than-positive picture of Singapore.

A recent survey by the American Chamber of Commerce here showed that 74 per cent of its members were ‘dissatisfied’ with the cost of leasing offices and housing, while 95 per cent expected the cost of living to rise.

New York, the most expensive city in the US, is ranked 22nd on Mercer’s global list.

Source : Straits Times – 24 Jul 2008

It is also the 5th costliest in Asia for expats: Mercer survey

SINGAPORE is the world’s 13th most expensive city for expatriates, and the fifth most expensive in Asia.

According to Mercer’s Worldwide Cost of Living Survey 2008, Singapore ranks above Sydney (15th), New York (22nd) and Shanghai (24th).

Mercer’s survey, which covers 143 cities on six continents, measures the comparative cost of more than 200 items in each location, including housing, transport, food, clothing, household goods and entertainment.

For instance, a fast-food hamburger meal costs US$4.50 in Singapore, US$3.18 in Hong Kong and US$5.97 in Tokyo.

Mercer’s managing director (Asean) Su-Yen Wong said: ‘Singapore’s rise in the rankings is partly due to the appreciation of the Singapore dollar against the US dollar.’ At the same time, Singapore’s strength as a regional hub and its ‘high quality of living’ have attracted talent from overseas. ‘Consequently, this has increased demand for items such as housing, food and transport.’

Rents have increased significantly here. According to Mercer, a ‘luxury’ two-bedroom unfurnished apartment now costs US$3,539.77 a month, an increase of about 20 per cent from US$2,946.09 in 2007.

But ‘luxury’ rent here is lower than in Hong Kong at US$6,411.89 a month and Tokyo at US$5,128.84.

On the upside, Singapore’s annual ranking has not increased as rapidly as before. Its 13th place this year is only a notch up from its 14th last year. In 2006 it ranked 17th – way up from 2005 when it was 34th.

In the latest survey, Moscow has been ranked the world’s most expensive city for expatriates – for a third straight year. London dropped one place to third.

Yvonne Traber, a principal and research manager at Mercer, said: ‘Although the traditionally expensive cities of Western Europe and Asia still feature in the Top 20, cities in Eastern Europe, Brazil and India are creeping up the list. Conversely, some locations such as Stockholm and New York now appear less costly by comparison.’

With New York as the base city at 100 points, Moscow scored 142.4 and is close to three times costlier than Asunción in Paraguay, the least expensive city with a score of 52.5.

Mercer noted that contrary to a trend last year, the gap between the world’s most and least expensive cities now seems to be widening.

In its report, it says: ‘Our research confirms the global trend in price increases for certain food items and petrol, though the rise is not consistent in all locations. This is partly balanced by decreasing prices for certain commodities, such as electronic and electrical goods. We attribute this to cheaper imports from developing countries, especially China, and to advances in technology.’

Source : Business Times – 24 Jul 2008