In the last six months, it has been observed that Singapore has become an expensive destination especially for the expatriates to reside in the nation. The nation has now on the eighth spot in Asia from the initial ninth spot. This is as per the recent survey on the cost of living from the ECA International.
In the last one year, Singapore jumped from the 79th spot to the 42nd spot in the cost of living globally. The main reason behind this is the constantly increasing prices along the strengthening of the Singapore dollar when compared to all the major currencies in the world.
The above clearly implies that the city-state is much more expensive for the expatriates to reside in Singapore than living in London (ranked 50th globally). Based on the survey by ECA, New York is still considered more expensive. This survey is conducted twice a year.
According to Lee Quane, the Regional Director for Asia, ECA International, this increase in the cost of living can be considered as a sword which is double-edged. The cost for the firms which are bringing senior skilled foreigners into Singapore would increase catering to higher allowances which would be needed so as to meet the purchasing power of the employees.
At the same time, the companies deploying their employees out of Singapore can cater to a lower cost of living when it comes to the allowances. They can still offer sufficient remuneration as to cater to decent standard of living.
It could also be observed that when it comes to the cost of living between Hong Kong and Singapore, the margin is decreasing speedily. Hong Kong happens to be the sixth most expensive city in Asia. Two years ago, this margin was only about 15 percent. About a year back, this margin further came down to 7 percent and now, it is just 2 percent. Above all, this clearly caters to a tough competition amongst both these regions in Asia.