Asia and Australia dominate top ten best locations ranking for Asian expatriates

For the tenth year, Singapore has topped the quality of life ranking for Asian assignees, according to the latest Location Ratings Survey on expatriate living conditions by ECA International, the world’s leader in the development and provision of solutions for the management and assignment of employees around the world.

 

Undertaken annually, ECA International’s Location Ratings Survey rates living standards in more than 400 locations globally according to categories including climate, air quality, health services, housing and utilities, isolation, social network and leisure facilities, infrastructure, personal safety and political tensions. Overall ratings can be used by International HR departments to establish allowances which compensate expatriate staff for the difficulties of adapting to living in their assignment location.

 

"Good infrastructure and healthcare facilities, low crime and health risks, and decent air quality contribute to Singapore providing the best quality of living for Asian assignees" explains Lee Quane, Regional Director, Asia, ECA International.

 

The Japanese cities of Kobe (3), Yokohama (4) and Tokyo (6) are the other Asian locations featured in the top 10. Joining them are Sydney, Melbourne, Copenhagen, Canberra, Vancouver and Wellington.

 

Baghdad remains the least favourable location to live in, followed by Kabul, Karachi and Port-au-Prince. A lack of suitable facilities for expatriates along with high personal security risks makes these locations the least desirable.

 

"According to our latest Expatriate Salary Management Survey, 70% of companies will pay a location allowance when there is a need to compensate for the difficulties associated with adapting to a new environment," says Quane. 

 

"Yet, companies wanting to cut costs in today’s economic climate may look to reducing or removing location allowances, arguing that they are non-essential,” continues Quane. “This could well be counterproductive. Talent shortage and barriers to mobility such as family concerns still exist. A location allowance conveys to staff the important message that the company is aware of the adjustment that an assignee needs to make even when going to a location where the quality of living may not be too dissimilar from their home location."

 

Of the 49 Asian locations included in the survey only five are in the top 50.  Hong Kong, ranked 11th globally, continues its rise up the ranking as facilities for visitors improve. However, its position as one of the worst locations worldwide for air quality is the biggest reason for its lower ranking relative to Singapore and other Asian locations ahead of it in the ranking. The SAR is followed by Taipei (56), Macau (56), Kuala Lumpur (61), Bangkok (63) and Georgetown (64).

 

“These rankings reveal a large gulf in the quality of living among Asian locations. While there are a handful of locations in Asia which offer Asian assignees a good standard of living, the majority of locations will be challenging in some shape or form, therefore warranting high location allowances.”

 

Some of the biggest improvements in quality of living this year have been seen in Chinese locations where facilities for visitors have improved. Beijing has moved up 13 places to 99 – a knock on effect of improvements in infrastructure, recreational facilities and security for the Olympics. Nonetheless, pollution remains a continuing problem with Beijing scoring the worst in the survey for air quality. Shanghai (75) tops the list of Chinese locations in the survey followed by Nanjing (96).

 

Indian locations have on average fallen in the ranking this year. New Delhi, ranked 187th globally, has seen the most deterioration in quality of living within Asia, due mainly to a fall in the quality of air. Along with Beijing it scores the worst globally for this criterion. Of the other Indian locations included in the survey, Chennai (145) scores the most favourably ahead of Bangalore (153) and Mumbai (159). Kolkata is among the Asian locations to have fallen the most significantly, down 10 places to 203 due, largely to poor air quality.

 

"Given the current global economic situation it is likely that political instability will grow in some Asian economies over the next twelve months, and the quality of living of international assignees could be affected by higher crime rates and greater economic protectionism,” says Quane. “The challenge for governments of cities reliant on foreign investment will be how to reduce the impact of this to ensure that their cities remain attractive to multinational companies and personnel who may be assigned to such locations."

 

Within the region Kabul (253), Karachi (252) and Pyongyang (247) are the locations which afford Asians the least favourable quality of living.

 

Globally, European locations dominate the top of the ranking with Copenhagen (6) offering Asians the best quality of living in Europe. Locations in Ireland, Belgium, Switzerland and Germany all feature in the top 30 ahead of London (41), Rome (46) and Paris (47), where pollution is more of an issue.

 

In Eastern Europe a number of locations including Bucharest (102) and Belgrade (167) have improved significantly as economic growth and structural reform have contributed to improved facilities and security. Georgia’s Tibilisi is the European city to have fallen the most in the ranking, dropping 14 places to 212 due, predominantly, to the increase in social-political tensions last year.

 

For Asians assigned to the Americas, Vancouver, ranked 9th remains the most favourable location. The Canadian city is followed by San Francisco (16), Washington (25) and Toronto (32). Port-au-Prince, ranked 251 is the least desirable place in the region to live as an Asian expatriate while Santiago in Chile (87) still receives the worst score for pollution in the region, followed by Mexico (154).

 

In Africa, Port Louis in Mauritius (91) is the most attractive destination for Asians while an increase in socio- political tensions means Cape Town has slipped 10 places to 99. Along with South America many of the most difficult places for Asian assignees are found in Africa, where personal security issues as well as socio-political tensions are particularly high. The Republic of Congo’s Brazzaville (250) is the continent’s least favourable destination.

 

In the Middle East, Manama (67), Dubai (72) and Muscat (74) offer the best quality of life. Doha (80) and Abu Dhabi (75) score well for personal security and Muscat for socio-political tensions, yet a number of locations in the region, including Baghdad, score badly in these areas.

 

"Many factors, including where an assignee is coming from and going to, can affect the adjustment required by them and their family when adapting to a new environment,” explains Quane. “This ranking has been done on an Asian base but change that to a European base and Copenhagen would be in the number one spot – it’s closer to home and culturally more similar for Europeans than Singapore so it would be easier for them to adapt to life there."

 

Singapore, ranked 54th on a European base, offers Europeans the best quality of life in Asia followed by the Japanese cities of Kobe and Yokohoma. Hong Kong beats Tokyo into 4th place as most liveable Asian destination for Europeans.

 

After Copenhagen, the Belgian cities of Antwerp and Brussels provide the best quality of living for Europeans. While the top ten differs for Europeans and Asians, the least desirable locations – Baghdad, Kabul and Karachi - remain the same.

 

*Kindly refer to location ratings below.

 

 

ECA is the world’s leader in the development and provision of solutions for the management and assignment of employees around the world.

 

Delivering data, expertise, systems and support in formats which suit its clients, ECA’s offer includes a complete 'out-source' package of calculations, advice and services for companies with little international assignment management experience or resource; subscriptions to comprehensive online information and software systems for companies with larger requirements; and custom policy and system development projects for companies who manage thousands of international assignees around the world.

 

The Location Ratings Survey is carried out on an annual basis. The survey objectively evaluates various factors in order to arrive at an assessment of the quality of living in over 400 locations worldwide. The scores take into account the home and destination country, therefore rankings will vary according to the base used to compare the quality of living. For comparison purposes the rankings used here are for 254 locations worldwide on an Asian base. A location’s position in the ranking can be affected by deterioration or improvement in scores as well as by the movement of other locations relative to it.

 

ECA‘s Location Ratings Survey is delivered through ECA’s location allowance calculator which offers a transparent and detailed system for calculating location or “hardship” allowances for expatriates relocating to a new country.
Users can select region-to-city allowances or city-to-city allowances, so that depending on your policy the system reflects the level of detail that is required. ECA’s system provides an immediate “banding” for the host location, based in part on the circumstances of the home location. With the banding come ECA’s recommended allowances, expressed as a percentage of home gross salary.

 

ECA’s location allowance calculator also gives breakdowns of the scoring given to a number of different categories contributing to the overall score which translates to banding and allowances. Categories include climate, health services, isolation, social network and leisure facilities, infrastructure and political tensions.

 

Issued on behalf of ECA International by EASTWEST Public Relations.