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Rising price levels in Singapore see it retaining its status as 13th most expensive city globally

  • A further rise in Singapore’s ranking was curbed by the weaker Singapore dollar against other major currencies.
  • Hong Kong retains status as the world’s most expensive city for foreign workers, with many mainland Chinese cities climbing up the list.
  • The gap in living costs between Singapore and its Southeast Asian neighbours continues to widen with Laos, Myanmar, Thailand and Malaysia falling in the rankings. 

Singapore’s position in ECA’s cost of living rankings remained unchanged from last year in spite of the city experiencing significant price rises in the past twelve months, with housing rental costs, utilities and petrol prices seeing particular growth. This was one of the findings of the latest Cost of Living research published by ECA International, the world's leading provider of knowledge, information and software for the management and assignment of employees around the world.

“The fact that Singapore retained its ranking as the 13th most expensive location globally despite higher-than-average inflation of 5%, which was fuelled by rising costs for rents, utilities and petrol, may come as a surprise to some,” said Lee Quane, Regional Director – Asia at ECA International.  “This was because the Singapore dollar has weakened against regional currencies, such as the yuan, and the US dollar at the same time, mainly due to a sharp slowdown in manufacturing and exports during the latter part of our survey period."

ECA International has been conducting research into cost of living for 50 years. It carries out two main surveys per year to help companies calculate cost of living allowances so that their employees' spending power is protected while on an international assignment. The surveys compare a basket of like-for-like consumer goods and services commonly purchased by assignees in over 490 locations worldwide. ECA’s accommodation data is also factored in, comparing rental costs in areas typically inhabited by expatriate staff in over 410 locations worldwide.

Across Asia, many locations in the region have witnessed above-trend rates of inflation in the past 12 months. The location which has seen the fastest rate of price growth in the past year was Colombo in Sri Lanka, causing it to rise 23 places in ECA’s rankings to 149th globally.

“Supply shortages of some essential items prompted by a lack of foreign currency have resulted in price increases of more than 15% at the time of the survey, when compared to the previous year,” said Quane. “Protests, which arose in response to the higher prices, have led to the resignations of leading government figures, most notably the prime minister of the country.”

Top ten most expensive locations for overseas workers - Asia

Location
2022 global ranking
2021 global ranking
Hong Kong
1
1
Tokyo
5
2
Shanghai
8
9
Guangzhou
9
10
Seoul
10
8
Shenzhen
12
12
Singapore
13
13
Beijing
14
16
Yokohama
17
11
Taipei
20
21


Strong local currencies push Hong Kong and cities across mainland China up the list

Hong Kong remains the most expensive city worldwide, even though prices have risen less in the Special Administrative Region compared to other similar locations worldwide. 

“Year-on-year price increases of 3%, as measured by our basket of goods and services, are higher than what we typically see in Hong Kong. However, the hike in prices is lower than the rates in similar cities both within the region and globally,” said Quane. “Rather, it has been the strength of the Hong Kong dollar, which is pegged to the US dollar, in the past year which enabled the city to maintain its position as the most expensive location worldwide as other currencies have weakened.”

Meanwhile, many mainland Chinese cities have continued to rise in the rankings, with four cities now included in the 15 most expensive cities globally. Shanghai is also now the third most expensive city in Asia after Hong Kong and Tokyo. 

Quane said, “The majority of the mainland Chinese cities in our rankings have higher rates of inflation than what we are used to seeing, but they are still lower than locations elsewhere in Asia. As in the case of Hong Kong, the main reason for their rise in the rankings has been the continued strength of the Chinese yuan against other major currencies, due to China’s relatively strong economic performance during the survey period.”

A similar trend was seen in Taiwan, with all surveyed cities rising in the rankings owing largely to the continued strength of the Taiwan dollar against other currencies. 

On the other hand, Japanese locations have all dropped in the latest rankings as the yen weakened due to unexpectedly higher inflation, alongside negative interest rates. Tokyo, in particular, has fallen three places to fifth in our global rankings.

Southeast Asian locations fall in rankings, hampered by weak currencies and slower economic recovery

Many of Singapore’s neighbours in Southeast Asia have fallen in the rankings in the past 12 months. A mix of currency weakness in some locations and relatively low rates of inflation in others have contributed to a widening gulf in living costs in Singapore relative to many of its neighbours.

Quane added, “While Laos and Myanmar experienced high rates of inflation - almost 10% - in the past 12 months, they still fell in our rankings as their currencies have weakened considerably. Laos was struggling with both lower exports to China, and the affordability of its rising foreign debt. In the case of Myanmar, currency weakness was due to the economic paralysis which followed the coup in 2021.” 

Elsewhere in the region, Thai and Malaysian cities also fell in the global rankings. Bangkok and Kuala Lumpur saw large increases in petrol prices, up 33% and 49% respectively. But with weaker rents pushing down overall inflation to levels lower than that of many other locations, they saw their rankings fall. In Thailand, the slow pace of tourism recovery hit the Thai baht during the survey period, further pushing down its ranking.”

Top ten most expensive locations for overseas workers - Global

Location
2022 global ranking
2021 global ranking
Hong Kong
1
1
New York
2
4
Geneva
3
3
London
4
5
Tokyo
5
2
Tel Aviv
6
7
Zurich
7
6
Shanghai
8
9
Guangzhou
9
10
Seoul
10
8
 

Global Highlights

Most locations within the EU have seen drops in the rankings after an unsteady period for the euro, with Paris falling out of the global top 30. Cities such as Madrid, Brussels and Rome have fallen in rankings as well.

Quane said, “Nearly every major eurozone city saw a drop in the rankings this year as the euro performed worse in the last 12 months than the US dollar and British pound. The euro’s weakness was mainly caused by market expectations of the European Central Bank to raise its interest rates more slowly than its peers.”

In Russia, Moscow is down one place to 62nd in the rankings, while St Petersburg maintained its position at 147th.

“At the time of the survey, the rouble had plunged in value as economic sanctions against Russia for its invasion of Ukraine shook confidence in the economy. The sanctions and weaker currency helped push up inflation which counteracted the exchange rate losses, leaving the country stable in the overall ranking,” said Quane.

-ENDS-


Notes to Editors

About ECA's Cost of Living Ranking

ECA's cost of living rankings combine their Cost of Living research and Accommodation research to enable a comparison of costs faced by expatriates around the world in 207 cities in 120 countries and territories. 

This comparison of cost of living is calculated on a base composed of various developed countries and is used to reflect an international lifestyle. Other indices available from ECA reflect specific city-to-city comparisons and different levels of shopping efficiency.

ECA’s Cost of Living research

ECA’s cost of living research is carried out in March and September using a basket of day-to-day goods and services commonly purchased by assignees. The data used above refers to the March 2022 data collection period with changes compared to the March 2021 period. ECA’s Cost of Living rankings began in 2005.

Cost of living indices are used by ECA clients to calculate cost of living allowances for assignees. The research covers:

  • Food: Groceries; dairy produce; meat and fish; fresh fruit and vegetables 
  • Basic: Household goods; recreational goods; general services; leisure services
  • General: Clothing; electrical goods; motoring; meals out; alcohol and tobacco
  • Utilities costs
  • Public transport

ECA’s Accommodation research

This ranking uses data from ECA's 2022 Accommodation reports. The reports have been published annually since 1996.

The reports provide comprehensive and reliable information for locations worldwide on the rental trends, types of accommodation and districts commonly sought by expatriates. To ensure impartiality and to maintain the accuracy of information, data from a number of sources is used to compile each accommodation report. ECA uses a global network of estate agents, relocation agents and extensive in-house research into worldwide property markets to establish and verify the housing data in the reports. 

About ECA International 

ECA International is a market leader in the provision of knowledge, information and technology that enables businesses to manage their international reward programmes. 

Partnering with thousands of clients globally, we provide a fully-integrated suite of quality data, specialist software, consultancy and training. Our insights guide clients as they mobilise their most valuable resource: people.

We make the complex world of international mobility simple, providing clients with the expertise and support they need to make the right decisions - every time.

ECA International: Mobility solutions for a world that’s constantly moving.
 

Follow ECA on twitter: @ECAintl

ECA's blog provides updates and commentary on currency, inflation and expatriate cost of living. Follow the blog here: https://eca-international.com/insights/blog


For further information, please contact:

Keith Lee / Aly Pabellano
Rice Communications for ECA International
Email: ecainternational@ricecomms.com   

Lee Quane (Hong Kong)
ECA International
Regional Director - Asia
Tel: +852 2121 2388
Email: lee.quane@eca-international.com  

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