Singapore has been ranked the eighth most expensive city for expats globally, overtaking Hong Kong, which took the ninth spot, according to a survey conducted by Mercer.
The human resource firm said the strengthening of the Singapore dollar has pushed the country up three places to the top 10 list of most expensive cities for expats worldwide. The cost of housing, which is the biggest expense for expats, also plays a significant role in determining the cities’ ranking, it added.
According to the survey, Luanda, Angola’s capital city, remained the world’s most expensive city for expats, with Tokyo in second spot.
Meanwhile, only three European cities made the top 10 list. Moscow, which was ranked fourth globally, remained the most expensive city in Europe, followed by Geneva and Zurich in the fifth and seventh spot respectively.
Tokyo remained the costliest city in Asia, followed by Osaka, Singapore and Hong Kong in second, third and fourth place respectively.
Australian cities also witnessed the most dramatic jump in the rankings, as the local currency grew nearly 14 percent against the US dollar. Sydney landed in 14th spot, while Melbourne rose from 33rd to 21st place, and Perth climbed 30 places to reach the 30th spot.
“Multinational companies have long understood the competitive advantage of a globally mobile workforce, though the enduring challenge is to balance the cost of their expatriate programmes with the needs for foreign talent,” said Phil Stanley, a principal at Mercer.
“Currency fluctuations, inflation, housing costs, income tax rates and the cost of international schools are all factors that influence the cost of living for expats. It is essential that employers understand their impact, for cost-containment purposes but also to ensure they retain talented employees by offering competitive compensation packages.”
The Mercer cost of living survey covers 214 cities globally and measures the relative cost of more than 200 items in each city, including housing, clothing, food, household goods, entertainment and transport.
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