Rising Costs Here A Big Problem, Say Finance Execs

Source : The Buiness Times, Sep 13, 2007

Higher rents, property prices cited in survey of 508 professionals from S'pore and HK

MORE than six out of 10 finance industry professionals in Singapore, both locals and expats, regard the rising cost of living here as 'a big problem', a recent poll has found.

This hike in living expenses may 'cause the city to lose its appeal among finance professionals, both locally and abroad', according to eFinancialCareers.com, a global online network site for jobs in asset management and investment banking.

Its poll of 508 professionals - 390 from Singapore and 118 from Hong Kong - found that 56 per cent of them considered Singapore's rising cost of living to be 'a big problem'.

Of the Singapore-based professionals, 246 of them, or 63 per cent, felt that way. The poll, which focused only on Singapore, sought the views of Hong Kong-based professionals too as they might consider a job here.

Still, some professionals point out that while costs have risen in Singapore, the Republic is still far cheaper than centres like London.

The other respondents in the poll saw no problem in higher costs (6 per cent of them), or felt it was 'to be expected', 'slight' or 'very small'.

Higher rentals and property prices were cited as the biggest bugbear. But rising parking costs and relatively pricey cars were also becoming a bigger concern.

ABN Amro's head of business banking sales for Asia, Mr Jan-Arie A. Bijloos, moved here a year ago and has watched rents 'go up quite dramatically' in the River Valley area where he lives.

'Cost of accommodation would be a concern in a year's time if my salary does not rise in tandem to compensate for it,' he said.

But the Government has said that it will monitor the market to ensure there is sufficient supply of homes. It will also be releasing more residential sites for sale in the second half of the year.

Investment banker A. Cohen, a self-termed 'Broadway arts buff' who moved here from Manhattan in May, groused about 'unpalatable ticket prices' for artistic performances.

Indeed, Singapore overtook New York in a recent ranking of the world's most expensive cities by Mercer Human Resource Consulting.

Hikes in accommodation costs catapulted Singapore to 14th place, from 17th place a year ago, in the ranking.

Meanwhile, Hong Kong dropped from fourth to fifth place this year. This prompted Ms Sarah Butcher, global editor of eFinancialCareers.com, to note that the shrinking gap between the two cities could impact the 'movement of finance talent between the two markets'.

But costs here were 'still manageable' compared to elsewhere, where prices have also risen, said bankers such as Mr Salman Haider, from Citibank Singapore.

Moving here from London a year ago, he found Singapore also boasts pull factors such as 'security and a great educational system'.

'Singapore is one of the most liveable cities in the world and certainly one of the best to bring up young children,' he said.