S'pore Is An Expensive City

Source : The Straits Times, June 10, 2009

SINGAPORE has become one of the 10 most expensive cities in Asia for expatriates to live, according to a new cost-of-living survey.

Singapore has become one of the 10 most expensive cities in Asia for expatriates to live, according to a new cost-of-living survey. --ST PHOTO: ALPHONSUS CHERN

That's because although the pace of price rises of many goods and services slowed in Asia this year, this did not happen as much in Singapore, said human resources firm ECA International which conducted the survey.

This is despite a weakening Singapore dollar which makes goods and services here cheaper to foreigners.

The Republic jumped three places from the 13th spot last year to the 10th spot, while the strengthening of the yen saw the region's top four spots being taken up by Japanese cities.

Tokyo reclaimed its position as Asia's most expensive city, followed by Nagoya, Yokohama and Kobe.

Explaining Singapore's move up the ranks, Mr Lee Quane, regional director of ECA Asia said: 'Prices have not slowed down as much in Singapore as in other parts of Asia.'

The pace of increase in prices of goods and services in countries such as China and Malaysia, for instance, has slowed down by half. Comparatively this rate is down by just one quarter for Singapore, said Mr Quane.

Still, Singapore remains a more affordable place than long-time rival Hong Kong, where the cost of living is being driven up by the strength of the Hong Kong dollar, which is in turn pegged to the US dollar.

Hong Kong jumped from 98th spot to 29th in the global ranking, and is the seventh most costly city in Asia.

Globally, Singapore came in 72nd, up from being 114th in 2008.

Seoul, Kuala Lumpur, Jakarta, Manila and New Delhi are among the Asian cities which have become relatively cheaper for expats to live in.