Singaporean firms are partly covering employees’ housing costs and even relocating staff to more affordable neighbouring cities due to skyrocketing home rents, which surged at their fastest rate in 15 years in 2022.
However, the continued rise in rent prices in 2023 means expatriate workers might leave Singapore permanently, potentially hindering the city-state’s ambition to become a technology and innovation hub.
According to a European Chamber of Commerce survey, around 40% of 268 polled companies offer additional aid of over S$1,500 ($1,128) a month to staff, while 70% are ready to move foreign staff overseas if the situation worsens.
The Singaporean government expects rental prices to decline as more homes are built, but a surprise tax hike on foreigners’ property purchases may keep rents high by pushing potential buyers towards renting.
