According to Mercer’s 2023 Cost of Living survey, Singapore has made a significant leap to become one of the most expensive cities for expat employees, taking over the second spot globally.
The survey evaluated 227 cities across five continents in March 2023, and analysed the cost of over 200 items in each location, including housing, transportation, food, clothing, household goods, and entertainment. In Asia, most cities either maintained their rankings or dropped lower, with Beijing and Tokyo falling to the 13th and 19th positions, respectively, from their previous spots in the top ten.
Several factors contributed to Singapore’s significant jump in rankings. Inflation, supply chain disruptions, and rising fuel costs all played a role in making the city more expensive for expatriates. Conversely, cities in mainland China and Japan experienced drops in their rankings due to slower consumer demand, weaker currency positions against the US Dollar, and low domestic consumption.
Among other Southeast Asian cities, Bangkok emerged as the second most expensive city after Singapore. Other notable cities include Phnom Penh, Manila, Jakarta, Hanoi, and Ho Chi Minh City. On the other end of the spectrum, the least expensive cities in the region were Johor Bahru, Vientiane, Yangon, Kuala Lumpur, and Bandar Seri Begawan.
The global economy’s ongoing impact, including slower income growth, rising unemployment, and high debt levels, has influenced the cost of living for expatriate workers. Furthermore, the rise of remote working has prompted many employees to reassess their work-life balance and consider different cities or countries to reside in. Employers are also adapting to manage globally distributed workforces in tight labor markets.
As expat employees navigate the financial implications of their assignments, understanding the cost of living in various cities becomes crucial. The Mercer survey provides valuable insights for organisations and individuals planning international assignments or seeking job opportunities abroad, allowing them to make informed decisions.
