SINGAPORE: Singapore has been ranked the second most expensive city for expatriates globally, according to Mercer’s 2024 Cost of Living Survey.
The city-state retained its position from last year, following closely behind Hong Kong, which tops the list for the third consecutive year. Zurich, Geneva, and Basel also feature prominently in the top five of the annual ranking.
Mercer, an international consulting firm, evaluated 226 cities worldwide for the survey. It assessed over 200 indicators that affect expatriate living costs, including accommodation, transportation, food, entertainment, and household goods.
Singapore’s high cost of living for expatriates is driven by several factors. The city is known for its expensive housing market, significantly impacting overall living expenses.
Additionally, the costs of transportation, goods, and services in Singapore are considerably higher than in many other cities.
The survey highlighted that inflation and exchange rate fluctuations play crucial roles in affecting expatriate salaries and savings.
In recent years, increased economic and geopolitical turmoil, coupled with local conflicts and emergencies, have further strained expatriate budgets. These pressures lead to higher expenses for housing, utilities, local taxes, and education.
In contrast to Singapore and Hong Kong, cities like Islamabad, Lagos, and Abuja have the lowest costs of living for expatriates.
This disparity is attributed partly to currency depreciation in these regions, which makes living expenses more manageable for expatriates.
The top ten cities in the survey with the highest cost of living for expatriates are:
- Hong Kong
- Singapore
- Zurich
- Geneva
- Basel
- Bern
- New York City
- London
- Nassau (Bahamas)
- Los Angeles
Mercer’s methodology involves a comprehensive evaluation of various cost-of-living factors. The survey’s 200-plus indicators encompass a wide range of expenses that expatriates typically face.
These include costs for accommodation, transportation, food, entertainment, and household goods, offering a detailed perspective on the financial demands of living abroad.
For expatriates considering relocation, understanding the financial landscape of potential host cities is crucial. Singapore, while offering a high standard of living and strategic business location, comes with substantial living costs.
Companies and expatriates must account for these expenses when planning relocations and negotiating compensation packages.
Mercer’s annual survey serves as a critical resource for businesses and expatriates, providing insights into the cost implications of living in major global cities.
As economic conditions evolve, the rankings offer a snapshot of how these changes impact expatriate lifestyles and budgets.
/TISG