Thurs, 5 Mar 2015
THE STRAITS TIMES
MONEY
EIU again rates Singapore costliest for expats
Published on Mar 4, 2015 1:32 AM
By Yasmine Yahya Assistant Money Editor
IT was a year when inflation in Singapore fell below 1 per cent, but the Economic Intelligence Unit (EIU) still rated it the world's most expensive city for expatriates.
It is the same position that Singapore had occupied for 2013. It was pointed out then that Singapore had paid the price for its strong currency as the expatriate cost of living was measured in US dollars and did not affect locals.
Last year, too, the Singapore dollar remained fairly strong against the US currency for much of the year before the greenback started clawing back lost ground over the past few months.
There is another caveat, too.
The EIU said Swiss cities Zurich and Geneva would actually top Singapore at current exchange rates if its Worldwide Cost of Living Survey took into account the recent jump in value of the Swiss franc after Switzerland unpegged its currency from the euro.
As it stands now, the top five most expensive cities in the world remain unchanged from last year: Singapore in the lead, followed by Paris, Oslo, Zurich and Sydney.
The EIU's survey, released yesterday, comprises 133 cities worldwide and compares the cost of more than 160 services and products including food, clothing and utility bills.
The survey uses New York as a base, with prices in each city compared against those in New York.
The information gathered is designed to be used to calculate the costs of relocating and living for expatriates and business travellers.
This means the products and services studied tend to be on the more luxurious end of the scale and do not necessarily reflect the consumption patterns of ordinary Singaporeans.
In last year's survey, for example, the basket of items that the EIU studied included things such as imported cheese, filet mignon steak, the four best seats in a theatre and Cointreau liquor.
The survey also looks at how much it would cost to buy a car, noting that "Singapore's complex Certificate of Entitlement system makes car prices excessive, with Singaporean transport costs almost three times higher than in New York".
The EIU noted, however, that despite topping the ranking, Singapore still offers relative value in some categories, especially compared with its regional peers.
"For general basic groceries, Singapore is only 11 per cent more expensive than New York. This compares with 49 per cent more in Seoul, 43 per cent in Tokyo and 31 per cent in Hong Kong, implying that value for money can be found by those who seek it."
EIU also pointed out: "Midway through 2014, Singapore lay in fourth position, and the reassertion of an identical top five comes with a stronger US dollar and weaker euro pushing euro zone cities back down later in 2014."
The weak yen has pushed Tokyo to 11th place.
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