Bloomberg analysis highlights Singapore’s unique position despite high living costs, with expats drawn to its global appeal and focus on long-term growth.
SINGAPORE: Recently named the most expensive city in the world alongside Zurich, Singapore has also earned recognition as the fifth best city for expatriates in the region, according to a recent Bloomberg analysis.
Despite the city’s high living costs—ranging from rent to car ownership—which may deter some foreign residents, the report notes that many expats appreciate Singapore’s “global” approach and its ongoing investments in future developments.
The study, which evaluated factors such as rental costs, taxes, education, and potential salary increases, placed Tokyo in the top spot, followed by Hong Kong, Shanghai, and Sydney in second, third, and fourth places, respectively.
Bloomberg highlights that Tokyo’s rental prices are stable, and international school fees are relatively low. A Tesla Model Y Performance in Tokyo costs about US$50,000 (S$66,300), whereas in Singapore, the same vehicle is priced at S$184,883 without the Certificate of Entitlement (COE). While the cost of living in Tokyo is generally lower, the city’s income tax rate is higher compared to others on the list.
Hong Kong, with the lowest personal income tax rate and the highest projected salary increase for 2024, also stands out. The city’s government has introduced several initiatives, such as reduced levies for foreigners buying homes and a new visa plan aimed at attracting high-income workers. This has bolstered Hong Kong’s status as a key international financial hub.
On the other hand, Singapore, while facing the challenge of its high living costs, remains a favourable destination due to its forward-thinking policies and its reputation as a global business centre. Although salary projections for finance managers in Singapore fall below those of Sydney and Tokyo, the city’s unique position in the region as a hub for multinational companies continues to attract expatriates, particularly those drawn by the potential for long-term investment opportunities.
The Michelin-starred dining scene in Singapore also continues to impress, with 55 establishments in the city, outstripping Shanghai’s 51 but trailing behind Hong Kong’s 78 and Tokyo’s 183.
Overall, while each city offers different advantages—from tax incentives to dining experiences—expats in Singapore value the city’s strategic vision and its attractiveness for future growth and international connections.
