Expensive Expat Living: Singapore Takes 2nd Spot in Asia’s Costliest Cities

Living in Asia as an expat offers dynamic urban landscapes and a rich cultural blend, making it an enticing prospect. Yet, this allure comes at a price. According to recent studies, several Asian cities rank among the world’s most expensive places for expatriates.

In a 2023 study by ECA International, cities like Hong Kong, Singapore, Seoul, Tokyo, and Shanghai made it to the top 10 global rankings for expat living costs. The rising cost of living, driven by high rental prices, inflation, and strong currencies, propels these cities up the ranks.

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SINGAPORE’S RISE IN GLOBAL RANKINGS

Singapore, renowned for its efficient infrastructure, safety, and quality of life, has seen a significant increase in expatriate living costs. The Lion City now ranks as the second most expensive city globally for expats. According to ECA International, soaring rental costs play a crucial role in this rise, making it increasingly challenging for expats to find affordable housing.

MOST EXPENSIVE CITIES IN ASIA

While Singapore’s ascent is remarkable, it’s not alone in experiencing a surge in living costs. According to the Mercer Cost of Living Survey for 2024, here are the most expensive cities for expats in Asia:

1. Hong Kong – This city frequently tops the list due to overwhelming housing prices and a competitive job market, yet it continues to attract international businesses and expats alike.

2. Singapore – Rapidly rising rental costs place Singapore as the second most expensive city globally for expats.

3. Shanghai – As a global financial hub, Shanghai has seen significant increases in housing expenses, cementing its status as one of Asia’s costliest cities.

4. Seoul – Known for its tech-savvy lifestyle and vibrant culture, Seoul demands a high price, particularly in housing and education.

5. Tokyo – With its blend of tradition and modernity, Tokyo’s high living costs are driven by pricey real estate and high standards of living.

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BALANCING LUXURY AND COST

As Asia evolves into a hub for international business and lifestyle, understanding the financial landscape is crucial for prospective expatriates. High living costs in cities like Singapore offer world-class amenities and cultural experiences. Yet, balancing luxury and expenses is tricky. It will take time to navigate these financial pressures while enjoying the unique city living.

Sources: 1, 2, & 3

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Why do expatriates send their kids to international schools in Singapore?

Recently, it has been reported by Singapore’s mainstream media that the cost to send a child to an international school in Singapore could reach up to a jarring amount of $500,000. Most Singaporeans would probably wind up in disbelief since we have been accustomed to the affordable public school fees that are the result of generous government subsidies.

From the economic perspective, critics are quick to dismiss this exorbitant option as some believe that the cost of receiving such an education would far outstrip the financial benefits that are fraught with a great deal of uncertainties. Indeed, there may be some truth to it. However, this premise may be limited in scope at the same time since it has not considered the intangible benefits – realised in the intermediate or long term – that overshadow the financial outlay.

The economics of social networks

Unequivocally, the quintessence of studying in an international school is the development of invaluable and diverse social networks. This is an instrumental consideration for both the child and their parents where the former solidifies their friendships with like-minded peers who come from similar socio-economic backgrounds, thereafter lending support to the latter’s efforts in expanding or diversifying their business networks.

Nonetheless, the maxim “birds of a feather flock together” does not only apply to this context. The different tiers of public schools inherent in the MOE school system also serve the same function. However, the demographics of the student populations may differ significantly as international schools tend to include more diverse nationalities and ethnicities and are more likely to attract the high income groups.

The teachers

International schools tend to recruit teachers from different parts of the world, which could serve as a great eye-opener for the young and malleable minds. The diversified talent pool of teachers share their individual overseas living experience and introduce different cultures and multifaceted ways of thinking and communicating to the students, all of which are life skills that cannot be emphasised more. By doing so, they also bring seemingly irrelevant subjects such as history alive and abstract theories students commonly read in the textbooks applicable to life.

Sublime teachers are a great source of inspiration, motivation and discipline, attributes that are possessed by most – if not all – successful people. While they may not be omniscient, the fact that they aspire to impart the best education in terms of practical knowledge and the right mentality to their students is praiseworthy. They are relentless in enhancing their knowledge and forming vital networks to improve their teaching strategies and materials, in the hope of providing greater enlightenment to their students on the particular subject. And such intangible value cannot be easily measured by any dollar amount. Unsurprisingly, such teachers are few and far between.

The answer

Therefore, from the viewpoint of a discerning expatriate parent, it is likely that the parent (mainly through the feedback of the child) has found immense value in the social networks and the quality of the teachers that warrants the hefty educational investment.

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