According to the recent reports of Economist Intelligence Unit, Singapore is once again ranked the most expensive city in the world. The other cities that follow are Hong Kong, Zurich (Switzerland), Tokyo (Japan) and Osaka (Japan). It is amazing to note that while New York is positioned at ninth, half of the top 10 cities are in Asia.
1. It is no secret that this South-East Asian city, province, and country, have been occupying the top spot four years in arrow now. Singapore has emerged as the talent storehouse of the world, it has attracted not only just the men new fashion trends but also the resource pool and international investments owing to the government’s strong enforcement and regulations.
2. In cities such as Hongkong and Singapore, the domestic pool of talent is moderate hence multinationals are required to import the skilled people who can run the business effectively and efficiently in global markets. Most of these places MNC’s are expatriating expensive foreigners through them flows the disparate lifestyle and the need to import latest fashion trends for men in food, clothing, and goods.
3. Most of the expensive cities in the world have been thronged by the foreign workers that are also pushing up the demand for best and most-suited accommodations. The limited land areas in these cities as result are escalating the living costs. According to available data, one- third of the Singaporean workforce is actually consisting of foreign nationals, although the government has initiated latest moves to cut-down the in-bound foreign workers.
4. While wages are the single biggest expense for the companies that are planning to globalize their operations, the additional costs borne from cost of living and hardship allowances are also considered while expatriating foreign workers. It is to be also noted that the when a multinational firm decides to move an employee from an expensive to cheaper location the additional compensation is provided in the form of the hardship allowance to account for the drop in the quality of life. This is usually done through the cost of living analysis done by the HR team of the respective organizations.
5. In coming times, various Asian cities are likely to draw expatriated staff due to the amazing growth of the developing economies, particularly GDP resulting in better infrastructure, living standards, and per capita income.