HONG KONG – The cost of expatriate pay packages in Singapore climbed 4 per cent in 2022, while those for foreign professionals in Hong Kong fell, according to a new study by expat consultancy ECA International.

Total pay and benefits packages for average expat middle managers in Singapore rose to US$258,762 (S$342,218), mainly due to higher rental costs. The increase narrowed the gap with rival Hong Kong, which saw typical expat packages fall 2 per cent to US$278,020.

Despite the drop in real terms, Hong Kong climbed three places to become the world’s fifth-most expensive place to send expat workers. Singapore sat at 16th place in the rankings.

“The surge in the cost of expatriate accommodation in Singapore is being felt by locals and expats alike, reflected in the 9 per cent increase in the cost of benefits in expatriate packages when measured in USD terms,” said Mr Lee Quane, ECA International’s regional director for Asia.

“Only the fact that salaries fell by US$4,000 prevented Singapore from climbing higher in the rankings.”

ECA International noted that in contrast to 2022, expat salaries in most locations in Asia fell in 2023 resulting in a drop in the total cost of pay and benefits in more than half of the locations when measured in US dollar terms.

Japan, India and China took second, third and fourth spots in the MyExpatriate Market Pay Survey global ranking.

As at 2022, Malaysia had the lowest expat salary and benefits package in the region. Total package costs fell by 4 per cent to US$164,696, with salary costs down 6 per cent.

The top spot was retained by Britain, where the average package – comprising salary, tax and benefits such as accommodation, international schooling and utilities – amounted to US$441,608, though salary made up only 18 per cent of the total.

A strong US dollar pushed the United States up seven places to land at No. 9 in the rankings, with the average package rising to US$272,770, despite a slight dip in expat salaries. BLOOMBERG