They're willing to bear the relatively higher cost of
living
By ARTHUR SIM
(SINGAPORE) A cappuccino now costs 20 per cent more than it did
last year, an increase that has helped make Singapore the fifth
most expensive city in Asia-Pacific, but it may be a small price to
pay for the quality of life here.
In a recent Cost of Living report by Mercer Human Resource
Consulting (MHRC), Singapore moved up one position to rank as the
fifth most expensive city in Asia - after Seoul, Tokyo, Hong Kong
and Osaka.
However, in a separate study by Mercer on the quality of life,
Singapore had the highest score in Asia, and ranked eighth in the
Asia-Pacific region.
The findings of one study do not necessarily outweigh those of the
other, but Ajit Nambiar, business leader (Singapore and regional)
of information product solutions, MHRC, says: 'There does appear to
be some corelation.'
He did, however, also point out that a low-cost-of-living city
could have a relatively high quality of living.
"If we spent all our time eating
in Holland Village, then yes, the cost of living would be quite
high. But we don't.'
- Darcy Roehling,
an American
A correlation would be useful for foreign businesses which need to
weigh the pros and cons of locating here.
Terry O'Connor, president of the British Chamber of Commerce (BCC),
said the chamber has 'experienced the occasional case where the
increase in the cost of living has expedited decisions to relocate,
but not caused them'.
Mercer's Cost of Living study is based on nearly 200 products which
represent spending patterns segmented into 10 broad categories,
including household supplies, utilities and transport. Its quality
of living report provides values for qualitative perceptions to
establish an 'objective assessment of the quality of living
throughout the world'. It looks at factors including political and
social environment, economic environment, and schools and
education.
So despite rising costs here, it is heartening to know that BCC
members 'generally value Singapore's infrastructure, security and
quality of schooling', according to Mr O'Connor.
'Most of the companies are globally or regionally active and the
excellent connections to and from Singapore are compelling reasons
for locating here,' he said.
Competition between global cities in attracting talent has become
increasingly intense.
Monocle magazine, started by Tyler Brule, an International Herald
Tribune columnist and founder of Wallpaper magazine, has just
ranked Singapore 17th in its list of Top 20 most liveable cities in
the world.
Mr Brule explained that 'this is not a survey about the world's
most fun cities or centres where you can make the most cash - it's
about a combination of all of the things that make life in the city
better, and who's doing it best'.
The top five cities under his definition were Munich, Copenhagen,
Zurich, Tokyo and Vienna.
Darcy Roehling is an American who has lived in Asia for 15 years,
having moved from Hong Kong to Beijing to Singapore. Currently
director at Ogilvy pHuel, she says that the increasing cost of
living is a concern.
To mitigate housing costs, she has decided to buy a home here
instead and settle down with her husband and two young children.
'The quality of life here is exceptional,' she says
emphatically.
Ms Roehling does not live the life of a mem sahib. 'If we spent all
our time eating in Holland Village, then yes, the cost of living
would be quite high. But we don't,' she says.
Instead, Ms Roehling commutes between Yio Chu Kang (which is close
to her two children's school) and the city by MRT or taxi. 'I think
$25 for a taxi to town is OK,' she says. She also forgoes Starbucks
for the neighbourhood kopi tiam. 'We have scaled back a lot,' she
adds.
Ms Roehling believes that 'lights that work', and 'playgrounds in
every neighbourhood', are enough to keep foreign talent like
herself here.
Will it be enough to make up the projected population of 6.5
million? Perhaps.
New Zealander Owen Irving also seems happy enough here to be
prepared to bear the rising cost of living in Singapore. Mr Irving,
an executive with Cable and Wireless, relocated to Singapore four
years ago after working in London for about six years. 'I really
loved London at first but had enough after a while,' he said.
London is ranked by Mercer as the second most expensive city in the
world in terms of cost of living, while Singapore ranks 14th. More
telling perhaps is that Singapore scores higher than London in
terms of quality of living, ranking 34th rather than 39th.
Having come to terms with the cost of owning a vehicle and high
taxi fares, Mr Irving was understandably unhappy that the rent for
his condo in the East Coast went up 40 per cent. But still, he
resolved to stay. Like Ms Roehling, he too has decided to buy a
property here.
