Vol. XXII, No. 155 [ BusinessWorld Online ]
Wednesday, March 11, 2009 | MANILA, PHILIPPINES
SINGAPORE — Manila figures as one of the world’s 10 least expensive cities for expatriates, with cost of living just half that of New York, said an Economist Intelligence Unit (EIU) survey received here late Monday.
The survey put Manila in the league of four other Asian cities with this distinction, namely: Kathmandu, New Delhi, Mumbai and Karachi, where cost of living is just over a third of that of New York.
In the survey, EIU compared the cost of products and services in 140 cities. It is aimed at helping companies calculate allowances for executives and their families being sent overseas.
At the other end of the spectrum, the strong yen has made Tokyo and Osaka the world’s most expensive cities for expatriates, while sharp currency declines cut living costs in Australia and New Zealand, the same survey showed.
Because the yuan is tightly linked to the US dollar, costs in Chinese cities increased as other currencies tumbled against the greenback.
Oslo and Paris were the world’s costliest cities in the previous EIU survey.
Shanghai, with a cost of living only 2% cheaper than New York’s, is currently more expensive than Sydney, said the survey carried out last month.
Seven of the world’s 10 most expensive cities in the latest survey are in Europe, with Singapore joining Tokyo and Osaka as the only Asian cities on the list.
"Two factors drive the relative cost of living: local prices and exchange rates," said Jon Copestake, the editor of the report.
"Normally, our ranking of cities by cost of living is relatively stable, butthe current global climate changes in exchange rates have significantly altered our assessment of the most and least expensive cities."
France’s capital Paris is now the world’s third-most expensive city, down from number two in the EIU’s previous survey, followed by Copenhagen and former number one Oslo.
Zurich was in sixth place, while Frankfurt and Helsinki tied in 7th place, followed by Geneva.
"The decline in European currencies, most notably the euro, sterling and Norwegian krone, has driven a significant weakening in the relative cost of living for many European cities," it said.
Singapore, Southeast Asia’s most advanced economy, was ranked as the 10th most expensive city worldwide, followed by Hong Kong, which rose to 11th place from 28th.
Shanghai rose to 29th place from 45th, while Beijing rose to 36th place from 58th. Sydney fell to 35th, down from 17th.
Thailand’s capital, Bangkok, is number 72 in the worldwide rankings, but is the second-most expensive city in Southeast Asia after Singapore.
Kuala Lumpur in Malaysia placed 90th worldwide and number three in Southeast Asia. — AFP
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