Thursday, July 9, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]
MANILA IS the cheapest place for expatriates to live among major cities in Southeast Asia, according to the latest Cost of Living Survey from consulting firm Mercer.
Singapore, the 10th most expensive city in the world, still topped the Association of Southeast Asian Nations (ASEAN).
Vietnamese cities Hanoi and Ho Chi Minh city ranked 58th and 69th, respectively, followed by Kuala Lumpur (96), Bangkok (98) and Jakarta (106). Manila was last at 126th.
In a statement issued yesterday, Mercer said Asian and European cities dominated the top 10 costly cities. Proof of this was Singapore’s three-notch improvement to become the 10th most expensive city in the world for expatriates, while Tokyo knocks Moscow off the top spot.
It said "significant currency fluctuations and strengthening of dollar cause major reshuffle in the ranking with Seoul dropping from fifth to 51st place as the won weakened against the dollar."
Previously in the top 10, London dropped 13 places to rank 16, while New York joined the top 10 list. Johannesburg was the cheapest city to live, replacing Asunci�n in Paraguay.
Osaka was in second position, up nine places since last year, whereas Moscow was now third. Geneva climbed four places to fourth position and Hong Kong moved up one to reach fifth.
Several other Asian currencies including the Korean won and Indian rupee have weakened against a strong US dollar causing cities in those countries to drop in the rankings.
Mercer said Indian cities have moved down the ranking due to the rupee’s weakening against the dollar. New Delhi moved from 55th to 65th place and Mumbai dropped from 48th to 66th.
On the other hand, Chinese cities experienced the reverse effect as the renminbi performed relatively strongly compared to most other currencies.
Beijing was in ninth place, having moved up 11 places to join the global top 10. Shanghai, Shenzhen and Guangzhou follow in 12th, 22nd and 23rd place, respectively, the statement said.
Mercer said the survey used New York as base city for the index and scores 100 points. All cities are compared against New York and currency movements are measured against the US dollar. Tokyo scored 143.7 points and is nearly three times as costly as Johannesburg with an index score of 49.6.
The survey covers 143 cities across six continents and measures the comparative cost of over 200 items in each location, including housing, transport, food, clothing, household goods and entertainment.
Mercer said the survey helps multinational companies and governments determine compensation allowance for expatriate employees.
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