Jakarta climbs to 70th most expensive Asian city

JAKARTA: Jakarta, Indonesia's capital, continues to creep up cost of living ladder on stronger currency, positioning it as 70th most expensive location within Asia. ECA International in a cost of living survey released due yesterday said that the position
News Editor | 03 Desember 2010 01:32 WIB

JAKARTA: Jakarta, Indonesia's capital, continues to creep up cost of living ladder on stronger currency, positioning it as 70th most expensive location within Asia. ECA International in a cost of living survey released due yesterday said that the position is far below other peer cities in Southeast Asia, like Singapore (8th), Kuala Lumpur (31st) and Bangkok (37th). ECA International is the world's leader in the development and provision of solutions for the management and assignment of employees around the world.Malaysian locations have seen some of the largest uplifts in cost of living between surveys. A stronger ringgit coupled with price rises has pushed Kuala Lumpur up from 36th to 31st position within Asia and from 207 to 185 globally. The strengthening of the Singapore dollar against major currencies, together with rising prices have contributed to the locations ongoing rise up the ranking from 9th position last year.The cost of living for international assignees in Singapore is catching up with the levels of some of its neighbours: two years ago there was a 15% difference with Hong Kong. This fell to 7% a year ago and now stands at just 2%. Furthermore, Singapore is now ranked above Beijing.Globally, Singapore has moved from 79th position to 42nd. The survey shows it to be more expensive than central London and over the last year it has moved above a number of eurozone locations where the currency has weakened including Munich and Rome. "Singapores continued rise up the ranking mainly off the back of the strength of its currency is a double-edged sword," says Lee Quane, Regional Director, Asia of ECA International, in a press release at the website. "For companies bringing senior talent into Singapore the cost of an assignment will increase as higher allowances are required to maintain employees purchasing power. On the other hand, companies sending employees out of Singapore can apply lower cost of living allowances and still provide sufficient remuneration to maintain a good standard of living." Regionally, Tokyo maintains position as most expensive location in Asia and worldwide on ever-strengthening yen. Tokyo maintains its position as the most expensive location in Asia and worldwide for international assignees. The gap between the Japanese capital and other locations in the region is widening. A year ago the difference in cost of living between Tokyo and Hong Kong was 45%, now it's 55%. Korean locations have moved up and down the rankings in recent times following the fortunes of the fluctuating won with Seoul having risen from 56th to 22nd place globally between surveys. Hong Kong is the 6th most expensive location within Asia. The SAR has slipped from last years 5th position as a result of Seouls rise in the ranking. The rebounding of the won means that cost of living for assignees to the South Korean capital has risen above Hong Kong for the first time since the 2008 financial crisis.The weakness of other currencies, particularly the euro, has contributed to Hong Kongs rise when we look at its position globally. Hong Kong has risen back up to 32nd position after dropping a year ago to 52nd place. "With many parts of Asia becoming more expensive for assignees, international HR managers are not only having to look at increasing the cost of living allowances they award to their assignees in locations such as Seoul and Tokyo, but they are also having to consider introducing such allowances for the first time in typically low-cost locations such as Bangkok and Jakarta, where the relative cost of living has increased considerably over the past 12 months," explains Quane. (NOM)

Simak berita lainnya seputar topik artikel ini, di sini :

Editor : Muhammad Fariz Aulia

Berita Terkait



Berita Terkini Lainnya



Top