Whilst Singapore still offer some of the most generous expatriate salary and benefits in Asia Pacific, it is without a doubt that it is worsening in US Dollar terms.
According to the findings of the latest MyExpatriate Market Pay survey by ECA International, the value of a typical expatriate package for Middle Managers in Singapore is now S$316 600, which is equivalent to US$235,000. The study pointed out that the packages have fallen to a five-year low in USD terms.
Despite this, the study pointed out that Singapore still offers some of the highest expatriate salary and benefits packages in the region, with some of the lowest tax rates.
ECA Regional Director for Asia Lee Quane said the city-state is a very attractive proposition for both companies and expatriates alike, with firms offering some of the most generous salary and benefits packages in the region.
"However, when tax is factored in, Singapore falls down to ninth in the Asia Pacific's overall most expensive locations as it has one of the lowest personal tax rates in the world. This ensures that Singapore remains one of the cheaper locations for companies to send their expats to in the region - behind Japan, Hong Kong and China," he said.
Singapore's rival Hong Kong has a value of a typical expatriate package for Middle Managers at aroFund S$356,800 or US$ 265,500, clinching the fourth highest in the region.
This has led to a widening gap between Singapore and Hong Kong expat packages. The total cost of Singapore's expatriate packages has fallen by 6% over this period, in USD terms, compared to Hong Kong's decline of just 2%, which is due to the relative strength of the Hong Kong dollar.
"In local currency terms, although expatriate salaries continue to rise in Singapore, reaching the highest levels since our survey began, the cost of the benefits element has significantly declined. This has meant that the total cost of an expatriate package for companies in Singapore has fallen over the past few years in local and USD terms," Quane explained.