Caracas has overtaken Luanda as the most expensive expat destination in the Americas and worldwide. The anticipated fall in cost of living in Venezuela has not happened, while the parallel exchange rate continues to exist it is not widely available.
New cost of living data shows that Moscow has moved down the rankings and London up; while Oslo, Zurich and Geneva remain fixed as most expensive European cities for foreign workers.
Singapore moves down one spot with Hong Kong moving up in the list of the most expensive cities in the Asia-Pacific region for foreign workers. A few changes have occurred over the last quarter however every city that was in the top ten list remains, with slight changes in position either up or down.
Doha in Qatar still at the top of the Middle Eastern region as most expensive city for expats, followed by Jerusalem, Abu Dhabi and Dubai in 2nd, 3rd and 4th respectively.
Xpatulator cost of living
Caracas, Venezuela moves up to top position again this quarter as the most expensive expat destination worldwide.
The adjustment plan that investment banks in Venezuela had forecast that President Nicolás Maduro would implement which included rate unification, an increase in the gasoline price, monetary discipline and tax reform has not happened.
End April saw public expenditure jump by 20% in real terms; while between late March and early April the central bank provided VEB 75 billion (USD 11.9 billion) in funding to state-run oil company — Pdvsa. The parallel forex market in the country will continue to exist due to the foreign currency control which is not likely to end, resulting in the lack of forex rate unification. What other changes in ranking can be found?
Known as the Republic of Singapore, it can be found in South Eastern Asia, and comprises islands between Malaysia and Indonesia.
The official languages are English, Chinese, Malay and Tamil. English is widely spoken and is the usual language for business and administration.
The Risk Rating for Singapore is Low. It is among the safest destinations in the world and is considered the most secure location in South-east Asia.
General Cultural Tips
Singapore is one of the most overtly Western cities in Asia.
The government has worked hard to promote Chinese culture and ensure that what it regards as ‘Asian values’ are preserved and respected.
It is advisable to respect traditional customs, festivals and ceremonies, even if they slow or impede business processes.
Smiles are sometimes used to hide embarrassment and discord, therefore sometimes Singaporeans may smile or laugh at times that Westerners find inappropriate.
Approximately 15% of Singapore Malays are Muslims and observe Islamic customs, such as the ban on alcohol, with varying degrees of strictness. These should be respected.
As with Muslim custom, the left hand is regarded as “dirty”, therefore when among both Hindus and Muslims, use the right hand to eat, pass food and objects or to touch another person.
If offering a gift to a Singaporean, they may decline it a number of times before accepting to avoid looking greedy, be persistent, and the gift will eventually be accepted.
When receiving a gift, do not open it immediately in front of the giver, as this may cause embarrassment.
Chewing gum in public places or dropping it on the ground is an offence, gum can be imported for personal use in private only.
It is an offence to smoke in air-conditioned restaurants, department stores, cinemas, public elevators and hospitals, those breaching these regulations are liable to be fined.
Business Cultural Tips
Upon introductions, business cards are usually exchanged and they should be presented and received with both hands on the card. Is is respectful to read the card carefully and if in a meeting, keep all business cards in plain view on the table.
Punctuality is regarded very highly and is important.
Establishing good social relationships is vital in setting up a successful business association, invitations to social engagements should be accepted to ensure this occurs.
Business suits tend to only be worn at official occasions, business dress is usually informal, with open-necked shirts and slacks/skirts the norm.
Asians in general try to be non-confrontational, if there is hesitation with an unenthusiastic ‘yes’ it may in reality mean ‘no’.
The government is extremely sensitive to political criticism, and visitors are advised to avoid discussion of political issues on first acquaintance, especially when dealing with officials.
Tips for Businesswomen
Although Singapore is a safe destination and there are no specific risks for female travelers or businesswomen it is advisable to follow commonsense security precautions such as dressing modestly to avoid drawing unwanted attention, saying no politely to invitations that would take you beyond your personal comfort levels.
Tipping
Tipping is neither expected nor encouraged as most restaurants and hotels impose an 10% service charge. However, visitors may tip waiters for exemplary good service.
Working week: Monday to Friday
Banking hours: 09.30-15.00 on weekdays, closing at 11.30 on Saturdays.
Office hours: 09.00-18.00 Monday to Friday; and a few hours on Saturday morning.
Want to know more about the cost of living in Singapore? Calculate how much you need to earn in Singapore to have the same spending power that you have now. Register, Purchase and Run the Salary Purchasing Calculator (SPPP).
Here is an interesting perspective of Doha, Qatar from an expat who has lived there for seven years and watched the diverse changes from the building of a city to sporting and cultural events….
Luanda, Angola ranks #1 while Caracas, Venezuela ranks #2. Unlike Luanda and Caracas, Oslo which ranks #3 enjoys low inflation, low unemployment, and one the highest GDPs per capita in the World.
Caracas in contrast has experienced rampant inflation, shortages and tight government controls on foreign exchange pushing it up the rankings. As the World’s fifth largest exporter of oil, Venezuela was once a top destination for skilled foreign oil and gas workers.
It’s attractiveness for expats has been steadily eroded by strict government regulations that limit hiring and compensation for foreign workers and by the soaring cost of living.
Luanda once again retains the position of most expensive destination globally and in Africa for expats due to its costly accommodation where expatriate housing is extremely expensive and imported produce and international private schooling excessively costly.
Singapore has risen to the top spot in the list of the most expensive cities in the Asia-Pacific region for foreign workers. Singapore leaped past previous list leader, Hong Kong and the long time most expensive city in the World, Tokyo.
Oslo, Norway jumped ahead of Zurich and Geneva to become the most expensive European city for foreign workers. The rankings, which are updated quarterly, saw Zurich fall from 1st among the World’s most expensive cities in mid-2013 to 6th in the first quarter of 2014. Oslo has moved from 10th to 3rd during the same period of time.
Doha ranked 127th in the World, making its cost of living comparable with cities like Glasgow, Scotland and Edmonton, Canada.
Top 10 City Rankings (all 13 baskets)
| April Ranking | Location | January Ranking |
|---|---|---|
| 1 | Luanda, Angola | 1 |
| 2 | Caracas , Venezuela | 5 |
| 3 | Oslo , Norway | 7 |
| 4 | Singapore, Singapore | 13 |
| 5 | Hong Kong, China | 6 |
| 6 | Zurich, Switzerland | 2 |
| 7 | Geneva, Switzerland | 4 |
| 8 | Monaco, Monaco | 11 |
| 9 | Tokyo, Japan | 12 |
| 10 | Sydney, Australia | 17 |
Top Ten City Rankings Excluding Housing, Education, Medical and Transport
While on international assignments ensure that you or your employee’s spending power is not compromised by changes in inflation, the availability of goods as well as exchange rates. Multinational companies will often include a cost of living allowance in their pay packages to ensure that employee’s remuneration packages are not compromised by changes in the relative cost of living.
Xpatulator.com city rankings show Luanda Angola at #1, Caracas Venezuela #2 and Oslo Norway #3.
Here are the Top 10 City Rankings including all 13 basket groups:
Top 10 City Rankings (all 13 baskets)
| April Ranking | Location | January Ranking |
|---|---|---|
| 1 | Luanda, Angola | 1 |
| 2 | Caracas , Venezuela | 5 |
| 3 | Oslo , Norway | 7 |
| 4 | Singapore, Singapore | 13 |
| 5 | Hong Kong, China | 6 |
| 6 | Zurich, Switzerland | 2 |
| 7 | Geneva, Switzerland | 4 |
| 8 | Monaco, Monaco | 11 |
| 9 | Tokyo, Japan | 12 |
| 10 | Sydney, Australia | 17 |
For the full listings go here.
The below grid shows the Cost of Living Index (COLI) variances over the last 6 years from January 2009 to January 2014
1. The most noticeable change in Cost of Living Index (COLI) is Tokyo from 142.96 to 122.9 index points, this is primarily due to the Yen weakening against the US Dollar, hitting a five year low in 2013 and having lost more than 20% to the US Dollar in the past year.
2. Luanda in Angola has moved from an index of 107.06 in 2009 to a 140.4 in 2014 making it the most expensive destination for expats in Africa and the world. This change is mainly due to supply and demand of expat accommodation which is costly. A rented house in a guarded community can cost between US$8 000 and US$12 000 per month, other costs for schooling, groceries and entertainment are also costly.
3. On an upward trend is Singapore moving from an index of 87.78 in 2009 to 122.3 in 2013, this is due to the continued expat influx resulting in a high demand for expat accommodation and goods, high transport costs, and high infrastructure costs, coupled with a strong currency. The Singapore COLI could continue this upward trend.
4. Caracas shows upward movement back to its high COLI in 2011 of 142.1, from 112.39 in 2009 to 137.4 in 2014, this is due to the high inflation and rentals, however there is again pressure on the currency to be devalued which should temporarily bring costs down in the short term.
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Expatriate International Cost of Living 