Singapore Reigns Supreme: Singapore has been named the world’s most expensive city for the ninth time in 11 years. The Economist Intelligence Unit’s (EIU) newest analysis of 173 nations ranks Singapore and Zurich, Switzerland, as the most expensive places to live. While Zurich’s ascent is attributed to the robust Swiss franc and elevated prices in various sectors, Singapore’s continued dominance in the cost-of-living realm is a multifaceted tale.
The city-state, recognized as Southeast Asia’s financial hub, grapples with soaring prices, especially in the realms of transportation, clothing, groceries, and alcohol. Government-imposed controls on car numbers have propelled Singapore to boast the world’s highest transport prices.
The city’s allure as a premier business investment destination has also contributed to its high living costs. Singapore’s magnetic pull for professional talent has triggered a surge in housing demand, witnessing a remarkable 50% cumulative increase in home rents since 2021, according to a recent Knight Frank report. The consultancy anticipates a moderation in rents as new residential units catch up with demand, with approximately 20,400 private residential units expected to be completed by the end of 2023.
Also Read: Singapore Economic Revival on the Horizon: MAS Forecasts Improved Growth”
Hong Kong, another Asian city, clinched a spot in the EIU‘s top 10 but slid one notch to secure the fifth position. In contrast, several mainland Chinese cities experienced a drop in their rankings over the past 12 months, influenced by factors like a weakening renminbi, sluggish post-pandemic recovery, and subdued consumer demand.
As the world grapples with a cost-of-living crisis, reflected in a 7.4% average year-on-year increase in prices for commonly used goods and services, Singapore stands as a symbol of economic prowess amid the complexities of a global economy navigating inflationary challenges. The city-state’s resilience and allure in the face of such economic intricacies underscore its continued dominance in the realm of high living costs.