Favourable living conditions make Singapore the best place in the world for Asians to live in, according to a Location Ranking Survey conducted by ECA International, the world's leading knowledge and solutions provider for International HR professionals.

Undertaken annually, ECA International’s Location Ranking Survey compares living standards in 254 locations globally according to categories including climate, air quality, health services, housing and utilities, isolation, social network and leisure facilities, infrastructure, personal safety and political tensions. Overall scores are used by ECA Member companies to establish allowances which compensate expatriate staff for the difficulties of living in their assignment location.

“Excellent infrastructure and facilities, coupled with its cosmopolitan make-up, low crime rate, socio-political stability and favourable climate make Singapore a very favourable location for foreigners, and justify its top spot in the rankings,” explains Lee Quane, General Manager, ECA International Hong Kong.

Locations in Australia, New Zealand, Japan, Canada, Denmark, Netherlands, Belgium, Germany, Ireland and Switzerland join Singapore to make up the top ten favourable locations for Asian expatriates to live in. The least favourable place in the world to live in is Baghdad, followed by Kabul and Karachi.

Looking at the 48 Asian locations included in the survey, Macau, Taipei, Bangkok, Kuala Lumpur and Georgetown join Singapore, Kobe, Osaka, Tokyo and Hong Kong to make up the top 10. Karachi, Pyongyang, Islamabad, Dhaka and Dili are the locations in Asia which afford foreigners the least favourable quality of living.

Living Standards Improving Most in Asia

Comparing this year’s ranking with 2002’s, living standards in Asia have improved significantly, reflected by a 14-position rise up the rankings, on average, across the region.

“Such an overall rise in the global ranking reflects significant improvement in the region, with locations in China and India benefiting the most from recent economic development and foreign investment,” comments Quane. “Only Eastern European locations, which have also experienced rapid economic growth, can match such an improvement in living standards for foreigners during this period,” he adds.

Within Asia, Wuhan and Xi'an have shown the biggest improvement in living standards, both moving up 46 places in the rankings. Chengdu, Chongqing, Dalian, Nanjing, Shanghai, Shenzhen, Xiamen, Macau, Bangalore, Chennai, Mumbai, New Delhi, Ulaanbaatar, Vientiane, Phnom Penh, Georgetown and Tokyo have also risen by more than 20 places over this five year period.

Out of the 48 Asian locations in the survey, only 8 locations have fallen down the rankings between 2002 and 2007, with Port Moresby, Jakarta and Bandar Seri Begawan deteriorating the most in terms of living standards afforded to foreigners. Hong Kong has fallen from 18th to 23rd position during the period, and has been overtaken by Tokyo, amongst others, while Kuala Lumpur has fallen from 60th to 63rd.

It is not all good news for Asia, however, with a five year comparison highlighting that some aspects of living standards, such as air quality, are deteriorating. Air pollution in a number of locations, such as Port Moresby, Jakarta, Kuala Lumpur, Beijing and Hong Kong, has worsened in recent years, which has led to an increase in the associated health risks. Such deterioration reflects some of the negative impacts of economic development in Asia.

Implications for Expatriate Movement in Asia

An improvement in living standards should encourage mobility to locations historically considered ‘hardship’ postings, such as China and India. As a result, multinational companies should find it easier to encourage their internationally mobile employees to undertake assignments in these locations, while assignment costs may also be reduced.

“With the general improvement in living conditions in Asia over the past five years we now recommend lower ‘hardship’ allowances in many places, particularly some locations in China and India”, adds Quane. “This is making a number of assignments in the region more cost-effective, helping Asia to maintain its competitive edge, since these allowances, which are often a costly component of an expatriate’s salary package, are being reduced.”

“Conversely, deterioration in living standards may erode a location’s ability to attract overseas talent and may result in a company having to pay higher premiums. One example is Jakarta, where we recommend companies sending Asians to this location pay higher allowances than we did five years ago.”

The best locations in the world for Asians to live in