Kuala Lumpur falls to 35th most expensive location for expats in Asia, 175th globally

Kuala Lumpur is now the 35^th most expensive location for overseas workers in Asia, and the 175^th most expensive location globally. This was one of the findings of the latest cost of living research published by ECA International, the world’s leading provider of knowledge, information and software for the management and assignment of employees around the world.

In other parts of Malaysia, George Town, Kota Kinabalu, and Johor Bahru also experienced slight drops in their rankings, landing at 189^th, 195^th and 198^th respectively.

On the other hand, Singapore has risen eight places in ECA’s cost of living rankings to become the fifth most expensive location in the world for expatriates, marking its first time in the top five. The ascent was primarily driven by rapidly rising accommodation costs. Singapore is one of the few locations in Asia that moved up the rankings this year, owing to rents rising significantly in 2022 

Seoul and Yangon also buck trend of falling rankings in Asia 

Nearly all surveyed major locations in Asia have seen drops in the rankings, indicating that expatriates will find living in Asian cities relatively cheaper than the rest of the world in the past year. The fall is partly due to lower rates of inflation relative to other regions included in the research. Seoul and Yangon were among the exceptions. Seoul climbed one place to ninth in the rankings and Yangon rose four places to 167^th.

Quane advised: “Singapore and Seoul’s rise bucked the general downward trend in Asia largely due to major increases in accommodation costs (though in Seoul the increase was caused by changes limiting supply rather than increased demand), whereas Yangon’s rise was due to ongoing socio-political issues causing significant inflation for day-to-day goods and services.”

In South East Asia, Singapore maintains a significant lead in the rankings, further widening the gap between the city-state and its regional counterparts. Bangkok, the second most expensive city in the region after Singapore, dropped 13 places to become the 60^th most expensive location in the world.

Elsewhere in the region, Manila fell nine places to 75^th, while Jakarta dropped 22 places to 114^th.

East Asia highlights

Hong Kong has dropped one place and is now the second-most expensive location in the world, surpassed by New York. This shift marks the end of Hong Kong’s four-year reign at the top. 

Chinese cities fell in the rankings due to the impact of a weaker Chinese yuan and lower inflation rates compared to other countries. Shanghai and Guangzhou, while retaining their status as the most expensive cities in China, have fallen out of the global top 10 and now rank as the 13^th and 14^th most expensive cities in the world. 

Cities in Taiwan have also seen double-digit drops in rankings, with Taipei sliding 11 places to 31^st spot globally. Similarly, Japanese cities witnessed significant falls in the ranking as currency depreciation counteracted inflation rates that are at multiyear highs. Tokyo, which was consistently among the top five globally in the past five years, has dropped five places to 10^th.

Top Ten Most Expensive Locations for Expatriates – Asia

Global highlights

Rankings for all US cities have surged this year, driven by the strength of the US dollar and high inflation. New York has overtaken Hong Kong as the most expensive location in the world for expatriates, in particular, due to significant rises in rental costs as demand soared post-pandemic.

Meanwhile, trends among European capitals have been mixed. Geneva and London maintained their positions as the third and fourth most expensive locations in the world. However, Norwegian and Swedish cities plummeted in the rankings by an average of 10 places mainly due to their weakened currencies. On the other hand, nearly two-thirds of the locations in the Eurozone have risen in the rankings. Notably, France is an exception, with all surveyed French cities falling in the rankings. This decline can be attributed to slightly lower inflation rates compared to many other cities using the euro.

The ongoing Russian invasion of Ukraine continues to impact the cost of living in the warring countries themselves, the wider region and around the world. Despite Western sanctions, the Russian rouble has rebounded in the past year, pushing Moscow up 37 places to become the 25^th most expensive location in the world. 

Accommodation costs in locations where many Ukrainian refugees have fled the war have surged, making them more expensive for everyone including expatriates. Polish cities have seen the biggest impact with massive rises in rents, which have pushed Krakow up 23 places in the global rankings to 178^th and Warsaw up 11 places to 158^th.

Russians fleeing possible mobilisation as a result of the war have also had an impact on several cities, such as Dubai and Tbilisi. Rents in Dubai rose nearly a third pushing the city up to 12^th in the global rankings while rents also rose by more than a fifth in Tbilisi as supply could not rise to meet the increased demand from Russian expatriates. This resulted in a significant climb of 65 places for the Georgian city, now ranked 102^nd. Furthermore, a stronger currency also contributed to Tbilisi becoming more expensive for visitors. However, Istanbul is the biggest riser in this year’s rankings, up 95 places to 108^th. While the war has impacted the city, prices have surged by over 80% mainly due to the economic policies of the recently re-elected President Recep Tayyip Erdoğan.

Top Ten Most Expensive Locations for Expatriates – Global