Attracting talent

HONG Kong emerges again as the most expensive city for expatriates in the world, according to Mercer, a consulting group. Their report opined that 5 out of the 10 most expensive cities in the world are located in Asia. Kuala Lumpur though isn’t one of them. In fact KL plummeted 38 places to No. 151. In other words, KL is now cheaper for expats compared with places such as Bangkok (74), Hanoi (106) and even Mumbai (82). Singapore was the fourth most expensive city, followed by Tokyo (5th), Shanghai (7th) and Beijing (10th).

This should not be surprising. Just ask retail estate agents that focus on leasing out high end condomiums in KL. They will tell you that they are experiencing a big drop in demand.

Rentals in such properties are sliding down, and some can’t find tenants. To be sure, that’s largely a function of the oil price crash. Malaysia has been an oil and gas hub for a long time but as the commodity’s price began sliding since 2014, many engineers and professionals linked to the industry have left the country.

Still, the fact remains that the cost of living in KL remains low. In comparison, other Asian cities remain among the world’s most expensive and yet manage to draw companies from locating talent there.

With KL’s cost of living so low now, it is right that the question be asked as to why it is not the location of choice for expats and multinational firms.

Do we have the right policies in place? What is lacking? Without that, we will remain a cheap place to live and that’s about