HK vs Singapore: Which city is better for expats?
IN THE RACE to lure talent for global firms’ regional headquarters, Hong Kong and Singapore have long been neck-and-neck. While many companies make their managers locate in one or the other city — often depending on whether their duties focus more on Southeast Asia, or on China — others give top talent a choice.
Back before Hong Kong’s handover to Chinese rule in 1997, Hong Kong had an edge due to expectations of the opening of China’s economy, the city’s role as the entrepot on the border, and the banking industry poised to capitalize on it. Now, Singapore’s push into innovation and technology has the Lion City on an upswing, said Karen Koh of recruiting and consultancy firm HRnetOne, who works in the Singapore-based company’s Hong Kong office.
“Twenty years ago, Hong Kong was a more popular expat destination than Singapore because of the job opportunities or perception that banking was much hotter in Hong Kong,” she said. “I don’t think banking will ever be able to compare with Hong Kong, but other sectors in Singapore have come up.”
For expatriates considering which city to choose, here’s the ultimate Hong Kong versus Singapore guide, with prices converted to US dollars:
1. First things first: your salary
The top salaries in Hong Kong for jobs in the financial industry are about 25% higher than in Singapore on average, according to data compiled by Bloomberg from the 2017 salary survey of recruitment firm Robert Walters Plc. That trend carries across most industries.
Personal income taxes in the two cities are relatively low. The top rate in Singapore for income above the first $230,500 is 22%; in Hong Kong, the top rate is 17%. 2. What you spend your money on
Those extra dollars don’t necessarily get you as far in Hong Kong, however. The city has overtaken Tokyo as the most expensive in the region and second overall in the world for expatriates, behind only Angola’s capital Luanda, according to the latest cost of living survey from consultancy firm ECA International. Singapore, by contrast, is 24th on its list. —