Soaring cost of cars and utilities as well as a strong currency have
made Singapore the world's most expensive city, toppling Tokyo from the
top spot, according to a survey Tuesday.
The survey, which examines prices across 160 products and services in
140 cities, is aimed at helping companies calculate allowances for
executives being sent overseas.
"Improving
sentiment in structurally expensive European cities combined with the
continued rise of Asian hubs means that these two regions continue to
supply most of the world's most expensive cities," Jon Copestake, the
editor of the report, said in a statement.
The report said European cities were among the priciest in the
recreation and entertainment categories, reflecting "a greater premium
on discretionary income".
Oslo is third.
Zurich comes fourth.
The survey, which examines prices across 160 products and services
in 140 cities, is aimed at helping companies calculate allowances for
executives being sent overseas.
Sydney is fifth.
Tokyo's weakening yen saw it slide to sixth place, the position previously occupied by Singapore.
"Singapore's rising price prominence has been steady rather than
spectacular," said a report accompanying the survey by the research
firm.
It said a 40 percent rise in the Singapore dollar along with "solid
price inflation" pushed the country to the top of the twice-yearly
survey from 18th a decade ago.
The report said Singapore's curbs on car ownership, which include a
quota system and high taxes, made it "significantly more expensive than
any other location when it comes to running a car".
A new Toyota Corolla Altis costs $110,000 in Singapore compared to around $35,000 in neighbouring Malaysia.
Overall transport costs in Singapore are almost three times higher than those in New York, it said.
Tokyo was tied at sixth with Caracas. EIU said the Venezuelan capital's
position was largely due to the imposition of an artificially high
official exchange rate. Pic: Getty
New York, which serves as the base city for the survey, was ranked
26th, while Sydney and Melbourne came in at fifth and sixth
respectively owing to a strong Australian dollar.
Melbourne is at 6th.
Geneva
Copenhagen comes in at 10th.
"In addition, as a city-state with very few natural resources to
speak of, Singapore is reliant on other countries for energy and water
supplies, making it the third most expensive destination for utility
costs," the report said.
It also noted that Singapore is the priciest place in the world to
buy clothes, as malls and boutiques in its popular Orchard Road retail
hub import luxury European brands to "satisfy a wealthy and
fashion-conscious consumer base".
Singapore has one of the world's highest concentrations of
millionaires relative to its 5.4 million population. Its per capita
income of more than $51,000 in 2012 masks a widening income gap between
the richest and poorest.
India's financial centre Mumbai was ranked the
world's least expensive city, joining other South Asian cities including
Karachi, New Delhi and Kathmandu in the bottom of the pile.
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