Who Says Expats Make Big Bucks In Singapore?

[george]

Who says expats make big bucks here?

SINGAPORE: -- They earn less than counterparts in India, China, Thailand and many other Asian countries. But conditions here still a big draw

SURPRISE.

That expat sipping a beer at a swanky pub in Boat Quay is actually earning much less than his colleagues in most other Asian countries.

But he'd much rather sip his beer here than anywhere else.

A survey by Hong Kong-based HR Business Solutions said pay isn't the biggest draw for the many expatriates still flocking to Singapore to work.

While expats here command higher salaries than locals, their earnings are lower than that of expats in many countries, the survey, reported in The Business Times, said.

Total earnings of expats in Singapore - especially those in country manager and function-head positions - are 1.6 times those of their local counterparts.

But at about US$225,000 ($378,000) yearly, what expats make here lags expat earnings in countries like Japan (US$360,000), India (US$330,000), Thailand (US$270,000) China (US$235,000) and other Asian countries.

ON PAR

Expat earnings here are about on par with Taiwan but are higher than in Indonesia and Malaysia, according to the survey which covered 7,261 execs in 470 companies.

Singapore also has the biggest expat community in the region, except China.

Of the 1,802 executives polled in Singapore, 14 per cent were expats. The survey covered 1,850 executives in China, of which 29 per cent were expats.

'China has the most expatriates because the managerial supply cannot meet demand as a result of the breakneck economic growth over the past two decades,' says Ms Elaine Ng, HRBS's managing principal.

So if salaries aren't the major factor drawing expats to Singapore, what is?

Ms Ng, a Singaporean and formerly with New York-based Mercer Human Resource Consulting, says a major factor is Singapore's better living conditions.

The big presence of MNCs and the Government's open-door policy are also factors, she says.

Yet another reason is the large number of regional job positions here. A big chunk of those positions - up to 47 per cent, says the survey - are still being filled by expats.

Although Singapore's hold is slipping, the country continues to top the Asia-Pacific ranking in the amount of regional jobs on offer. Nearly two in three jobs polled carried regional responsibilities.

The figure is half for Hong Kong, which has the second biggest number of regional jobs.

'Despite severe competition from countries around the region, Singapore continues to maintain its lead as an Asia-Pacific hub where MNCs continue to base their regional HQs,' Ms Ng said.

She also said wage growth here is at the bottom fourth among 14 Asia-Pacific countries.

'Managerial labour costs in Singapore are 21 per cent lower than Hong Kong and Japan.

'While some companies may consider moving their Asia-Pacific HQs elsewhere - and especially to China, where business operations are huge - not all companies think in the same mode,' she said.

--AsiaOne 2004-10-20

[snoophound]

But at about US$225,000 ($378,000) yearly, what expats make here lags expat earnings in countries like Japan (US$360,000), India (US$330,000), Thailand (US$270,000) China (US$235,000) and other Asian countries

And what roles are these salaries for???

[think_too_mut]

I know of few local software engineers from my company. They are on 120-130K US per year.

Taking home 9-10K US$ each month.

[califdann]

Gee, where do I apply for the $200K Yr positons?

DMC

[pnustedt]

One of the attractions of working as an expat is lower taxes and a package which includes many benefits - which makes nearly all of your income your disposal income.

I'm not too sure about Sing but I work in HK and pay 15% income tax, no sales tax - accom. provided (but some tax paid on it) but car and other benefits and investments not taxed. Whereas when I worked in UK I paid 40% of earnings (car, etc. added on to earnings) and 17.5% of all I spent. Plus all the stealth taxes - NIC, Council Tax, etc. etc.

Additionally, you pay your tax at the end of the year in HK - so you have use of your money for the year for tax-free investment.

I have been offered opportunities and could earn more in the UK but would be considerably worse off - financially and quality of life.

I guess they have to pay more in places like India, China and even Thailand as they are perceived as less attractive places to live with higher taxes, etc.