Manila is 109th most expensive city for expatriate professionals

Philippine economic growth continues to attract talent, business, and investments from all over the world, but findings of Mercer’s 2019 Cost of Living study signal the need for a deeper look at factors behind the dramatic increase in cost of living from 2018 to 2019.

Manila went up 29 notches in global ranking as the most expensive cities for expatriates this 2019, Mercer’s annual Cost of Living Survey released on Wednesday showed.

Compared with 138th the previous year, Manila was the 109th most expensive city for expatriates this year—out of the 209 cities covered by the survey.

This is the fourth-sharpest climb across the globe, after Ashgabat (up 36 spots to No. 7), Phnom Penh (up 34 spots to 108), and Havana, Cuba (up 32 spots to 133).

“While the Philippines’ robust economic growth continues to attract talent, business, and investments from all over the world, the findings of Mercer’s 2019 Cost of Living study should signal its public and private sectors to take a deeper look and start a conversation on which factors are behind the dramatic increase in its cost of living from 2018 to 2019, Mario Ferraro, Mercer’s Mobility leader for Asia, Middle East, Africa, and Turkey, said in an emailed statement.

Such dialogue could have a significant impact on the country’s competitiveness, Ferraro noted. “And how [the spike in cost of living] can be addressed or mitigated to ensure the country’s continued competitiveness.”

Mercer’s survey uses New York as the base city for all comparisons, with currency movements measured against the US dollar.

The survey includes cities across the globe, which takes into consideration the cost of more than 200 items in each location—including housing, transportation, food, clothing, household goods, and entertainment.

“Cost of living is an important component of a city’s attractiveness for businesses,” said Yvonne Traber, Mercer’s Global Mobility Product Solutions leader.

“Decision makers increasingly acknowledge that globalization is challenging cities to inform, innovate, and compete to foster the kind of satisfaction that attracts both people and investment—the keys to a city’s future,” she added.

Mercer’s 2019 survey found that eight out of the top ten of the world’s most expensive cities for expatriates are Asian cities, resulting from high costs for expatriate consumer goods and a dynamic housing market.

This year's list was topped by Hong Kong, Hong Kong; Tokyo, Japan; Singapore, Singapore; Seoul, South Korea; and Zurich, Switzerland.

Rounding up the top 10 are Shanghai, China; Ashbagat, Turkmenistan; Beijing, China; New York City, United States; and Shenzhen, China.

“In a skill-focused economy driven by digital disruption and the need for a globally connected workforce, deploying expatriate employees is an increasingly important aspect of a competitive business strategy for global companies,” said Ilya Bonic, president of Mercer’s Career Business.

“There are numerous personal and organizational advantages for sending employees overseas, including career development, global experience, new skillsets, and re-allocation of resources. By offering fair and competitive compensation packages, organizations can facilitate moves that drive business results,” Bonic noted.

Mercer is a wholly-owned subsidiary of New York-listed Marsh & McLennan Companies, a global professional services firm.

The company also provides advice and market data on international and expatriate compensation management, and works with multinational companies and governments worldwide. —VDS, GMA News