Rents skyrocket, Singapore is at risk of brain drain
May 09, 2023
Singapore, May 9: Companies in Singapore are subsidizing their employees' rent and even relocating them to more "breathable" cities in the region after a sharp rise in rents in the lion island nation.
Non-resident foreigners make up 28% of Singapore 's 5.6 million people , according to Reuters on May 9, citing official government figures. Most are renters, leaving them vulnerable to rising rents in 2022.
Rents for private property in Singapore increased by about 30% last year, and luxury apartments were priced higher than in London (UK) and New York (US) in the fourth quarter of 2022.
Mr. James Ong, an engineer from Malaysia, is supported by the company 70 SGN/month to pay the rent. However, this number is just like salt in the sea when the rent he has to pay each month is now 4,000 SGD, an increase of 50% compared to before.
In March, the European Chamber of Commerce released the results of a survey that showed that about 40% of the 268 companies polled had provided more than SGD 1,500 a month for employees to rent. If the situation continues to deteriorate, 70% of companies are willing to move foreign employees out of Singapore and to other cities in the region.
The departure of skilled foreign workers due to soaring house prices could mark a setback for Singapore in its quest to fulfill its ambition to become the world's center of technology and innovation. These factors also reduce Singapore's attractiveness to foreign companies and workers compared to Hong Kong
"We are considering options ... to decide whether Singapore's advantage can offset the high rents compared to other cities," said Ms. Lee Soo Min, managing director. run a digital advertising agency. Ms. Lee has seen rents rise by 70% and is considering moving her job to another Asian city.
Source: ThanhNien Newspaper
