Bangkok has been named the third most expensive city in Southeast Asia for international workers, according to the latest rankings by business adviser Mercer. This year’s assessment included 226 cities across five continents and evaluated the comparative costs of over 200 items in each location, encompassing housing, transportation, food, clothing, household goods, and entertainment.
Singapore leads the region as the costliest city, followed by Phnom Penh, the capital of Cambodia. Following Bangkok, the list includes Manila, Jakarta, Hanoi, Bandar Seri Begawan, Kuala Lumpur, and Vientiane.
Globally, Bangkok was ranked 129th, dropping 24 places from the previous year. The top three most expensive cities worldwide for international workers remain unchanged from last year, with Hong Kong, Singapore, and Zurich holding the top positions.
Other expensive cities in Asia include Shanghai (ranked 23rd), Beijing (25th), and Seoul (32nd). Mercer highlighted that economic factors such as inflation and exchange-rate fluctuations significantly impact the cost of living in major cities, directly affecting the pay and savings of internationally mobile employees.
The report also noted that economic and geopolitical volatility, local conflicts, and emergencies have driven up costs in areas such as housing, utilities, local taxes, and education.
“The cost-of-living crisis has already had a significant impact on the mobile talent employed by multinational organizations,” Mercer stated. “For businesses, this has made it more difficult to attract and retain top talent. It has also increased the costs of compensation and benefits, limited talent mobility options, and raised general operational costs.”
Mercer advised organizations to remain informed about cost-of-living trends and inflation rates in the locations where they operate. Understanding how price changes affect their employees is crucial.
“Organizations should explore innovative solutions to address these issues to ensure the well-being and satisfaction of their employees,” the company recommended. “Any solutions should be tailored to meet the specific needs of the businesses, places, and people involved.”
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