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Hong Kong ranks fourth among seven selected cities according to the results of a comparative study on the cost of living for expatriates. Topping the list is Tokyo, followed by New York and London. Singapore took the fifth place, followed by Shanghai and Taipei.
The study was carried out by the Economic Analysis Division and the Census and Statistics Department. A private sector agent was commissioned to collect updated data for comparing the cost of living for expatriates in the seven cities.
Announcing the results of the study at a press conference today (January 24), the Government Economist, Mr K Y Tang, said the rankings in the latest round with August 2001 as reference month were similar to those in the last round of the study in September 2000.
"Excluding housing cost, Tokyo remains the most expensive city, followed by New York and London. Hong Kong recedes to the fifth place and shares the same ranking with Shanghai, while Singapore moves up to the fourth. Taipei remains the lowest cost city amongst the seven cities included," Mr Tang said.
Analysed by major consumption category, Hong Kong ranks second, after New York, in terms of the costs of housing, and after Tokyo, in terms of the costs of miscellaneous goods. It ranks third in terms of the costs of alcoholic drinks and tobacco; fourth in terms of the costs of food, utilities and consumer services; and sixth in terms of the costs of clothing and transport. It is least expensive in terms of the costs of durable goods.
"Taking Hong Kong as the reference city for comparison, in overall terms the cost of living for expatriates in Tokyo is considerably higher than in Hong Kong, by around 34%. This is due to the much higher costs in Tokyo of the various major consumption categories, except those of housing, alcoholic drinks and tobacco," Mr Tang said.
"The cost of living in New York and London is also distinctly higher than in Hong Kong, by around 24% and 16% respectively. In New York, the costs of consumer services, utilities, alcoholic drinks and tobacco, durable goods and housing are much higher than in Hong Kong, while in London, the costs of durable goods, transport, utilities and consumer services are markedly higher than in Hong Kong."
"Compared with Hong Kong, the cost of living for expatriates in Singapore is around 10% lower. In Shanghai and Taipei, it is lower by around 17% and 29% respectively.
"While the costs of housing, utilities, miscellaneous goods and consumer services are lower in Singapore than in Hong Kong, the costs of durable goods and transport are markedly higher in Singapore.
"For Shanghai, the costs of transport and durable goods are higher than in Hong Kong, while the costs of housing, utilities, alcoholic drinks and tobacco, miscellaneous goods and consumer services are markedly lower. As to Taipei, the costs of housing, utilities, and alcoholic drinks and tobacco are much lower than in Hong Kong, while the costs of clothing and durable goods are higher."
Mr Tang noted that excluding housing, the cost of living for expatriates in Tokyo was around 58% higher than in Hong Kong, while those in New York and London were both around 26% higher. "The cost of living in Singapore is around 12% higher than in Hong Kong. On the other hand, while the cost of living for expatriates in Shanghai is about the same as in Hong Kong, that in Taipei is around 4% lower."
Outlining the methodology adopted for the study, Mr Tang said it was similar to that of a standard consumer price survey.
For each of the seven cities, price data have been collected on a total of 101 commodity/service items, chosen to represent the basket of consumer goods and services purchased by a typical US expatriate household across the seven cities concerned.
"The items priced should be sufficiently typical for the city itself yet also comparable across the seven cities," Mr Tang said.
The 101 commodity/service items are grouped into 41 commodity/service categories and further into nine commodity/service sections. The expenditure weights as enumerated for the consumption pattern of a typical US expatriate household are then applied.
"The Government intends to conduct this comparative study on an annual basis with August/September as reference month," Mr Tang said.
The report on the comparative study on cost of living for expatriates across the seven cities will be put on the website of the Financial Services Bureau (http://www.info.gov.hk/hkecon/cost/index.htm).
Three tables relevant to the study are at annex. Table 1 gives the summary rankings of cost of living for expatriates in the seven cities covered by the study. Table 2 gives the summary ratios of cost of living for expatriates in the seven cities covered by the study. Table 3 shows the various commodity sections and categories as well as the weightings used for compilation of the summary ratios.
End/Thursday, January 24, 2002
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