The Great Singaporean Expat Exodus

The Great Singaporean Expat Exodus

If you know a lot of expats based in Singapore, you would also have noted something else: a lot of them are leaving.

Over the years, my wife and I have come to know many people in Singapore's expat community. We are fortunate to have built up friendships with people from all over the world. However, my wife now seems to have a most regular and discomfiting duty to pay attention to: saying goodbye to our friends - for many of them are leaving.

There was always a low level of turnover among the expats, in that some would come to the end of their terms here, and move on. In recent months, however, there seems to be a great upsurge in departures. Companies are simply deciding that they no longer need, or can no longer afford operations in Singapore and are relocating - or firing - their staff. Hence, the expat exodus, with so many leaving the country, often unwillingly (since they have come to like it, for various reasons.)

Another common situation, these days is the company expense cutting ultimatum. It goes a little bit like this: either you accept a local salary package (in contrast to the expat package they are presently on), or you have to go somewhere else (relocate to a different country of operation), or leave the company. The problem with this kind of ultimatum is that they can't afford the international schools for their children and the rent on their homes, on a local package. It is equivalent to telling them, directly, that they must leave Singapore - because the alternative is not workable, for them. Thus, they generally up and leave.

What is usual with these departing expats is that they are highly skilled. Companies are getting rid of good people, because these good people are well paid, to cut their operating costs in difficult times. It seems to me, however, that they are weakening themselves in so doing. The skills of these staff are not being replaced.

Singapore is now the tenth most expensive city on Earth to live in. This information, combined with the upsurge in expat departures amongst our social circle, makes me wonder if Singapore is making itself too expensive to be internationally competitive. If companies can do business just as readily, elsewhere, for less, then they will relocate operations. Singapore will lose jobs and revenues if this happens. It seems on the evidence of what we see among those we know, that this is already happening. Even if companies don't completely pull out of Singapore, they do seem to be downsizing operations. That is, of course, just a first step to giving up operations altogether.

Were Singapore not the tenth most expensive place to live in the world - were it, for instance, the fiftieth or one hundredth most expensive place to live - then I don't think any of this downsizing and relocation would be occurring. (For comparison's sake, London is presently the 27th most expensive city in the world to live in. Singapore is considerably more expensive, now, than London.)

Personally, I don't think becoming one of the most expensive places to live in the world, is a sign of success. To me, it is a sign that something is going wrong. Many companies seem to think so, too...so they are relocating their staff.

As long as Singapore remains expensive to live in and expensive to do business, this expat exodus will continue. I wonder how long it will be, before the powers-that-be, notice that their economy is weakening, as a result of this talent flight? The big question, for me, is whether they will do anything about it. Or even, whether there is anything they can do about it. We will see. In the meantime, my wife and I have more goodbyes to attend to.

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