Expats earn more in Hong Kong, but prefer to live in Singapore

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Expatriates living in Hong Kong earn 10% more than those in Singapore, but the Lion City has once again outranked it as a better place for them to live, according to HSBC’s Expat Explorer Survey.

According to the survey, now in its 11th year, expatriates in Hong Kong also make the most amount of money in Asia-Pacific and the third worldwide. They earn an average salary of US$178,706 a year, US$72,000 more than the average expatriate globally. This only behind Switzerland at US$202,865 and the US at HK$185,119. Expatriates in mainland China, who ranked second in Asia-Pacific, earn an average of US$172,678 while in Singapore, which ranked third, they earn US$162,172.

The survey polled 22,318 expatriates in 163 markets worldwide in March and April this year. And while Hong Kong has featured in the top three for expatriate earnings in Asia-Pacific for the past three years, it has lost out to Singapore, which is considered the best place to live by expatriates. This is the fourth year in a row that Singapore has ranked top in terms of living conditions for expatriates.

The high salaries in Hong Kong come at a price, with 50% of expatriates saying they worked longer hours after moving here. About 28% of expatriates earned 50% more here than at home, ahead of Singapore where expatriates earned on average 27% more than at home.

Hong Kong's high salaries come at a price, with 50% of expatriates saying they work longer hours here

Every six in 10 expatriates in Hong Kong said they had more disposable income than they did before moving here. This was because they paid lower taxes here, while a quarter of the respondents said their employer covered some of their expenses, such as accommodation, schooling and cars.

About 72% of expatriates in Hong Kong said the city was a good place for expatriates who wanted to progress in their careers, the highest proportion across Asia-Pacific.

“With increased economic prospects across Asia-Pacific, more markets in the region are providing attractive opportunities and diverse experiences for expats. However, expat destinations like Hong Kong, Singapore and mainland China stand out as magnets for global talent as they strengthen their position as leading international commercial and financial centres with a promise of not only higher earnings, but long-term career growth,” said Mark Surgenor, head of wealth, Asia-Pacific at HSBC.

Singapore has ranked top in terms of living conditions for expatriates for the fourth year in a row

The higher incomes also mean these expatriates spent more, the survey found. “Expats in Hong Kong are taking more holidays (53%), spending more on their children’s education (30%) and buying more luxury items (22%). But many are also putting their money to more long-term uses in savings and investments,” he added.

Since moving to Hong Kong, 39% of expatriates said they had been able to save or invest to buy property somewhere in the world; 32% had been able to put away long-term savings or investments; and 26% said they had been able to save or invest for their children’s education.

About a third of the expatriates surveyed in Hong Kong were from the United Kingdom, 15% from mainland China, 12% from the US, 9% from Australia, and the rest from Canada, Germany and France.

More expatriates come to Hong Kong to work, with only 2% moving here for retirement. In contrast, 22% of expatriates moving to Malaysia went there for retirement.

About a quarter of expatriates in Hong Kong worked in financial services, 15% in education and 8% in accounting or consulting.

About 62% of expatriates in Hong Kong have been here for over five years and 41% for over 10 years. About 60% were male and 40% female.

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Business Tianjin 2018 October Issue

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