Four out of five expats saw an increase in their disposable income since relocating to Singapore, according to a survey from HSBC.

Around half (44 per cent) reported an increase of a half or more in their disposable income, compared to the global average of just under a fifth (19 per cent), said HSBC's fifth annual Expat Explorer Survey. In terms of family wealth, almost three-quarters (74 per cent) of expats in Singapore witnessed an improvement in the financial status of their household.

This trend for increased earnings is mirrored across other Asian countries, with expats in Hong Kong (79 per cent), Malaysia (72 per cent) and China (69 per cent) also benefitting from an increase in disposable income since moving to the country, said the HSBC survey.

Quality of life

Singapore scores well as a desirable place to live among expats, achieving fourth position in the ‘Expat Explorer Experience’ league table and second in Asia after Thailand (ranked second in the world). The majority of expats in Singapore (76 per cent) are experiencing a better quality of life since relocation, close to half (48 per cent) are enjoying higher standards of accommodation, more than half (57 per cent) are commuting with greater ease and 43 per cent are having a more active social life.

However, expats in Singapore are facing some challenges in integrating. Only 19 per cent here strongly agree that they have integrated well with the local community, 41 per cent strongly agree that they tend to socialise with other expats rather than locals, and only 15 per cent strongly agree that they try to learn the local language. Notwithstanding this, Singapore climbed seven places from 11th last year to fourth this year in this lifestyle indicator which examines expat quality of life including ease of setting up and integration, leisure and healthcare, how expats keep in touch with friends and family, and their plans for retirement.

Singapore is also child-friendly in the eyes of its expats, with 91 per cent saying that their children’s safety had improved since relocating. Costs, however, appear to be a concern where 83 per cent said they are spending more on education for their children here, and 83 per cent said they are paying more for childcare.

Paul Arrowsmith, head of retail banking & wealth management at HSBC Singapore said: “While Southeast Asia has historically been a popular career destination, we are now also seeing expat wealth heading towards to this region. Singapore, especially, is fast becoming an all-round expat destination for career progression, financial rewards and quality of life.”

“As more expatriate professionals are exploring investment solutions to ride out periods of uncertainty and weather the storm, the insights from the survey will help us provide more relevant and tailored wealth advisory to these individuals as they look to grow and protect their wealth,” he added.

Migration from Middle East

Southeast Asia has come to the fore as a leading destination for expat earning potential in spite of wider global turmoil, with Asian countries dominating the ‘Expat Explorer Economics’ league table this year, said HSBC. Five countries in the region made it to the top ten ranking, namely, Singapore (first), Thailand (third), Hong Kong (fourth), China (seventh) and Vietnam (tenth). While the Middle East has reigned in previous years as the region of choice for expats seeking wealth, Asia is now beginning to take the expat wealth crown, said the survey.

Career-aspiring expats

The survey also found that Singapore attracts high-flying, ambitious expats with strong career aspirations and who are internationally mobile. A large proportion of expats in Singapore moved here for financial rewards (72 per cent) and better job prospects (70 per cent), with 74 per cent willing to consider moving to another expat posting after this one. One in ten of those surveyed (11 per cent) indicated either Australia or Hong Kong to be their next expat location of choice. Singapore’s proximity to other key Asian financial markets and its location along major flight paths to international destinations has given it additional premium as an attractive expat destination.

Investing away from cash

Expats in Singapore are increasingly using multiple vehicles when investing their money. Those earning US$200,000 to US$250,000 per annum have moved over time from a higher proportion of cash investments to a relatively even mix of cash, real estate and equities, producing a balanced investment portfolio. Singapore-based expats are holding less in cash (nine per cent drop from 37 per cent upon relocation to 28 per cent now); more in equities (five per cent rise from 14 per cent upon relocation to 19 per cent now); and more in real estate (two per cent up from 23 per cent upon relocation to 25 per cent now). Expats have come to realise, given wider economic uncertainties, the advantage of diversification over a spread of different asset classes to hedge against volatility.

HSBC Expat’s Expat Explorer surveyed 5,339 expats from nearly 100 countries worldwide.