EXPATRIATES in key Asian cities, including Singapore, are feeling the squeeze from the weak US dollar, which has pushed up their daily living expenses, a survey showed yesterday.

Singapore's rise in the ranking to become one of the top 10 most expensive Asian locations surveyed this year is largely a result of the strength of its currency.

Moving from 12th to ninth in the Asian ranking over the past 12 months and from 97th to 78th worldwide, Singapore has risen above Taipei, as well as Shenzhen and Guangzhou.

From grocery shopping to restaurant meals, expatriates have seen their purchasing power shrink as the greenback continues to slide, human-resources consultancy ECA International said in its twice-yearly cost-of-living report.

The report found that foreigners living in Japan were the hardest hit in Asia, given the current strength of the yen.

"A lot of locations whose currencies are not pegged against the US dollar...have risen in our (cost) rankings over the course of the last 12 months," said Mr Lee Quane, ECA International's regional director based in Hong Kong.

Those who have moved to places such as Japan, Singapore, Indonesia and South Korea will require higher cost-of-living allowances in order to maintain the same purchasing power they had last year, he told Agence France-Presse.

"Japan remains the most expensive location in Asia, largely because of the strength of the yen," said Mr Lee. The dollar recently hit 14-year lows against the Japanese unit.

ECA International's survey measures the cost of a basket of 125 items purchased by expats in over 390 locations globally.

The costs of the items, including groceries, clothing and miscellaneous purchases, are converted into US dollars to make a standard comparison.

They do not include housing, car and schooling expenses.

The four costliest Asian cities were all in Japan - with Tokyo most expensive, Yokohama ranked second, followed by Nagoya and Kobe.

Hong Kong placed fifth in Asia followed by Shanghai, with Seoul, Beijing, Singapore and Taipei rounding up ECA International's top 10 costliest locations in the region this year.

On a global scale, Hong Kong's currency peg to the US dollar meant expat living costs decreased, with the Chinese territory's position on ECA International's global ranking tumbling to 51st this year, from 33rd in last year.

A year ago, living costs in Singapore were approximately 15 per cent lower than in Hong Kong; now the difference is just 7 per cent.

"While such increases are unlikely to deter companies from relocating staff to Singapore, the cost of doing so is now higher than it was a year ago," said Mr Lee in a press statement.

Korean locations have moved up the rankings, as the won regained some of its value since tumbling late last year. Likewise, the strengthening of the rupiah has pushed Indonesian locations up the ranking.

Shanghai is China's most costly location for assignees, followed by Beijing. Xi'an, the cheapest city surveyed in greater China, is ranked 115 places below Shanghai in the world ranking.

Karachi is the cheapest location in Asia, and the survey, followed by Islamabad and Kolkata.

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