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EXPAT LIFE
127
June15
The New Expatriate
Research confirms the anecdotes: the times are changing
It’s often thought that an expat in Singapore is someone living on
a generous company package in an expansive black-and-white
home, with driver, gardener and nanny. This might have been case
in 1995, but the reality in 2015 is that more and more expats are
now employed on local contracts. What does this mean, and how
do they manage life in the world’s most expensive city? DR YVONNE
McNULTY from
Expat Research
takes an honest look at real life for
Singapore’s
new
expats who don’t receive the big packages, and
debunks the myth that all expats here are living it large.
T
wenty years ago, being an expat was seen as a quick way to get rich fast,
with most employees receiving full compensation and benefits packages
that covered everything from housing, schools, and cars, to tax equalisation,
home leave, and even cold-weather clothing allowances! While some expats are
still fortunate to be living on full packages, most of us don’t.
Industry research shows that “localising”
(see box, right)
expatriates has been the
dominant compensation approach in Singapore, Hong Kong and Shanghai since
2004, in contrast to the predominantly full-package approach of 20 years ago. This
change means that more expat families are relocating to Singapore, or remaining
Localisation
describes the
company practice of replacing
an expat compensation
package with something
comparable to that offered
to locals. It often includes
reducing base salary, and
a lmos t a l way s i nvo l ves
e l i m i na t i ng i n c en t i ve s ,
allowances, home country
social security and retirement
plans. Localised expats are
viewed and treated like local
employees and offered few
or no special benefits in
recognition of their “special”
status as foreigners.