Times are hard and the economy is trudging along to 2.5 percent growth.

Feeling the pinch are expatriates in Singapore.

According to a June 29, 2017 article in Singapore Business Review, expat packages are on a downward spiral.

But that is not stopping some of these highly-paid foreigners from coming here where the grass is somehow still greener than surrounding pastures, worsening conditions notwithstanding.

Singapore is attractive relative to other Asian countries

Expat packages in Singapore fell 6 percent in 2017 to S$316,600 per annum, inclusive of salary, tax, and benefits.

In Hong Kong, it declined 2 percent to S$356,800 per annum -- comparatively higher than Singapore.

But it is the conversion from Sing dollar to US dollar that accounts for part of the fall, with the USD strengthening against the Sing dollar.

Rental rates in areas that cater to expats have also fallen in Singapore and this fall will be reflected in the overall package.

However, expat salaries in Singapore are still high on average.

No need to pay premium for expats

How high?

One expat interviewed in the article gave an indication of expectations: He said a fair salary to live comfortably is S$7,000 a month.

This is to cope with Singapore's high cost of living -- and perhaps to also live it up a little.

Cost of living in Singapore is reckoned to be twice as high as Taipei, Taiwan, but this is balanced out by access to cheap food and convenient public transportation options here.

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Falling expat packages a sign of stronger supply than demand?

But the fluctuating remuneration rates could also be seen as a sign of Singapore's strengthening position.

One 28-year-old broadcast engineer quoted in the piece, who hails from the United Kingdom and who used to earn S$96,000 a year back home, is settling for a S$4,000 a month salary in Singapore working as a project manager in an audio-visual firm.

SBR wrote:

"I have a three-bedroom house in the UK with a big garden front and back and I rent it out for approx. $1,000 dollars a month. Here in Singapore, you can barely get a bedroom in a shared apartment for that kind of price," he recalled.

This implies Singapore can scrimp on remuneration and there is no need to pay premium to attract foreigners, as non-monetary benefits here are attractive in their own right.

Drawn here by low tax rates and a safe and English-speaking environment, expats are also known to fork out and cover expenses just for the opportunity to work in Singapore, as it is an attractive location in Asia that provides employees with regional experience.

Employment pass holders (Professional, Managerial and Executive), who get remuneration of above S$3,000 monthly, make up slightly more than one-tenth of the 1.3 million foreigners working in Singapore today.

And as long as expats can still ration less than one-third of their salary to paying for rent in Singapore, they will keep coming in droves.

Top photo via Pixabay