Singapore- A Hot Location For MNCs

22 Dec 2010

Many Multinational corporations (MNCs) are looking forward to stepping up staff deployment areas. According to ECA International, MNCs are moving to reverse a cut-back in the number of international assignments after the bounce back of global economy

Lee Quane, ECA's regional director – Asia, over half - 54.3 per cent - of the human resource consultancy firm's clients polled this year indicated they planned to post more HQ staff overseas, up from 39.9 per cent in the depth of the global downturn in early 2009.

According to London-based ECA, The republic is No 2 on the MNCs' priority list for expatriate postings in Asia, which accounts for half of their top 10 global list. Currently, China has the hottest market and tops the Asian list which also includes Hong Kong (No 3), India (No 4) and Vietnam (No 5).

As per the ECA poll, Singapore is at No 4 in the MNCs' global list of locations for expatriate staff and No.3 on the Asia-based MNC’s top 10 list of locations for expatriate staff.

The United States remains the world's biggest market despite its current economic sluggishness, takes precedence over all countries when it comes to overseas staff deployment by MNCs.

China is the No 1 location, but Mr Quane said others in the region are also rising as attractive markets for Asian-based companies to have a direct presence.

Singapore's attractiveness appears to be undiminished by ECA's earlier cost-of-living survey findings, which showed the republic has become a more expensive place for foreign postings.

Rising prices and the strengthening of the Singapore dollar against major currencies propelled Singapore in the cost of living stakes from 79th position globally to 42nd over the past year.

Mr Quane said MNCs would not make an overseas posting based just on cost alone; they also consider other factors such as taxes and incentives and law and order.