Singapore Becomes World's Most Expensive City to Live In
Singapore Becomes World's Most Expensive City to Live InREUTERS

Singapore has become the most expensive city in the world to live in following a rise in house prices after an influx of foreign workers boosted the island's wealth and demand for homes.

According to the Economist Intelligence Unit report, entitled The Worldwide Cost of Living Survey, a strengthening of the Singaporean dollar also pushed the country to poll position as the expansion of the republic's financial industry contributed to the country's wealth.

"Singapore's rise is partially attributable to the continued strength of the Singapore dollar, but the city has seen price rises too which have no doubt been compounded by a reliance on imports," said Jon Copestake, editor of EIU report.

Singapore surged in the survey by rising by five positions, beating Paris, Oslo, Zurich, Sydney, and Tokyo.

Singapore has one of the lowest unemployment rates in the world with jobless levels at a five-year low at 1.8% for the last quarter.

Singapore's wealthiest workers pay the top tax rate of 20% on personal income.

Singapore's senior executives are the highest-paid in Asia, earning between 19 and 30% more than their counterparts in Hong Kong.

According to Tower Watson's Asia Pacific unit, the pay gap between the two main financial powerhouses in Asia continues to widen as it becomes more expensive to live in Singapore.

"Singapore is going to be more expensive to live in," Sambhav Rakyan last month.

"You need to compensate for the higher cost of living in the particular country. The implications are also in terms of the tax rate."