China has been losing foreign investment and expat talent since 2020 when the country imposed strict lockdowns and border closures which are still ongoing in 2022. Meanwhile, in the last two years, other Asian destinations have proved themselves to offer excellent conditions for expats: Malaysia, Indonesia, Vietnam, Thailand, Taiwan, the Indian city of Bangalore and, to a lesser extent, Singapore.
Is the ‘Golden Age' of expatriation in China over?
Expats in China are being driven away by the strict and unpredictable measures of the government to curb Covid, as well as by other political moves like the crackdown on the TESOL (Teaching English to speakers of other languages) industry, which is largely staffed by expats.
As of late 2022, China is the only remaining country in the world to maintain a quasi-total border closure because of Covid. Permanent residents and select students (from a few countries or with specific scholarships) can enter China, but most other foreigners are still barred. Even those who can enter still need to undergo quarantine – 7 days in a government-designated facility and 3 days at home.
The government hasn't released a clear timeline for the easing of restrictions, and what's more, they've often abruptly re-imposed city-wide lockdowns when a new Covid variant appeared or a small cluster of cases was detected. While these measures have protected the local population's health, it has affected the economy and the country's reputation as a cosmopolitan economy and expat hotspot.
A report by the Asian Development Bank (ADB) shows that, for the first time in 30 years (i.e., since China entered the global market economy), the country is experiencing slower economic growth than other Asian countries. The exodus of foreign workers and companies is accompanied by a loss of foreign investment. Indeed, China's regional market share of greenfield foreign investment has gone down by half since the pandemic – from 50% in 2019 to 26% in 2022.
While there is no data about the specific number of expats who have left China since 2020, other statistics and testimonies point to a clear exodus. In March 2022, 48% of the respondents of a survey conducted by That's Shanghai magazine said that they're planning to leave the country in the next year. A study by the American Chamber of Commerce, also from March, revealed that 80% of companies were struggling to retain their foreign staff or attract new foreign talent. With closed borders, no new expats are replacing those who are leaving.
Many of the expats who left used to work in the education sector. Indeed, when Rachel Weiss, an American media specialist based in China, conducted a survey for her blog ‘Rachel Meets China,' she found that out of 350 expats who were leaving or had recently left China, 61% had worked in education. The second leading sector they worked in is business and technology – 17%. In late November, the Chinese government banned the private tutoring industry in order to curb capitalist competition and reduce the pressure put on children. Many English teachers from abroad found themselves forced to change careers or simply leave the country.
Asian countries with expat-friendly conditions
While China's current situation is deeply unfavorable for expats, some of its neighbors offer more attractive conditions. Malaysia, Taiwan, Vietnam and Thailand provide an affordable cost of living (especially at a time of global inflation!), a friendly environment and great ease of settling in. Malaysia and Taiwan also have excellent quality of life. Meanwhile, Bangalore in South India is a favorite among tech workers, and Singapore, even if it has an exorbitant cost of living and stressful work culture, remains quite popular as an Asian destination for the wealthy.
The Malaysian capital of Kuala Lumpur was named by Bloomberg as the best expat city of 2022. Malaysia has a welcoming local population with high English proficiency. The cost of living there is very affordable: a comfortable apartment in the capital costs between 400 and 800 USD per month, and oil and gas are always on the cheap side (despite the Ukraine crisis!) because the country has its own energy industry, and for less than 5 USD, you can find delicious and culturally diverse food at every street corner. For example, the classic Nasi Lemak, coconut-infused rice cooked in pandan leaf, costs only 0.30 USD per portion! As for having a career there, even if Malaysia doesn't offer the most reliable internet connectivity or great promotion opportunities, it compensates by having excellent work-life balance.
Its neighbor, Singapore, meanwhile, remains an attractive choice for highly-paid expats in fields like finance and specialized medicine. In September, the country introduced a new five-year visa, the ONE Pass visa, for expats earning at least 21,400 USD a month. It has multiple benefits: the expat can operate or work for multiple companies at the same time, and they can renew this visa an unlimited number of times. On the downside, Singapore is notorious for its poor work-life balance. Over 90% of expats in top positions there have experienced burnout, reports the American insurance firm Cigna, because of excessive workloads accompanied by stress about the cost of living. The cheapest one-bedroom apartments there, for example, start from 700 USD per month.
As for Taiwan, it is found by expats to be extremely safe. It also boasts of affordable and high-quality healthcare, a decent cost of living that goes hand-in-hand with satisfying salaries, excellent infrastructure and transport, and friendly locals. Safety and reliable transport makes it easy to enjoy the great leisure activities in Taiwan: hiking trails in lush tropical mountains, lively nightclubs, bookshops and concert halls. The country is also one of the best in the world, not only Asia, when it comes to internet connectivity, and has progressive laws. It is notably the only Asian country that has legalized same-sex marriage. On the downside, expats say that Taiwanese workplaces tend to lack creativity and flexibility – they are hierarchical, highly bureaucratic, and might not always accept work-from-home or remote working requests.
Turning our gaze back to Southeast Asia, Thailand, Vietnam and Indonesia are all very affordable to live in, especially if you earn in a foreign currency. One US dollar is worth about 38 Thai bahts, 23,865 Vietnamese bongs and 15,303 Indonesian rupiahs. International Living Magazine estimates that things in Vietnam cost 5-25% less than in neighboring countries. In big cities like Hanoi and Ho Chi Minh, 500 USD per month is enough to pay for all basic necessities – housing, food, utilities and transport. That is the same in Indonesia. With more money, you can enjoy a luxurious life, like getting a house with a pool and eating out at 5-star restaurants. Meanwhile, in Thailand, it's best to have a monthly budget of 1500 USD to live comfortably, as advised by the finance company Smart Asset.
These three countries have great culinary variety and, given the importance of tourism there, great leisure options – shopping, guided tours, aquatic sports, cruises, heritage sites, etc. However, on the downside, the quality of life can be low. In Vietnam, language barriers, poor healthcare and transport systems, and inefficient bureaucracy can be a source of frustration for expats. Air and noise pollution is also worrisome, according to expats. Thailand has the same cumbersome administrative and pollution problems, in addition to having a work culture that stifles creativity and offers few opportunities. In that regard, Thailand might be a better place to retire in than to have a career.
As for Indonesia, it also has challenging local bureaucracy on top of transport issues (e.g., poor car infrastructure, lack of safety on bikes) and limited access to healthcare.
If Thailand presents challenges for having a flourishing career, in another part of Asia, the Indian city of Bangalore is perfect for career-driven expats, especially those in the technology sector. While the city still suffers from poor infrastructure, it also has a booming startup sector and a mushrooming number of hip cafés and art galleries. Many expats find Bangalore to have better work-life balance and cost of living than other tech hubs like Silicon Valley. They also find that Bangalore's relative “youth” in the tech world gives it a fresher and more dynamic environment.
On the financial side of things, exactly like in Southeast Asia, the low value of the Indian rupee puts most expats at a financial advantage in Bangalore. For instance, renting a three-bedroom apartment right in the city center costs around Rs 35,000. While that is a middle-class salary in India, when converted into US dollars, it's a mere $450.
All the Asian destinations described above each have their perks and disadvantages for expat life, but one thing unites them: they have open borders, there are daily flights in and out of their international airports, and they don't have Covid quarantines anymore. As China keeps its strict Covid policies for an indefinite amount of time, these other countries of the continent are benefiting from being open to foreigners.
