Manila remains one of the world's cheapest cities for the rich, despite its booming economy and more expensive whisky here, according to Swiss wealth manager Julius Baer.
Julius Baer's Global Wealth and Lifestyle Report 2024 showed Manila ranking ninth among 10 Asia-Pacific cities after Singapore, Hong Kong, Shanghai, Sydney, Taipei, Jakarta, Bangkok and Mumbai—only faring better than Tokyo, which is now the cheapest city in the region among the affluent.
The higher a city's ranking on the report, the more expensive it is to buy luxury goods there.
Globally, Manila ranked 21st among the only 25 cities covered by the report, a notch lower than last year's and back to its 2022 position.
Julius Baer Asia-Pacific research head Mark Matthews said that while China and India lead the charge as global economic powerhouses in the region, Southeast Asian emerging markets like the Philippines, Malaysia, Thailand and Vietnam have also been "experiencing remarkable growth and transitioning into middle-income status, showcasing the region's diverse and resilient economic tapestry."
In Manila, where the Philippine peso is trading at 19-month lows against the strong US dollar, whisky has turned costly and second most expensive in the world, as Julius Baer noted that this liquor's pricing is sensitive to currency fluctuations.
"In US dollars, it [the price of whisky] has fallen by one percent, but the sharp rise in some cities, such as Jakarta, Manila, Mumbai, and Vancouver is down to a host of factors: Brexit-related problems, supply chain issues and skyrocketing global demand for a product, where, at the higher end, supply is fairly constrained," Julius Baer said.
Julius Baer's advice to whisky lovers in Manila and elsewhere where it would cost to drink more: "If you have ever thought about switching to rum, now is the time."
Across the 25 cities, it is second least expensive to buy fancy ladies shoes in Manila, while degustation dinners, health costs, watches, residential properties, treadmills, hotel suites, and quality private school education are among the cheapest in the world.
On the flipside, the most expensive luxury items and services in Manila compared to the rest of the globe include whisky, lasik, sports cars, business class flights, as well as champagne.
According to Julius Baer, whisky incurred the biggest inflation rates in Manila— 49.8 percent year-on-year price hikes in Philippine peso value or a 49.9 percent increase in US dollar terms; while the largest deflation or annual decline in prices was felt by buyers of luxury cars, which can be bought cheaper by 23 percent in peso terms or marked down by 24.2 percent when purchased using US dollars.
To recall, in Julius Baer's 2022 report, the wealth manager had attributed Manila's drop from 16th place in 2021 to "problems ranging from corruption to extreme weather events [which] mean its progress has been slower than its neighbors, and recent political changes raise the specter of the economic troubles of the 1980s."
Julius Baer had not specified, but it may have been referring to the debt crisis during the waning years of dictator Ferdinand Marcos, whose son Ferdinand Marcos Jr. became President in 2022.
While Manila is cheap, some of its neighboring cities in the region remained with very high costs of living, even for those with deep pockets.
"Singapore is named in our report as the world's most expensive city to live well for the second year in a row, followed by Hong Kong in second place," Julius Baer said.
"Despite these high rankings, Asia is no longer the most costly region in which to live well, after four years at the top of our list. EMEA (Europe, Middle East, and Africa) becomes the most expensive region to live well, with European cities in particular moving up the ranks," Julius Baer added.
In Asia, Julius Baer partly blamed currency fluctuations for the "weaker" performance of principal Asian cities.
"A weakening yen has forced down prices in Tokyo, for example. In April it dwindled to just 160 against the dollar following two years of steady decline -- the first time it has dipped to this level since 1990," Julius Baer noted.