BROADER REPERCUSSIONS ON THE ECONOMY
Super commuters also have to consider the issue of taxes, as they could qualify as tax residents in more than one country.
Ms Eugenia Tay, a partner at KPMG in Singapore who specialises in personal tax and global mobility services, said: “Individuals may overlook that income is often taxed where the work is physically performed, beyond their country of residence or pay.
“This varies by country and can catch commuters off-guard. Without proper planning, these individuals may face higher tax costs, increased compliance complexity, and reduced access to tax reliefs or benefits in either jurisdiction.”
She added that they may be required to file multiple tax returns in the country of work and the country of residence to meet the rules, deadlines and paperwork requirements of each country.
These complications extend to manpower laws, which can affect the employers of super commuters, noted Ms Karen Ng, who is the regional head of expansion at human resources company Deel.
“Without a unified system, human resource teams often face fragmented oversight and legal risk when hiring remote employees or managing working arrangements like super commuting,” said Ms Ng.
Hence, she highlighted the growing need for businesses to adopt flexible, compliant solutions to manage a globally distributed workforce.
Global employer services leader Sabrina Sia from Deloitte Southeast Asia added that it would be prudent for Singapore employers to seek advice to review any super commuting or remote work arrangements to ensure that they are fully aware of the tax risks and reporting requirements before agreeing for their employees to undertake such arrangements.
On the flip side, SMU’s Prof Liu said that super commuting generally produces positive effects on the local economies of neighbouring countries where these commuters reside.
“By earning income in a strong foreign currency, super commuters channel purchasing power into local consumption and help support the livelihoods of local families, who often depend on the financial resources they provide.”
But in Singapore, this might affect the amount of Goods and Services Tax (GST) that the Singapore government is able to collect from super commuters, said Deloitte’s indirect tax leader Richard Mackender.
“If the trend of super commuting were to become so widespread that there is a noticeable reduction in GST receipts overall, the Singapore government has other options it could consider to make up the revenue.
“(This includes) higher passenger taxes on flights or increased entry fees at the land checkpoints,” added Mr Mackender.
So, in the end, she said that although the tax “mix” might change, the tax system could be managed so that the total tax receipts remain the same.
On top of these issues, with Singaporeans moving abroad, might this lead to a “brain drain” as talent leaves to be based elsewhere?
Mr Song, the economist, felt that this is not a problem because it “works the other way” too: When overseas Singaporeans share the country’s culture with people abroad, it also attracts talent from those countries to work here.
“Even with people leaving, our population is still growing. So in that sense, Singapore is constantly undergoing that change, the internationalisation,” he said.
NAVIGATING LIFE ABROAD
Even as the super commuters who spoke to CNA TODAY said they have no regrets about adopting this lifestyle, they admitted that adjusting to a different environment can be tricky, especially when the living standards in their new home might not match up to those in Singapore.
Mr Tan Quee Peng, the managing director of an architectural firm, spends a quarter of his time in Singapore and the rest in Vietnam. His company is headquartered in Singapore but has offices in Hanoi and Ho Chi Minh, which he leads.
“Here (in Vietnam), I get blackouts on the streets – suddenly there’s a power overload and it’s complete darkness, because infrastructurally, it’s a developing country,” he said.
“There’s a lot for the country to catch up with to increase power, have better quality road connections, and drains.”
Mr Yeo agreed, saying that it is common to see potholes in Thailand – a rarity in Singapore, which has well-maintained public amenities. But that is a trade-off that he is willing to accept.
Unfamiliarity with local cultures might bring about unexpected inconveniences, but also surprising encounters. That was the case for Mr Shen, the lawyer in Jakarta.
When he had just moved to Indonesia, he did not know about Lebaran, the Indonesian name for the Muslim holiday known as Hari Raya Aidilfitri in Singapore and Malaysia.
He also did not realise that unlike in Singapore, where the public holiday for Hari Raya is a single day, Indonesians mark Lebaran with a two-week public holiday.
“What I hadn’t realised was that the entire country shuts down for two weeks and nothing happens. Everybody who works in Jakarta goes home to spend time with their family, and I was stuck in Jakarta,” he said.
By the time he realised it, it was too late for him to make any holiday plans because all the flights leaving Indonesia were full. But a client unexpectedly called him and invited him to stay with her family at a villa in Bali at the last minute.
He said: “I stayed, and met many of their wonderful friends passing through. Some of my closest friends today in Indonesia are people I met during that stay, and that was a complete eye opener and taught me how warm and hospitable Indonesians are.”
On the flip side, super commuters told CNA TODAY that they feel frustrated when their family members have misconceptions about the country they are staying in.
Mr Ho recalled: “During Chinese New Year, I get questions like ‘Are you scared of getting kidnapped and shipped to Myanmar?’ But we’re talking about central Bangkok! We’re not talking about the outskirts of Thailand.”
Mr Sng said that some family members think that because he is overseas, he is “playing” all the time and touring different places. But in fact, he spends most of his time working and returning home once his work is finished.
