TAIPEI (TVBS News) — Axios has introduced the "Soup Dumpling Index" (小籠包指數), a new economic measure comparing the purchasing power of US$10 across cities worldwide. In Kuala Lumpur, consumers can buy the most soup dumplings at 16.6, while in London, the same amount only gets 4.3 dumplings. In Taipei, US$10 buys 15.7 dumplings, highlighting regional differences in costs.
The index, modeled after The Economist's Big Mac Index, uses purchasing power parity to gauge local prices. Only Kuala Lumpur, Taipei, and Beijing allow consumers to buy more than 10 soup dumplings for US$10, whereas other cities fall short of this benchmark.
In Malaysia and Taiwan, soup dumplings cost about 66% less than in the United States. Similarly, the Big Mac Index shows Big Macs in these countries are nearly 60% cheaper than in the U.S.
Chung-Hua Institution for Economic Research (CIER, 中經院) Vice President Wang Jiann-chyuan (王健全) stated, "From the Big Mac Index, the Malaysian Ringgit and the New Taiwan dollar, in fact, are cheaper than London by about 57%." This means that, compared with the British pound and the U.S. dollar, the New Taiwan dollar and the Ringgit indicate relatively strong purchasing power.
Cathay United Bank lead economist Lin Chi-chao (林啟超) emphasized that price differences can't be attributed solely to exchange rates. He pointed out that these disparities also reflect factors such as rent and labor costs.
Sun Ming-te (孫明德), director of the Economic Forecasting Center at the Taiwan Institute of Economic Research (TIER, 台經院), suggested that Malaysia's lower labor costs and living expenses, especially in housing and rent, contribute to its competitive pricing.
Both the Soup Dumpling Index and the Big Mac Index offer valuable insights into global economic disparities and consumer purchasing power.