View Full Version : More businesses will move out from here.
More people including accountant, engineers, managers will lose their jobs.
All industries or businesses is related to one another.
See this: http://sg.finance.yahoo.com/news/singapore-darwinian-budget-sparks-employer-020540629.html
But i believe PAP will do a good job in balancing it. If WP sure gone case.
So please don't complain. More complain it will be worse.
Some times you got to get bitten to learn. Be careful what u wish. I guess the noisy people got their wish but will continue making noise. Nothing gov they will be happy one. The noisest is small in number but damn loud...
Since u start this partisan thread, I come in to say well done PAP for losing Ponggol East by-election, hahahaha!
More people including accountant, engineers, managers will lose their jobs.
All industries or businesses is related to one another.
See this: http://sg.finance.yahoo.com/news/singapore-darwinian-budget-sparks-employer-020540629.html
But i believe PAP will do a good job in balancing it. If WP sure gone case.
So please don't complain. More complain it will be worse.
For the sake of our people and our country, we pray for Wisdom for our leaders in handling and governing well in this Volatile world :)
proud owner
26-02-13, 11:42
More people including accountant, engineers, managers will lose their jobs.
All industries or businesses is related to one another.
See this: http://sg.finance.yahoo.com/news/singapore-darwinian-budget-sparks-employer-020540629.html
But i believe PAP will do a good job in balancing it. If WP sure gone case.
So please don't complain. More complain it will be worse.
why do you have too add the last bit ?
cant help but feel you are deliberately trying to turn this prop forum into a political one
Pai Seh posted in wrong thread
Singapore has been relying on cost advantage since the 70s' to achieve competitive advantage in its economic model. In the 90s', Singapore maintained its cost advantage with foreign labours mainly in the manufacturing and consturction industry. In 2000s', with the plan to develop the IRs, more cheap and skill labours were imported. From an economic perspective, it is much easier to achieve growth through cost advantage through cheap labour than productivity. The goernment chose the easier path to grow the economy through cheaper imported labour.
As a developed country, Singapore is lacking all other developed economies in term of productivity. The reason was obvious since we have chosen the easier path.
If we look at Budget 2013 in a wider perspective; the government is basically pushing Singapore through the productivity path that of most developed economies. Such restructuring means that companies that refuse to pursue the productivity path or unable to cope with less cheap labour should move elsewhere. We are in transition and the process is going to be painful for some industries and companies which may have to relocate or shut down.
The PAP government is only responsing to economic reality knowing that the days of easy growth through cheap labour to achieve competitive advantage is over us.
What we are witnessing now at the social front where the people are unhappy with the influx of foreigners and cheap labour are just the result of the government's decision to rely on cheap labour rather than pursue the prouctivity path in our earlier years.
Perhaps, the PAP government might not take such a hasty decision now if there was no public outcry. However, we will still need to pursue the productivity path just like all other developed economies did.
Perhaps, it is a blessing that the government is taking action now than later when we have full employment. Imagine if we have to take the decision years later when we experience unemployment and a zero growth environment. We may be worst off than we are now.
thanks Leeds, very happy to read your analysis. and a very neutral, non-partisan one too. indeed, growth driven by cheap input is just a vicious cycle which requires more and more cheap input to achieve the desired outcome. painful pill to swallow now, but it should reap long term benefits. indeed, PAP is still non-populist. i just wish they can brush up their marketing.
Singapore has been relying on cost advantage since the 70s' to achieve competitive advantage in its economic model. In the 90s', Singapore maintained its cost advantage with foreign labours mainly in the manufacturing and consturction industry. In 2000s', with the plan to develop the IRs, more cheap and skill labours were imported. From an economic perspective, it is much easier to achieve growth through cost advantage through cheap labour than productivity. The goernment chose the easier path to grow the economy through cheaper imported labour.
As a developed country, Singapore is lacking all other developed economies in term of productivity. The reason was obvious since we have chosen the easier path.
If we look at Budget 2013 in a wider perspective; the government is basically pushing Singapore through the productivity path that of most developed economies. Such restructuring means that companies that refuse to pursue the productivity path or unable to cope with less cheap labour should move elsewhere. We are in transition and the process is going to be painful for some industries and companies which may have to relocate or shut down.
The PAP government is only responsing to economic reality knowing that the days of easy growth through cheap labour to achieve competitive advantage is over us.
What we are witnessing now at the social front where the people are unhappy with the influx of foreigners and cheap labour are just the result of the government's decision to rely on cheap labour rather than pursue the prouctivity path in our earlier years.
Perhaps, the PAP government might not take such a hasty decision now if there was no public outcry. However, we will still need to pursue the productivity path just like all other developed economies did.
Perhaps, it is a blessing that the government is taking action now than later when we have full employment. Imagine if we have to take the decision years later when we experience unemployment and a zero growth environment. We may be worst off than we are now.
We're are heading into what I call "a country club nation". Country club doesn't produce anything, but that is where big money circulate.
Some times you got to get bitten to learn. Be careful what u wish. I guess the noisy people got their wish but will continue making noise. Nothing gov they will be happy one. The noisest is small in number but damn loud...
people donno what they are wishing for. Like I say they wish for cheap cheap yet dont want to see foreigners. Either way it wont be cheap.
So just go make do improve skill set. etc. want cheap want high pay want easy? where to find?
Singapore has been relying on cost advantage since the 70s' to achieve competitive advantage in its economic model. In the 90s', Singapore maintained its cost advantage with foreign labours mainly in the manufacturing and consturction industry. In 2000s', with the plan to develop the IRs, more cheap and skill labours were imported. From an economic perspective, it is much easier to achieve growth through cost advantage through cheap labour than productivity. The goernment chose the easier path to grow the economy through cheaper imported labour.
As a developed country, Singapore is lacking all other developed economies in term of productivity. The reason was obvious since we have chosen the easier path.
If we look at Budget 2013 in a wider perspective; the government is basically pushing Singapore through the productivity path that of most developed economies. Such restructuring means that companies that refuse to pursue the productivity path or unable to cope with less cheap labour should move elsewhere. We are in transition and the process is going to be painful for some industries and companies which may have to relocate or shut down.
The PAP government is only responsing to economic reality knowing that the days of easy growth through cheap labour to achieve competitive advantage is over us.
What we are witnessing now at the social front where the people are unhappy with the influx of foreigners and cheap labour are just the result of the government's decision to rely on cheap labour rather than pursue the prouctivity path in our earlier years.
Perhaps, the PAP government might not take such a hasty decision now if there was no public outcry. However, we will still need to pursue the productivity path just like all other developed economies did.
Perhaps, it is a blessing that the government is taking action now than later when we have full employment. Imagine if we have to take the decision years later when we experience unemployment and a zero growth environment. We may be worst off than we are now.
agree to but people have to realistic. it wont be cheap or return to 90s cost structure.
We're are heading into what I call "a country club nation". Country club doesn't produce anything, but that is where big money circulate.
The PAP government still firmly believe in maintaining a high value manufacturing base in Singapore because it also drives other industries. When Mr Tan Jee Say in 2011 presented his alternative economic model for Singapore during the 2011 GE, his idea of turning Singapore into a 100% service economy was totally rejected by the ruling party.
How long can Singapore maintian its competitive advantage in manufacturing is what matter a lot to the government and its economic policy. Tourism and the Finance sectors are ther other two pillars that attract foreign currency. Singapore will have to continue to improve its infrastructures to spur domestic growth since we have a very small domestic market.
We are not relying on 'country club' attributes to survive our economy. It just appears to be so.
The PAP government still firmly believe in maintaining a high value manufacturing base in Singapore because it also drives other industries. When Mr Tan Jee Say in 2011 presented his alternative economic model for Singapore during the 2011 GE, his idea of turning Singapore into a 100% service economy was totally rejected by the ruling party.
How long can Singapore maintian its competitive advantage in manufacturing is what matter a lot to the government and its economic policy. Tourism and the Finance sectors are ther other two pillars that attract foreign currency. Singapore will have to continue to improve its infrastructures to spur domestic growth since we have a very small domestic market.
We are not relying on 'country club' attributes to survive our economy. It just appears to be so.
Sg is a two speed economy, however the slower speed economy (ie. Manufacturing) is increasingly being subsidised by the high speed economy (service). It will be more efficient to entirely eliminate manufacturing sectors here, but that would create unemployment. Increasingly manufacturing exist as a form of social welfare.
Sg is a two speed economy, however the slower speed economy (ie. Manufacturing) is increasingly being subsidised by the high speed economy (service). It will be more efficient to entirely eliminate manufacturing sectors here, but that would create unemployment. Increasingly manufacturing exist as a form of social welfare.
I would say which contribute more toward our GDP, bearing in mind that manufacturing will drive other industries such as logistics and transport, engineering & construction, plant and operation etc.
It would be more sustainable to be a Switzerland than Hawaii or Las Vegas. Hawaii and Las Vegas will survive economically because they are both cities within a big country.
the fact of the matter is when we take in less foreign workers, cost of doing biz will increase. on 1 hand, we will have less people to content with, on the other hand, inflation will rise.
the key is to be self sufficient so the impact will be minimal.
I would say which contribute more toward our GDP, bearing in mind that manufacturing will drive other industries such as logistics and transport, engineering & construction, plant and operation etc.
It would be more sustainable to be a Switzerland than Hawaii or Las Vegas. Hawaii and Las Vegas will survive economically because they are both cities within a big country.
Unfortunately sg don't have the space nor enough people to run a world class manufacturing. Switzerland only manufacture watches. They too depend much on services.
Unfortunately sg don't have the space nor enough people to run a world class manufacturing. Switzerland only manufacture watches. They too depend much on services.
Exactly! That is why the budget will force some entities to relocate. Singapore has to be selective of the type of manufacturing such as Biomedical, Biotech (as of now) and other high value added manufacturing. Like the Swiss, maintaining a sustainable manufacturing sector will boost other related industries.
the worst is yet to come...
:o
the fact of the matter is when we take in less foreign workers, cost of doing biz will increase. on 1 hand, we will have less people to content with, on the other hand, inflation will rise.
the key is to be self sufficient so the impact will be minimal.
Taking in less foreigners just means businesses are less able to expand as before. Existing businesses with existing foreign workers are not losing these workers since they have not hit the DRC ratios. So i dun see how cost of doing biz will increase for this reason.... or should i rephrase more accurately as potential for greater unrealised profits is reduced, lol. In fact it is costs like rentals and utilities that are rising and adding to biz cost. I thought most here are property owners should know this fact, hehe.
Taking in less foreigners just means businesses are less able to expand as before. Existing businesses with existing foreign workers are not losing these workers since they have not hit the DRC ratios. So i dun see how cost of doing biz will increase for this reason.... or should i rephrase more accurately as potential for greater unrealised profits is reduced, lol. In fact it is costs like rentals and utilities that are rising and adding to biz cost. I thought most here are property owners should know this fact, hehe.
the foot massage I go to already suffering as they cannot get work permit renewed. call centre people cannot get renewedon their work permit in my company. then hired Singaporean. finally, closed it and shift to Philippines call centre. look at ratio reduced. of course it is good. I think that is the way, singaporeans pay will increase. I am so happy. of course along with it is higher cost. to me, I rather have higher cost as long as wage increase for the lower income. that's the way:D
the foot massage I go to already suffering as they cannot get work permit renewed. call centre people cannot get renewedon their work permit in my company. then hired Singaporean. finally, closed it and shift to Philippines call centre. look at ratio reduced. of course it is good. I think that is the way, singaporeans pay will increase. I am so happy. of course along with it is higher cost. to me, I rather have higher cost as long as wage increase for the lower income. that's the way:D
also when business cannot expand they do not achieve any economical of scale. sale for example central kitchen. If u have a central kitchen for 1 or 2 branch . verses central kitchen serving more branches. But u cannot assume static growth coz business need to innovate deliver new service and to continue to attract new customers.
so no business can just stay static and zero growth. it wont be viable long run.
if business zero growth the workers also have to accept zero pay increment or bonus. Part and parcel.
So to me this signal a continue inflation moving forward. Actually increasing pay of lower income is fine but are all lower income work force Singaporean? Is there a more targeted way of doing this? without acceleration of inflation?
inflation will continue for sure. control of foreign workers will result in cost increase. I am perfectly fine with it. but I am sure many will continue to complain. the foot massage shop already increase the price.
also when business cannot expand they do not achieve any economical of scale. sale for example central kitchen. If u have a central kitchen for 1 or 2 branch . verses central kitchen serving more branches. But u cannot assume static growth coz business need to innovate deliver new service and to continue to attract new customers.
so no business can just stay static and zero growth. it wont be viable long run.
if business zero growth the workers also have to accept zero pay increment or bonus. Part and parcel.
So to me this signal a continue inflation moving forward. Actually increasing pay of lower income is fine but are all lower income work force Singaporean? Is there a more targeted way of doing this? without acceleration of inflation?
the foot massage I go to already suffering as they cannot get work permit renewed. call centre people cannot get renewedon their work permit in my company. then hired Singaporean. finally, closed it and shift to Philippines call centre. look at ratio reduced. of course it is good. I think that is the way, singaporeans pay will increase. I am so happy. of course along with it is higher cost. to me, I rather have higher cost as long as wage increase for the lower income. that's the way:D
Supermarket - go checkout how many FW they have.
F&B - already in another thread that F&B is facing shortage of FW. No workers will also mean need to scale down or move operation somewhere else.
Foot massage - many are from China, if FW levy goes up and WP can't renew, not enough manpower liao. Cost went up so have to charge higher for massage service.
Hair salon - go check who are the people working in hair salon. Many are Malaysian. Already can't find local worker now with FWL going up so has to increase price or won't survive long.
F&B and retail are already facing increase in rental every year, shortage of local willing to work long hours. Now FW quota and levy also increase further. Cost too high lah.
Those in retail and F&B who continue to compete and maintain their price low won't be able to survive long. Only way to survive is to increase price.
You ask for who you get. So stay tune and see further inflation in restaurant food, massage, hair cut, etc ......
proud owner
26-02-13, 19:55
Supermarket - go checkout how many FW they have.
F&B - already in another thread that F&B is facing shortage of FW. No workers will also mean need to scale down or move operation somewhere else.
Foot massage - many are from China, if FW levy goes up and WP can't renew, not enough manpower liao. Cost went up so have to charge higher for massage service.
Hair salon - go check who are the people working in hair salon. Many are Malaysian. Already can't find local worker now with FWL going up so has to increase price or won't survive long.
F&B and retail are already facing increase in rental every year, shortage of local willing to work long hours. Now FW quota and levy also increase further. Cost too high lah.
Those in retail and F&B who continue to compete and maintain their price low won't be able to survive long. Only way to survive is to increase price.
You ask for who you get. So stay tune and see further inflation in restaurant food, massage, hair cut, etc ......
bro
can u enlighten me
without the FW ... are we not able to find similar skilled SC ?
or is it becos SC dont want to do these jobs ?
also without FW why should cost go up ?
are SC being paid more ?
totally agree. personally, when I enter the lift, I feel like I am in a foreign land. easily 6 out of 10 in the lift are foreigners.
so I really don't mind less foreigners. I also really don't mind inflation. something must give. so in this case, price increase (inflation).
but many going to complain :doh:
Supermarket - go checkout how many FW they have.
F&B - already in another thread that F&B is facing shortage of FW. No workers will also mean need to scale down or move operation somewhere else.
Foot massage - many are from China, if FW levy goes up and WP can't renew, not enough manpower liao. Cost went up so have to charge higher for massage service.
Hair salon - go check who are the people working in hair salon. Many are Malaysian. Already can't find local worker now with FWL going up so has to increase price or won't survive long.
F&B and retail are already facing increase in rental every year, shortage of local willing to work long hours. Now FW quota and levy also increase further. Cost too high lah.
Those in retail and F&B who continue to compete and maintain their price low won't be able to survive long. Only way to survive is to increase price.
You ask for who you get. So stay tune and see further inflation in restaurant food, massage, hair cut, etc ......
bro
can u enlighten me
without the FW ... are we not able to find similar skilled SC ?
or is it becos SC dont want to do these jobs ?
also without FW why should cost go up ?
are SC being paid more ?
take example foot massage. used to have say 10 staff, now cut to 7. Operating expense (rent, receptionist, electrical/water bill maintain, etc). now with 7 staff, biz, turnover lower, so if they cannot cover expense, price must go up.
why do you have too add the last bit ?
cant help but feel you are deliberately trying to turn this prop forum into a political one
Possible PAP IB....:doh:
take example foot massage. used to have say 10 staff, now cut to 7. Operating expense (rent, receptionist, electrical/water bill maintain, etc). now with 7 staff, biz, turnover lower, so if they cannot cover expense, price must go up.
We are in the fxxxx situation because rental is high for service industry...
My family is in food service industry and rental take up to 25% of our operating revenue...
To put it simply..
OP = Total revenue - rental - food cost - salary
How to pay more salary if rental (was 12%, now 25%) and inflation (was 22%, now 34%) keep going out.
To make profit.. we have no choice but to turn to fw..
All hard earn profit goes back to Gahmen or gahmen linked companies...and that is suck!!!
bro
can u enlighten me
without the FW ... are we not able to find similar skilled SC ?
or is it becos SC dont want to do these jobs ?
also without FW why should cost go up ?
are SC being paid more ?
I happen to know some friends who own retails. These are the feedbacks I got from them.
One of the main reason is SC don't want to do these jobs. Even if they want to do, they ask for high pay which is not viable from business sense. And many SC (I did not say all) working in these lines don't work as hard. Little bit they complain. A lot of patterns from SC workers in these lines & disruptive to their business operation and affect bottom line. Malaysian and other FW are more willing to put in more efforts and provide the added initiative needed to help to maintain the business.
Plus business owner are already facing yearly increase in rental. Many People has the wrong perception that retails business very good. 好赚。 They didn't know that many such shop actually change owners many times. 不知死的 new owner take over & will later realize that running such business is not easy as what they've expected. Typically they will tahan for about a year but will give up after that. Go walk around your neighborhood and chit chat with those shop owners. If you are observant enough, many such shops in shopping mall closed down or move somewhere else after their lease expire because of the rental increase.
Now I'm also thinking about construction line. This is one business which employ the most FW.
"For work permit holders, the increase is steepest for the construction sector at S$400 per worker."
What will happen to the construction cost? If construction cost goes up, what is the impact on the property price?
proud owner
26-02-13, 20:28
We are in the fxxxx situation because rental is high for service industry...
My family is in food service industry and rental take up to 25% of our operating revenue...
To put it simply..
OP = Total revenue - rental - food cost - salary
How to pay more salary if rental (was 12%, now 25%) and inflation (was 22%, now 34%) keep going out.
To make profit.. we have no choice but to turn to fw..
All hard earn profit goes back to Gahmen or gahmen linked companies...and that is suck!!!
ic that really sucks
is there anyway to work around it ?
with fewer FW ( i presume they are cheaper than local SC) ... can you reduce the FW on area that wont be affected ?
say waiter/waitresses ... fewer of them will it drastically affect the service and turnover ?
perhaps only diners getting their food a little later than usual ...
in the case of super market ... most cashiers are local ... cutting down on FW which are mostly in the stores / cleaning etc .. will it affect sales ?
I fully understand your position. Singapore is the toughest place to do biz. in Malaysia, rental low, staff relatively inexpensive. when I was in kl, I already see many fw working in the food industry. and the charges are high, 1 cup of coffee cost 2 rm.
We are in the fxxxx situation because rental is high for service industry...
My family is in food service industry and rental take up to 25% of our operating revenue...
To put it simply..
OP = Total revenue - rental - food cost - salary
How to pay more salary if rental (was 12%, now 25%) and inflation (was 22%, now 34%) keep going out.
To make profit.. we have no choice but to turn to fw..
All hard earn profit goes back to Gahmen or gahmen linked companies...and that is suck!!!
We are in the fxxxx situation because rental is high for service industry...
My family is in food service industry and rental take up to 25% of our operating revenue...
To put it simply..
OP = Total revenue - rental - food cost - salary
How to pay more salary if rental (was 12%, now 25%) and inflation (was 22%, now 34%) keep going out.
To make profit.. we have no choice but to turn to fw..
All hard earn profit goes back to Gahmen or gahmen linked companies...and that is suck!!!
So are u saying if rental is lower u wont hire FW? and hire Singaporean and pay more?
I fully understand your position. Singapore is the toughest place to do biz. in Malaysia, rental low, staff relatively inexpensive. when I was in kl, I already see many fw working in the food industry. and the charges are high, 1 cup of coffee cost 2 rm.
Not true, Spore is the best place to do business in the world.
http://www.straitstimes.com/breaking-news/money/story/singapore-named-best-country-do-business-again-20121023
Not true, Spore is the best place to do business in the world.
http://www.straitstimes.com/breaking-news/money/story/singapore-named-best-country-do-business-again-20121023
http://www.asiaone.com/A1Business/General+News/Story/A1Story20121023-379332.html
The report uses 11 indicator sets to measure business regulation in 185 economies. :doh: :doh: :doh:
u try running your own biz. rental and salary are killers. ease of doing biz is different from cost of doing biz. :doh: :doh: :doh:
So are u saying if rental is lower u wont hire FW? and hire Singaporean and pay more?
We used to employ all singaporeans just a few years back...
With each increasing of rental and cogs... we turn to fw progressively as we cannot offers competitive increment to locals..
We would love to have more locals
We support locals but with gahment (thru taxes) or gahment linked companies charging for services, rental etc (you know what this means)...
Some how.. we are damn afraid of receiving "help" from gahmen.. as the more they "help" the more we have to pay...
As for the 40% support for salary increment... that is goooooood for us as we can pocket the different.. as a matter of fact.. we are not planning to increase more salary for our workers (mostly FW) ... rather we see this as an opportunity for us to recoup some cost... regardless of this help we only plan to increase max 5% for wages... and with 40% funding... we can recoup 2%... bottleline... nothing will change... business gained at employees expense...
http://www.asiaone.com/A1Business/General+News/Story/A1Story20121023-379332.html
The report uses 11 indicator sets to measure business regulation in 185 economies. :doh: :doh: :doh:
u try running your own biz. rental and salary are killers. ease of doing biz is different from cost of doing biz. :doh: :doh: :doh:
For manufacturing... salary is killing..
For service industry....rental is killing..
Our gahment totally missed the points!!!!
Also.. the car tax will.benefit the rich.. penalise the poor..
Wtf!!!
ic that really sucks
is there anyway to work around it ?
with fewer FW ( i presume they are cheaper than local SC) ... can you reduce the FW on area that wont be affected ?
say waiter/waitresses ... fewer of them will it drastically affect the service and turnover ?
perhaps only diners getting their food a little later than usual ...
in the case of super market ... most cashiers are local ... cutting down on FW which are mostly in the stores / cleaning etc .. will it affect sales ?
We have already go lean...
We have tried centralise cooking.. streamline working hours.. simolification of tasks etc...
How much can we expect to change for char kway tio and fried prawn noodle?
Can we use robot to cook kway tio or prawn noodle?
For every outlet, we need minimum 4 person.. 2 person per shift..
What can we do? Cut to 1 person per shift like SBS bus OMO?
Just to share the dark side of rental...
We rent stalls with major coffee shop chain..
Typically.. rental is charge at a fixed% proportionally to our monthly sales.. so if you think we will make more $$$ woth more sales.. think twice again.. our profit will increase marginally as rental become variable cost...
china sport brand 'li ning' already close shop here because of high rental..
:o
I understand. main bulk of gross profit goes to rental. landlord the best. biz down, still charge rental. biz good at stall, charge higher rental. my friend used to run a shop, profit only 10k. decided to rent out the shop. rental 20k. in holland v. that was 20 years ago.
We have already go lean...
We have tried centralise cooking.. streamline working hours.. simolification of tasks etc...
How much can we expect to change for char kway tio and fried prawn noodle?
Can we use robot to cook kway tio or prawn noodle?
For every outlet, we need minimum 4 person.. 2 person per shift..
What can we do? Cut to 1 person per shift like SBS bus OMO?
Just to share the dark side of rental...
We rent stalls with major coffee shop chain..
Typically.. rental is charge at a fixed% proportionally to our monthly sales.. so if you think we will make more $$$ woth more sales.. think twice again.. our profit will increase marginally as rental become variable cost...
http://www.asiaone.com/A1Business/General+News/Story/A1Story20121023-379332.html
The report uses 11 indicator sets to measure business regulation in 185 economies. :doh: :doh: :doh:
u try running your own biz. rental and salary are killers. ease of doing biz is different from cost of doing biz. :doh: :doh: :doh:
so what is stopping these biz from moving to cheaper countries like indon, malaysia, vietnam, africa, and so on but with a lot of other hidden costs? :doh:
spore has never been cheaper than these countries, how come until now still dont relocate? looks like these biz owners just love to complain. :doh:
Two cases which I'm aware of
Case 1: A relative was running a small business near Jurong East Mrt. Initial shop rental was 6k and raises to 8.5k after a few yrs. His business just manage to float on water with 8.5k rent. When the lease expired about 3yrs ago, the private shop owner told him the rent will be >10k. So he decided to closed down the business and went back to work as an employee.
Case 2: two friends partnered and opened a shop. They hired a staffs plus themselves so have 3 persons running the business. Just before the CNY month, they hired another part-time anticipating increase in business. Business was good and when they gave out the pay, they noticed that their staffs are getting higher salary than them. Their staffs gets around 4-5k including commission and they themselves get only 3k each. What a joke. Like that better close shop and go and work as employee better. I don't think they can survive long.
These small business owners are not MNC. They don't have the capital & resources to venture out of Singapore. Their margin are low. So most of the time just manage to survive provided the rent and labor cost don't go too high.
Big shops selling branded goods like LV, Chanel, Rolex, PP has high profit margin so they can afford the high rental cost. However, there are also other big players like Borders, LiNing who chose to left because of high cost here.
Two cases which I'm aware of
Case 1: A relative was running a small business near Jurong East Mrt. Initial shop rental was 6k and raises to 8.5k after a few yrs. His business just manage to float on water with 8.5k rent. When the lease expired about 3yrs ago, the private shop owner told him the rent will be >10k. So he decided to closed down the business and went back to work as an employee.
Case 2: two friends partnered and opened a shop. They hired a staffs plus themselves so have 3 persons running the business. Just before the CNY month, they hired another part-time anticipating increase in business. Business was good and when they gave out the pay, they noticed that their staffs are getting higher salary than them. Their staffs gets around 4-5k including commission and they themselves get only 3k each. What a joke. Like that better close shop and go and work as employee better. I don't think they can survive long.
These small business owners are not MNC. They don't have the capital & resources to venture out of Singapore. Their margin are low. So most of the time just manage to survive provided the rent and labor cost don't go too high.
Big shops selling branded goods like LV, Chanel, Rolex, PP has high profit margin so they can afford the high rental cost. However, there are also other big players like Borders, LiNing who chose to left because of high cost here.
Well u cant have cheap labour now coz no one want to see them. the shop owner should hire all Singaporean. if cannot afford then ask the 1 Singaporean to do what he paid the 4 cheap labour to do. That also wont last . in the end just hire back 4 Singaporean pay Singapore rate. Pass the cost to consumers. but that also wont last coz the 4 Singaporean after a while will feel FXXK high pay also no meaning. Thing so FXXK EX! we are Underpaid. In the end also close down. all go squat n suck thumb.
:D
We used to employ all singaporeans just a few years back...
With each increasing of rental and cogs... we turn to fw progressively as we cannot offers competitive increment to locals..
We would love to have more locals
We support locals but with gahment (thru taxes) or gahment linked companies charging for services, rental etc (you know what this means)...
Some how.. we are damn afraid of receiving "help" from gahmen.. as the more they "help" the more we have to pay...
As for the 40% support for salary increment... that is goooooood for us as we can pocket the different.. as a matter of fact.. we are not planning to increase more salary for our workers (mostly FW) ... rather we see this as an opportunity for us to recoup some cost... regardless of this help we only plan to increase max 5% for wages... and with 40% funding... we can recoup 2%... bottleline... nothing will change... business gained at employees expense...
so if rental is lower u will hire Singaporean? I mean luv to hire but in reality?
For manufacturing... salary is killing..
For service industry....rental is killing..
Our gahment totally missed the points!!!!
Also.. the car tax will.benefit the rich.. penalise the poor..
Wtf!!!
car tax the rich. how benifit the rich? middle class no need drive high end car. If u drive a merc or BMW or Lexus means u are rich
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