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PR Newswire
28-10-2013, 10:00 AM
Further pressure from inflation is expected. Let's wish that it comes with better quality products and services...
Rising business costs may be passed on to consumers
SINGAPORE — As business costs continue to rise, trade associations are warning that companies may be forced to increase prices to maintain their profitability.
Singapore Business Federation Chief Executive Ho Meng Kit said pressure on the business community to maintain profitability in the face of higher costs is intensifying: “Even as Singapore expects economic growth for the full year in 2013, businesses continue to face cost adjustments ... there are also small and medium enterprises (SMEs) that find it harder to borrow, due to their lower profitability amid the current tougher environment.
“With this in mind, it is inevitable that consumers may expect to see some costs being passed on.”
The warning comes in the wake of the Monetary Authority of Singapore and the Ministry of Trade and Industry flagging last week the risk of higher core inflation as a result of rising pressure on labour, land and transport costs.
Mr Thomas Fernandez, Vice-President (Communications) of the Association of Small and Medium Enterprises, said rising costs have had a “detrimental” effect on the bottom line of many SMEs, which make up more than 90 per cent of all businesses in Singapore.
“Although this might not be sustainable in the long term, some companies might pass this additional cost on to consumers,” he said, adding that some businesses may resist raising prices out of fear that they will lose their competitiveness.
...
http://www.todayonline.com/business/risi...-consumers
Rising business costs may be passed on to consumers
SINGAPORE — As business costs continue to rise, trade associations are warning that companies may be forced to increase prices to maintain their profitability.
Singapore Business Federation Chief Executive Ho Meng Kit said pressure on the business community to maintain profitability in the face of higher costs is intensifying: “Even as Singapore expects economic growth for the full year in 2013, businesses continue to face cost adjustments ... there are also small and medium enterprises (SMEs) that find it harder to borrow, due to their lower profitability amid the current tougher environment.
“With this in mind, it is inevitable that consumers may expect to see some costs being passed on.”
The warning comes in the wake of the Monetary Authority of Singapore and the Ministry of Trade and Industry flagging last week the risk of higher core inflation as a result of rising pressure on labour, land and transport costs.
Mr Thomas Fernandez, Vice-President (Communications) of the Association of Small and Medium Enterprises, said rising costs have had a “detrimental” effect on the bottom line of many SMEs, which make up more than 90 per cent of all businesses in Singapore.
“Although this might not be sustainable in the long term, some companies might pass this additional cost on to consumers,” he said, adding that some businesses may resist raising prices out of fear that they will lose their competitiveness.
...
http://www.todayonline.com/business/risi...-consumers
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