Price hike in Singapore

Since June this year, when the lease of those shops in Lucky Plaza are due for renewal, they will have a hefty increasement, ie from S$3000/- to S$5000, from S$4000/- to S$7000. Those shop belonged to the private owner will have moderate increasement from S$3000 to S$4000/- after much negotiation. Almost all food store raised their price, the Nasi Lemak from S$3/- to S$3.30/-, the fish noodle from S$3.50 to S$4/-, the Meesiam from S$2/- to S$2.50, even the desert from S$1.50 to S$1.80/-.

The society nowadays has full of greedy people, and mean organisation. I heard the landlord will tell the tanents take it or leave it. They rather leave the unit empty then lower the increments to the existing tanents. Hence, you see shops which operate for 6-8 years in the same trade either end their business, forget about the business altoghter or move to other place and start all over again.

Nowadays the small business is very hard to survey, it is not because there is no business, it is because the rental make the business seems impossible.

Today, I heard someone goosip, the food store at the ground floor of Penisular was raise from S$7000/- to S$13,000/-. The store are selling Malay food average S$3-S$4/- per dish, and the old lady has to ford out money every month, because the rental is too high. Although the food is good, but no one know how long can the old lady survives by fording out money every month.

In good old day, the bread cost S$0.50/- , now the same things will cost at least S$1.50/-. Why? Because the rental is high! The businessman has to pass the cost to the consumer, whereesle can they get the money from?

Some said it is an unavoidable situation, because today you get a nicer and better infrastructure, you enjoy cosy aircon, the shop has beautiful display that make the consumer easiler and confortable to shop. Yes, it is unavoidable, the fitter will stay, right! See, you go every corner, you will see This Fashion, Breadtalk, Mcdonld, KFC, Kopitian, Old Change kee.................. They have the right formular for business, they not only survive, they expand.

You want to be an entrepreneur, it is not impossible but it is very difficult. If you want to get a proper place before you start your business, there is no gurantee of success, because before you make money, you have to cover the overhead and the expenses. You have to have initiate capital outlay, the running cost and the cash flow.

Of course, if we compare ourself with some other countries, we will be grateful that their GST is 17%, our GST only 7%, their income tax is 40% while ours is 20 -t0 30%.....

Life is a challenge not only in Singapore, I think every where in this world. We human created the competition, whether you like it or not, we are all involved one way or another.