First there was admission but it was quickly followed by a denial. Minister without portfolio Mr Lim Swee Say said at the National Day observance ceremony, “being a high cost location does not mean being a high cost location.” He was referring to the high costs of doing business in Singapore.
It is anybody’s guess as to how he made that logical leap to make an oxymoron statement like that – How can a high cost location not be a high cost location? I suppose the cost of living or doing business in Singapore is relative to one’s pay-check.
Leading economists think that the rising costs of doing business in Singapore is hurting us and the productivity and innovation drive by the government is not so effective and may lead to a deep recession like the one we experienced in 1985.
We have seen a rise in wages but not a corresponding increase in productivity. And increases in prices will eventually lead to an inflationary spiral which may lead to stagflation.
A strong Sing Dollar also means that our goods and services are less competitive in the global markets.
Overall, economists paint a very bleak picture for Singapore’s economy in the near future. It seems like we are heading into choppy waters and the rubbish spewing minsters are not giving us any reassurances about the health of our economy.
Face it Swee Say, with Singapore ranked as the most expensive city, we are a high cost location, period. At least, get your facts right before distorting it.