GST Increase + Nets Fees Increase

juinjuin

Retailers will be hit by a double whammy coming this 1 July. GST will be increased from 5% to 7%, while Nets administrative fee will be increased from the current 0.35~0.55% to 1.5~1.8%. Very well coordinated moves indeed.

Read in the papers today that the Nets increase is to make itself more competitive. I thought competitiveness is typically achieved by cutting costs with the ultimate aim of providing cheaper goods/services vis-a-vis competitors? (Well at least thats what the gahmen always hype about...we must maintain our competitivesness by keeping costs low blah blah) Am I missing something? Maybe because Nets has no competitors to speak of?

Please englighten me........................

Bambie

My guess: Net's operating cost has been increasing, eg, labour etc, but their prices had remain unchanged. Same revenue - increasing cost = lower profit , which might means lesser funds for staff development, leading to higher staff turnover, losing their competitiveness as their staff went on to other different companies which they keep focusing on hiring new staff and training them for "others"...

Hence, to remain competitive, they see a need to increase prices. Just my hypothetical example...:P

And Nets certainly has its own competitors. The credit/debit cards, PayPal, cash, etc are all its competitors as people can choose not to make use of Nets to make payment.

No doubt that retailers will most likely be affected slightly with the increase of GST and Nets admin fee, which of coz, I believe, will be passed down to the customers ultimately, I think customers are really the people affected at the end of the day. But then again, it is only a matter of time that everybody is out again, shopping and buying, just that way it is....

Just like Taxi fares increase. People was saying will take less cab, but according to some taxi drivers whom I have casually asked whether business is affected after the fare hike, the response was, after the announcement, yes, a small dip in the number of passengers, but after that, it was back to previous situation...Guess that's just life.. People adapts...

felisthestore

I don't agree that Nets needs to have any fees. I have a 55 year old mother and I don't want her to go around carry loads of money when she needs to go to supermarket. She doesn't carry any debit/credit card coz she never signs for her items. What if, touch wood, she got rob? Who's responsible for it? Nets it's easy for old timers.

jazzloo

It's inevitable that prices will increase all around! Ministers' & gahmen servants' salaries have gone up. Private sector salaries have gone up... a whole chain effect will follow.

Companies have to increase prices for their goods & services to pay higher salaries. Of course many in the private sector may not get any salary increases... that's just too bad. What else have gone up... gst, cable tv, nets.erp, etc... there'll be more to come.

Hey this is Singapore! Enjoy!

cashmere

Ya....The government will keep increasing the prices of things...
& all we do is complain to ourselves & to our friends, etc...
S'poreans will simply just take in whatever that comes to us &
settle down after a few days/months of complaining...
That's why they can just increase anything anytime they want without any problem.
Like jazzloo just mentioned: "This is Singapore!"

xoxoxo

Doing business in Singapore is becoming harder.

otterised

doing bizness in sgp FOR SMALL BIZ OWNERS are getting harder~ the govt only helps the rich~ whahahaa

commoncents

I agree with you dudes out there. The price hikes etc, its inevitable though.

But let's look at the brighter side as Singapore ought to move forward. The 7% may be too much for us at this moment but if we look around us especially in those mature countries, their tax are pretty much steep with an average range of 12% above. Believe me for an example, certain local prices are tagged coming close to the ones in Tokyo standard! Of course, the living standard varies among them.

As business minded people, we ought to see it coming. I have no qualms about it though but at the same time I'm kinda frustrated by the clearly "one-sided" game in Singapore until we have no freedom to choose among the main service providers.

My personal opinion on these: it's all begin with one simple phenomenon, "nepotism". It could be the thing that Singaporeans have been indirectly advocating our leaders to infuse them since the beginning.

What we need are competitors and more of them. It's clear that all these hikes are one of our gov moves to slow down the competitors while reaping rewards providently through them.

Try to name those major providers in Singapore and don't be surprised that everyone of them is linked within the "nepotism" ideology/network. As chinese dialect goes "chak bueh liao".

On hindsight, I'm glad that some entrepreneurs are bold enough to put up a challenge to the "nepotism" ideology. Many have come this far to grab their slice of the big pie. To name few: Sheng Shiong, Mustafa Centre (although need expansion), the colourful taxi companies and several other small/medium players whilst others still coming up - and who knows it will be among some of us.

The increase standard of living and other consumables are pretty scary. Nevertheless, we shall see it pass before we knew it. Luckily the NSWU pulled out as quickly as possible knowing that it's ludicrous to have a base in Singapore whilst the local educational institute are beefing up in stealth mode.

Well...there's so much to be said but let's have a brief break to ponder few things.

Best wishes everyone!

chuankai

That's probably why the rich are getting richer. *shrugs*

cashmere

And they won't stop increasing till it's 10%.
Double SIGH!!