Sunday, January 2, 2011

High cost of doing business

I experienced the high cost of doing business in Singapore. I had to pay a professional fee of $3,500 for an engineer to certify that the renovation to my premises is safe. I saw the drawing done by the engineer. It is similar to the drawing that done by me to ask for quotation. A fee of $500 would be more than adequate.

My staff faced a lot of trouble in applying for a work permit through the online process of the Ministry of Manpower. Each application took more than 10 hours of my staff's time to go through the many stages of the complicated process. Many telephone calls have to be made to seek clarification to go though the computer system.

The application for utility supply to the premises also took many hours. The process is complicated. Many telephone calls have to be made to the utilities company and the building developer to get information for the application. Many telephone calls are not answered.

The time spent by my staff has to be reflected in my cost of doing business. My staff do not work for free.

Each government agency and privatized company, operating under a near monopoly, can impose its costly requirements in time and money on the public, but the government leaders must realize that they add to the cost of doing business, which has to be covered by higher prices to be paid by the citizens.

The situation has become very bad in recent years, and is exacerbated by the high property prices, also an outcome of government policies, which adds to the cost of doing business and the cost of living. Matters have really got out of hand.

Tan Kin Lian