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A larger number of small and medium enterprises (SMEs) here are facing higher business costs due to higher staff salaries as well as rentals and property tax, according to the latest survey by Singapore Chinese Chamber of Commerce and Industry (SCCCI).
Compared to 70.9 percent in 2013, business costs hikes due higher employee salaries were reported by 80.3 percent of the respondents, while those blaming rentals and property tax rose to 64.2 percent, up from 62.3 percent.
At 69.6 percent, firms in the service sector are the most affected by rising rents, while 54.2 percent of the companies in the manufacturing industry indentified it as a contributing factor to rising costs.
Aside from other assistance schemes, inexpensive business space is a vital form of government aid, stated 44.4 percent of those polled.
According to SCCCI, HDB and JTC Corporation should therefore continue to provide industrial and commercial space in order to keep rental rates affordable.
Separately, 40.5 percent of the respondents urged the government to avoid imposing new policies too frequently.
“Frequent introduction of new policy measures creates administrative burden and increases compliance costs for SMEs. The government should engage businesses and trade associations and chambers closely to take into account business impact,” it added.
In total, SCCCI polled 645 businesses. 88 percent are decision-makers and business owners, while 97 percent are SMEs.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this and other stories, email nikki@propertyguru.com.sg
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