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Singapore Budget 2014: Inderjit warns rising costs may lead to 'hollowing out' of economy

Published on Mar 4, 2014 12:48 PM
 
The Budget should be lauded for achieving its social aims, but it completely ignored the important issue of rising costs facing all companies, said Ang Mo Kio GRC MP Inderjit Singh. -- ST FILE PHOTO: NURIA LING 

The Budget should be lauded for achieving its social aims, but it "completely ignored" the important issue of rising costs facing all companies, said Ang Mo Kio GRC MP Inderjit Singh.

"We are at a critical stage and I feel the government has under-estimated the impact of high business costs on our future economy," said Mr Singh during the Budget debate in Parliament on Tuesday.

"The reality is that cost and cash flow are bigger problems in our business landscape than some of us may imagine to be."

All companies - not just small- and medium-sized enterprises (SMEs) - are facing a "triple whammy" of rising rentals and utilities costs, labour costs and a shortage of workers, he added.

 
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