EARLY last month, business analyst Rachel Lee paid $750 to buy a kimono from Japan through eBay.

She wanted to wear it to attend her company's travel-themed dinner and dance. But a week later, the 24-year-old was told that the event, scheduled for next weekend, was cancelled.

'Most of our work involves running around to clients' places, so I was looking forward to meeting colleagues at the event,' said Ms Lee, who works in an IT consultancy.

Last year, its 400 employees partied at a four-star hotel, complete with an eight-course dinner and free flow of alcohol. 'But for cost-cutting's sake, we'll just have to put up with the cancellation. At least it'll impact our morale less than cutting staff,' she said philosophically.

Read the full story in the Sunday Times today.

The annual dinner and dance - is it important with the economic downturn? Have your say at straitstimes.com