Cost of rental making Singapore a less attractive proposition for business
About 7 in 10 foreign businesses operating in Singapore are ready to relocate their employees out of Singapore should operational costs continue to soar.
European and foreign companies are genuinely considering relocating part of their business outside Singapore, said the European Chamber of Commerce (EuroCham), which recently conducted a survey to access the extent and severity of the impact of raising costs of rental on business operations in Singapore.
The most important factors cited by the respondents for an increase in operational costs include the residential allowances paid to employees for the cost of rental (22%), general cost increase due to inflation (21%), and rising salaries (18%).
On how badly their business has been affected by rising costs of residential rental, more than half (53%) gave a rating of four or five on a five-point scale, with five being the most badly affected.
Speaking with Singapore’s TODAY publication, Federico Donato, President of EuroCham, urged the Singapore government to intervene in the housing market to drive down the prices of rent, or implement a price ceiling.
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He said, “As the rental has increased by a large extent, Singapore’s attractiveness to businesses has likewise been harmed. This is the most dire it has been in the last 10 years, from our knowledge.”
The EurocCham survey was done in collaboration with 14 European national business groups, the Singapore International Chamber of Commerce, the British Chamber of Commerce Singapore, and the Canadian Chamber of Commerce in Singapore.