Singapore “drives fast, good world”, because it took the lead in customs clearance, it attracted a large number of foreign-funded companies and personnel in the past year, and Hong Kong was “pressed and robbed”, and the bleeding continued. It was a miserable situation. However, the local prosperity began to show the side effects of “high fever”. The European Chamber of Commerce in Singapore recently interviewed 268 European companies, and 53% said that the sharp rise in local rents has seriously affected their operations, and employees are under great pressure. Nearly 70% of the companies are planning to relocate. away from Singapore. The rich man Chen Maobo is visiting Xingxing these two days, so he should take advantage of the complaints from foreign businessmen and privately persuade them to return.
According to the latest survey, the skyrocketing rent in Singapore has caused many European companies and expatriates to complain. Nearly 70% of the companies are struggling and intend to move out.
The “Survey on Rising Rental Costs” conducted by the European Chamber of Commerce in Singapore this time not only interviewed European companies, but also included members of the British Chamber of Commerce and the Canadian Chamber of Commerce, which is very representative. The survey results show that rents have indeed risen astonishingly. Half of the employees who signed new residential leases this year or last year saw their rents rise by more than 40%, and the other 30% increased their rents by 20% to 40%.
The worst thing is, because many companies are unwilling to increase operating costs, 62% of expatriates do not receive rental subsidies from the company, or the subsidy is less than S$1,500 to cope with the rent boom. That is to say, their salaries are in vain, “water melon beats dogs” and they are naturally very unlikey and even anxious.
Among the companies surveyed, 69% said they are planning to relocate their staff out of Singapore if the rent does not drop, or if the government does not help them relieve pressure. They didn’t say they would transfer there, but some of them were already hunting for food in Hong Kong, so repatriation should be the first choice.
Another survey interviewed more than 100 German companies, half of which expect rents to rise by 30% to 50% this year, and some even predict an increase of more than 50%. Due to the rising cost of rent and the difficulty of recruiting talents, 43% of the companies surveyed are considering moving out.
A professional friend from Hong Kong who works in Sin Chew told me that when he arrived a year ago, it was very difficult to find an apartment. Rent is also hard to find. He himself signed a two-year lease. It is estimated that if he renews the lease after more than a year, the rent will be increased by at least 75% at any time. At that time, he must seriously consider whether to stay or leave.
In addition to expensive rents, Singapore’s daily expenses are not too high. In the “City Living Cost Rankings” compiled by the Economist Intelligence Unit earlier, Singapore ranked first among 172 cities, tied with New York as the “Double Champion” ”, while Hong Kong only ranked 4th. In fact, the local consumer price index (CP) reached 5.5% in January, hitting a 14-year high, reflecting the high cost of everything, and the employees of foreign-funded companies will have no good life unless they keep raising their salaries.
The rich man Chen Maobo is visiting Singapore, and he and officials should privately persuade local foreign companies to return to Hong Kong.
The world takes turns. In recent years, Singapore has become rich and powerful, but now it has started to suffer from the side effects of “high fever”. On the other hand, Hong Kong quickly returned to normal after opening the gates. Office and residential rents have fallen in recent years and have not yet rebounded. Inflation is also at a low level.
The new government has set up the “Office for the Introduction of Key Enterprises”, and Invest Hong Kong is also actively attacking. The government should “take advantage of the (Sin Chew) burning” and try to attract those foreign companies that have transferred to the local area to return.
Tokihito Monogatari
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