10 Jan '12, 12am

The real cost of GST

TKL has a point here, our competitiveness has been eroding consistently through the years. High cost is the impeding stone under our feet. Businesses have to resort to saving costs in other ares in order to survive or maximize profits, Take SMRT as an example. Maintenance costs of rails and renewal or addition costs of trains are high. So SMRT, under former CEO, Saw, resort to importing of cheaper trains manufactured in China to cut renewal costs and maintain ever demanding profits on its balance sheets. But the China made trains are not compatible with our older rail models, resulting in the new trains damaging the rails, thus creating the recent hula hula train chaos. A CEO with rail engineering background would have seen such incompatibility, not a property retail specialist, hired by Ho Ching back in 2002. So high costs is a prime factor in producing low quality produc...

Full article: http://tankinlian.blogspot.com/2012/01/real-cost-of-gst.html

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