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Market-driven pricing approach led to higher costs: Inderjit


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The market-driven pricing approach taken by the government has contributed to cost in Singapore rising so rapidly, beyond the rate of growth of incomes of Singaporeans and beyond the rate of growth of company profits, Member of Parliament (MP) for the Ang Mo Kio GRC Inderjit Singh said on Tuesday.

 

He noted that the government has often been quick to increase its various charges, allowing costs to escalate, immediately upon a recovery from an economic recession.

 

'Each time this happens, we bring the cost base higher without having an opportunity for cost reductions. This has led costs to unrealistically increase faster and more than profit and income growth,' Mr Singh said.

 

An example was in 2008, when property prices rose despite the recession because of 'liberal policies on capital inflows'.

 

'While the government should not interfere in the private market except to curb speculation, it could have done a lot for the HDB market had it not pursued market driven pricing,' Mr Singh said.

 

'Also market driven pricing has created huge cost burdens and will potentially edge out many of our SMEs because of squeezed margins,' he added.

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So doe she has any solution?

of cos, they're so talented sure come with solution - implement some policy to collect more $$ for the government. That's the one and only thing they are good at

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The market-driven pricing approach taken by the government has contributed to cost in Singapore rising so rapidly, beyond the rate of growth of incomes of Singaporeans and beyond the rate of growth of company profits, Member of Parliament (MP) for the Ang Mo Kio GRC Inderjit Singh said on Tuesday.

 

He noted that the government has often been quick to increase its various charges, allowing costs to escalate, immediately upon a recovery from an economic recession.

 

'Each time this happens, we bring the cost base higher without having an opportunity for cost reductions. This has led costs to unrealistically increase faster and more than profit and income growth,' Mr Singh said.

 

An example was in 2008, when property prices rose despite the recession because of 'liberal policies on capital inflows'.

 

'While the government should not interfere in the private market except to curb speculation, it could have done a lot for the HDB market had it not pursued market driven pricing,' Mr Singh said.

 

'Also market driven pricing has created huge cost burdens and will potentially edge out many of our SMEs because of squeezed margins,' he added.

 

Don't quite agree with it, there is a lot of underlying issues beside market driven approach that pushes price up. Cannot because of that say market driven approach contributes to cost in Singapore rising so rapidly.

 

I mean people naturally want products that is cheap and good, business side will have to think of ways to make products of low cost yet good.

 

It is because of combinations of many factors that pushes price up and not purely free market approach. Generally free market approach will stabalise itself where prices become too expensive due to when things get too expensive, no one will want to buy and business side will have no choice but to down price to match free market demand those who cannot match market demand due to too expensive, there it is the companies that is non-profitable in the 1st place to be in and they should be the one that to be taken over by other companies who can match up with market and make cheap and good products and yet profitable for the company.

Edited by Yewheng
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Don't quite agree with it, there is a lot of underlying issues beside market driven approach that pushes price up. Cannot because of that say market driven approach contributes to cost in Singapore rising so rapidly.

 

I mean people naturally want products that is cheap and good, business side will have to think of ways to make products of low cost yet good.

 

It is because of combinations of many factors that pushes price up and not purely free market approach. Generally free market approach will stabalise itself where prices become too expensive due to when things get too expensive, no one will want to buy and business side will have no choice but to down price to match free market demand those who cannot match market demand due to too expensive, there it is the companies that is non-profitable in the 1st place to be in and they should be the one that to be taken over by other companies who can match up with market and make cheap and good products and yet profitable for the company.

you only need to go back to the recent Lehman crisis to see what unbridled "market driven" means.

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you only need to go back to the recent Lehman crisis to see what unbridled "market driven" means.

 

Should the Lehman crisis had not happen, things will keep getting worst, it,s like balloon, keep get inflated, sooner or later ballon will burst. Actually to solve the problem early is better to solve the problem at later stage.

 

I mean Lehman crisis happen is because of how US government policies that accunculate that causes it. So that is market driven approach??

 

Basically too long to explain I cut shot, it all started with housing bubble that causes the crisis. And why there is housing bubble?? It is because of government past intervention to prevent free market to function that causes it.

Edited by Yewheng
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