Many small business find it difficult to survive. They have to pay high rental and credit to run their business. These high cost have to be passed to their customers in the form of higher prices.
As business premises and credit are under the control of a few people, they are able to increase the rental and interest rate on loans. They make excessive profit and cause a heavy burden on the small business and the consumers.
These high costs can be controlled by the government through legislative measures, e.g. to set caps on rental rates or the cost of capital, or to provide alternative sources of supply through the public sector.
Many years ago, HDB provide shops at affordable prices. It allows the shop keepers to offer their goods and services at lower prices and make a reasonable profit. If they overcharge and make a larger profit, another business will be set up to provide an alternative at a lower price.
This is competition at its best, in bringing the prices down to a reasonable level, based on the cost of doing business plus a fair margin of profit.
In America, the anti-trust law is designed to ensure that there is fair competition and that any business is not allowed to grow so large that they can dominate the market and have unfair pricing power.
We also need controls to ensure that property owners and bankers do not take an excessive share of the value chain, at the expense of the customers, workers and the small business owners. It is desirable for these business costs to be controlled, to promote a healthy competitive market.
Tan Kin Lian
- ► 2013 (307)
- ► 2012 (1270)
- ► 2011 (1873)
- ► 2010 (2369)
09/27 - 10/04
- Crashgate - it ain't over
- An honest agent
- RED Portal (15) Property Report
- Free market (11) - Customer satisfaction
- Tough time ahead for US and global economy
- Digital Health Records in USA
- Electronic Medical Record - Singapore
- Marketing technique of property consultant
- Privacy of patient data
- Central Medical Records
- Benefit Illustration for a Life Insurance Policy
- Special treatment for Minibonds
- Free market (10) - Consumer protection
- Difference of 20% in Term Insurance premium
- RED Portal (16) - Nearby Projects
- Bad advice by agents on Term Insurance
- US economy is still struggling
- Minibond holders may get back some money
- Waste in health care
- Swiss health care system
- Book: Bad experience on financial products
- Talk on solving puzzles
- High upfront charge
- Lower return expected in the future
- Slot in cash card to enter and leave car park
- Scam involving Australian property
- Free market (9) - Corporate social responsibility
- Financial innovation that are useful to consumers
- Free market (8) - Access to credit
- Protect the interest of first time home buyers
- Old ezLink cards cannot be used from 1 Oct 2009
- Law professors lobby for consumer protection agenc...
- Financial innovation
- Health care system in Germany
- RED Portal (15) - Rental Rates
- ProTrader - Financial Trading Game
- Impact of a reduction in yield
- Taking a housing loan
- Using bicycle for the last mile
- Accumulation of Savings
- Free market (7) - Lower fixed cost
- Taxation and social services
- Australia court allows claims against Lehman
- RED Portal (14) - Transacted Prices
- Elevated covered walkways
- Free market (6) - Opportunity to work
- Attracting business into Singapore with lower taxe...
- Fair distribution of work
- Rate of pay
- FISCA Assistance to consumers
- Free market (5) - Cooperation, not competition
- ▼ 09/27 - 10/04 (52)
- ► 2008 (2105)
- ► 2007 (1803)
- ► 2006 (696)
- ► 2005 (159)