I made a study of the corporate profit in Singapore and found the following:
In year of assessment 2011, a total of 57,000 companies reported a total profit of $90.4 billion, while 106,000 companies reported a total loss of $63.8 billion.
Why are so many companies reporting a loss? It represented 65% of companies making a tax return.
The number of loss making companies increased from 104,000 in 2003 to 165,000 in 2011. The average loss per company increased from $210,000 to $600,000. This is a staggering sum.
Do these figures suggest that it is difficult for small businesses to be profitable in Singapore and that the cost of doing business is so high?
And, if it is not profitable, how do so many companies continue to be in business, reporting a loss. Where do they get the capital to keep funding the loss?
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