Monday, February 13, 2017

The Singapore dollar will weaken

One loud criticism of the recommendations of the Committee on the Future Economy is - Singapore has become very uncompetitive due to the high cost of doing business.

Businesses are leaving Singapore due to this high cost. Why is the committee not addressing this issue of high business cost? Why is the government still in denial? Don't they know that we are now facing very serious challenges?

I agree with this strong criticism. We are in serious trouble due to the high cost.

But, there is an easy solution. When the Singapore dollar drops in value due to our economic woes, the cost will become lower. This will ease the problem for businesses.

The cost of imported goods will be higher and the cost of living will increase. The ordinary people will have to tighten their belt further. They cannot afford to spend wastefully. They have to become more prudent in their spending. They can take fewer vacations and have to go to nearby countries.

This is the advantage of the free economy. It will adjust to the economic cycles.

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