REACH 363 - How do you feel about the sales of both coffee shops and its possible impact on the tenants? Are you worried that this may have a ripple effect on your own cost of living?
(SK)
20 Jun 2022 (10am - 7pm)
REACH
[10:41 am, 20/06/2022] +REACH: Dear Contributors,
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Megan 😊
[10:46 am, 20/06/2022] +REACH: 📢 Topic 📢
Just this month, two coffee shops in Singapore were reportedly sold to buyers for $40 million and $41.64 million respectively, with the latter hitting record-breaking sale. A firm called G&G (21) lodged a caveat for the Tampines coffee shop, 21 Street Eating House, while another firm called Y848 lodged a caveat for the 24-hour KPT Kopitiam located in Block 848 Yishun Street Yishun. Nicholas Mak of ERA said there was optimism in the market now as crowds in F&B outlets had nearly returned to pre-pandemic levels.
💬 How do you feel about the sales of both coffee shops and its possible impact on the tenants? Are you worried that this may have a ripple effect on your own cost of living?
Since the new operator took over the Tampines coffee shop in April, tenants have seen a surge in the rent cost. Some tenants have since thought about terminating agreements; with one mentioning that rent has doubled to $12k thus she had to raise prices by between 20 to 50 cents each and worries that she is unable to pay her workers. Another tenant shared that while she is unable to raise prices, she had to let go of two of her workers. For the coffee shop in Yishun, tenants are still unsure if rents would increase once their new operator takes over.
Hutton Asia’s Lee Sze Teck said that coffees shops are a “resilient asset class” as people do need to eat and coffee shops are affordable options compared to restaurants. However, the issue of rising cost of living which includes food, transport and utilities continue to be a growing concern for low-income families.
In April, the Monetary Authority of Singapore said that the surge in global energy and agricultural commodity prices will raise domestic inflation for fuel, electricity and gas and non-cooked food, which in turn will raise prices for transport and food services over time. Many residents voiced their concerns during last Saturday’s Sengkang quarterly Town Hall session on the rising cost of living, with one participant suggesting for GST increases to be tiered across different classes of goods.
👉🏼 https://www.straitstimes.com/business/property/coffee-shop-in-yishun-sold-for-40-million-second-of-such-sale-this-year
👉🏼 https://www.straitstimes.com/business/property/tampines-coffee-shop-sold-for-record-4168m-tenants-say-rent-doubled
👉🏼 https://www.straitstimes.com/singapore/rising-cost-of-food-utilities-transport-a-growing-concern-for-low-income-families
👉🏼 https://www.straitstimes.com/singapore/community/rising-costs-of-living-ahead-of-gst-increase-among-issues-raised-at-sengkang-town-hall-session
-----
[10:55 am, 20/06/2022] +Frankie Wee: Singapore welcome foreigner investment there is no rule HDB coffeeshop or restaurant private buyer.
My answar is yes cost of living it will affected sold transaction high at all times. Whoever can sell upper level (example Woodlands and Paris Ris sold $1m HDB)
[11:10 am, 20/06/2022] +Rama: How much rental can hawkers pay to get customers to accept on reasonable in f and b purchases!?
[11:59 am, 20/06/2022] +REACH: Dear Contributors
We’d love to hear more from you on today's topic 😊
We have had good feedback and hope that we can keep the discussion robust and active!
Megan 😊
[0:01 pm, 20/06/2022] +Caleb: Yes, extremely -- Are you worried that this may have a ripple effect on your own cost of living?
[0:13 pm, 20/06/2022] +Andrew Ang: The current situation should highlight that retailers and F&B operators have so little ability to retain earnings that they cannot deal with a crisis. It is time for policymakers to ask themselves, is this the business condition they want to have in Singapore?
[0:15 pm, 20/06/2022] +Andrew Ang: What's at stake is not just businesses and jobs but Singapore's reputation on the retail front.
[0:20 pm, 20/06/2022] +Andrew Ang: For the ripple effect on our own cost of living, we would like to suggest that reducing GSY by 2-3% for 2-3 years would help. To help offset the revenue loss, the government could increase the marginal tax rate in the highest income bracket.
[0:22 pm, 20/06/2022] +Uncle Law: How much coffeeshop sold is non of our biz. If coffeeshop priced their food too high, they will lose their customers
[0:22 pm, 20/06/2022] +Andrew Ang: High inflation can indirectly lead to high interest rates, and those who have loans should look at the interest rates or refinancing options more carefully. We would appreciate government subsidies to help with costs.
[0:22 pm, 20/06/2022] +Uncle Law: I don't see why we need to discuss on this
[0:23 pm, 20/06/2022] +Uncle Law: It's a biz decision after all
[0:24 pm, 20/06/2022] +Uncle Law: If rentals is going to high, nobody will rent. Only the landlord will suffer
[0:26 pm, 20/06/2022] +Frankie Wee: I think the government will discuss to all Singapore wage must increase equal to inflation.
[0:26 pm, 20/06/2022] +KSFoong: On one hand government to allow free play of legitimate business transactions, on the hand, they need to have measures to mitigate free market price force. How to ensure affordable price for ordinary singaporeans’ daily living. Potential out of reach or obscene hawker food price is a big concerns to all ordinary singaporeans.
[0:28 pm, 20/06/2022] +Frankie Wee: https://www.businesstimes.com.sg/government-economy/bigger-pay-hikes-in-2022-as-employers-price-in-higher-cost-of-living-hr-firms
[0:29 pm, 20/06/2022] +Ken Loh: 😅
[0:30 pm, 20/06/2022] +Ken Loh: If they were to increase lol… lucky to even get increment 🥹
[0:34 pm, 20/06/2022] +Timothy Low: Coffeeshops are privatised, so the pricing is all based on supply and demand. So long Government don't do the same for hawker centres, I think it won't affect our cost of living that much, as we will still have hawker centres to go to if the price in coffee shops is too high.
[0:35 pm, 20/06/2022] +Caleb: Bishan got no hawker center...
[0:35 pm, 20/06/2022] +Rama: https://news.nestia.com/detail_share/9146082?media_type=1#
[0:36 pm, 20/06/2022] +Rama: So, sue and recover expenses!?
[0:49 pm, 20/06/2022] +Guillermo Cabeza: Agreed.
[0:52 pm, 20/06/2022] +Uncle Law: Thanks
[0:53 pm, 20/06/2022] +Uncle Law: Perhaps if there is no critical topics, we shouldn't just open the chatgrp to discuss such topic like today.
[0:53 pm, 20/06/2022] +Uncle Law: There are more bread and butter issues
[0:54 pm, 20/06/2022] +Uncle Law: Thanks
[1:03 pm, 20/06/2022] +Uncle Law: I'm just being objective, in case anyone got offended
[1:18 pm, 20/06/2022] +Desmond: Coffee shop should be regulated just like most NEA hawker center.
Through bidding instead of what HDB said, “private agreements”
Although some hawker center are sub out as “social enterprise” I beg to differs if this model works for the benefit of citizens
[1:18 pm, 20/06/2022] ☸️ Danny 心:
1. Actually, notice that hot money do flow into Singapore.
Rich foreigners, Home Office have pour into Singapore as investors.
2. This spell good for Singapore - as foreign investors do bring in business and jobs for Singapore - which will help to boost our local Economy.
3. But on the flip side, such hot money will also drive up property prices - as rich foreign investors pay huge price to secure houses, office buildings, and other properties.
Tenants who rent from such buildings will have to pay a big rental fees - and thus drive up business cost that will have to pass on to consumers to ensure its business remain viable.
Hence this will further fuel the inflation - on top of imported inflation we are now facing due to pandemic, war, global climate - that cause disrupted supply chain, poor food harvest etc.
4. Though property buyers are private transaction - with Singapore a small country with limited land spaces - Government invisible hands to prevent exorbitant prices changing hands to prevent a property bubble (like the HK exorbitant property prices that are price way beyond what the population can afford) - that lead to runaway inflation --- is always a needed policies.
Anti-speculative measures to tame propety prices, oligopolistic and monopolistic purchase of properties - are always on the radar of the Government.
5. Hence it is not too far fetch that the topic of today is raised - because it is an alarm bell - where many properties prices are hitting the roof - in the midst of high food and energy inflation.
It is certainly a property bubble forming.
[1:25 pm, 20/06/2022] +SL: The transaction is @ caveat to purchase. A typical caveat last for 5 years (60 months) is this S&P going to complete? The newspaper mentioned is changed hand. But legally it is still @ caveat stage right?
[1:27 pm, 20/06/2022] +SL: I confused whether the S&P completed or intention to tell potential buyer that G&G have priority to purchase the “24-hour KPT Kopitiam located in Block 848 Yishun Street 81”?
[1:40 pm, 20/06/2022] ☸️ Danny 心:
1. Property bubble has a tremendous impact of bringing down the Economy - in one big swop - because property is a big ticket item - that have tremendous impact on banks, business and household expenses.
2. If runaway property prices are not tame - it will bring down the Economy in big swop.
Even Big and Rich Economy like US and China - cannot sustain a property bubble burst.
US Economy was brought down by property bubble burst - the sub-prime crisis - that cause a domino effect on the World Economy - leading to a Global Financial meltdown.
China similarly face a risk of a property bubble burst - when big property giant like Evergrande, and other property developers take a big hit - when China government squeeze liquidity to prevent a property bubble burst - that will crash the China Economy.
3. Similarly, Singapore recent red hot property deal - is another alarm bell for us - that our Government should carefully track - as recession due to heighten food and energy inflation is looming.
A property bubble burst - will crash it in double quick time.
[1:47 pm, 20/06/2022] +65 9226 2477: 3, 4, 5 shows the urgent need to closely monitor the situation and avert an "out of control" impact to the population.
[1:48 pm, 20/06/2022] ☸️ Danny 心:
"S'pore resident buys entire floor of Suntec City Tower 2 for $38.8 million"
https://www.straitstimes.com/business/property/spore-resident-buys-entire-floor-of-suntec-city-tower-2-for-388-million#:~:text=S%27pore%20resident%20buys%20entire%20floor%20of%20Suntec%20City%20Tower%202%20for%20%2438.8%20million
[1:49 pm, 20/06/2022] ☸️ Danny 心:
"60% of global CEOs expect a recession by 2023: Conference Board"
https://sg.yahoo.com/finance/video/60-global-ceos-expect-recession-193440193.html#:~:text=The%20Independent-,60%25%20of%20global%20CEOs%20expect%20a%20recession%20by%202023%3A%20Conference%20Board,-Sat%2C%2018%20June
[1:50 pm, 20/06/2022] ☸️ Danny 心:
"Identity of buyer behind record $41.6m Tampines coffee shop sale revealed".
Hefty rise in rents for stalls.
https://www.asiaone.com/money/identity-buyer-behind-record-416m-tampines-coffee-shop-sale-revealed#:~:text=AND%20BEVERAGE%20SECTOR-,Identity%20of%20buyer%20behind%20record%20%2441.6m%20Tampines%20coffee%20shop%20sale%20revealed,-JUNE%2016%2C%202022
[1:50 pm, 20/06/2022] ☸️ Danny 心:
"Singapore households, businesses to brace for interest rate ‘shock’; Fed hike to slow Asean recovery: Economists"
https://www.businesstimes.com.sg/government-economy/singapore-households-businesses-to-brace-for-interest-rate-shock-fed-hike-to-slow#:~:text=Singapore%20households%2C%20businesses%20to%20brace%20for%20interest%20rate%20%E2%80%98shock%E2%80%99%3B%20Fed%20hike%20to%20slow%20Asean%20recovery%3A%20Economists
[1:51 pm, 20/06/2022] ☸️ Danny 心:
All these are alarm bells for a looming recession on the horizon.
[1:51 pm, 20/06/2022] +SL: I think the topic might be relevant, a fixed assest + current assets of 40 bil will be depriciared along a period of x years. The amount will be reflected in the rental to stall, stall rental is part of the cooked food price competition.
[1:52 pm, 20/06/2022] +SL: It is also a good discussion on the root cause on why that particular shop attracted such a high price. Maybe URA or SLA can lookinto the area and developed it into a star and prime location that will benefit all
[1:54 pm, 20/06/2022] +SL: There must be something underlying amenities or residential or commercial or industrial that attract such a high offer to purchase.
[1:55 pm, 20/06/2022] ☸️ Danny 心:
"Yellen says US recession not ‘inevitable’ but expects ‘economy to slow’"
https://sg.yahoo.com/news/yellen-says-us-recession-not-154703765.html#:~:text=The%20Independent-,Yellen%20says%20US%20recession%20not%20%E2%80%98inevitable%E2%80%99%20but%20expects%20%E2%80%98economy%20to%20slow%E2%80%99,-Edward%20Helmore
[1:55 pm, 20/06/2022] +Smiley face: 20 June, 2022
To: Our Distinguished Ministers and All Honorable Members
"Owners or Tenants or Consumers Benefits?"
"yesterday's not is tomorrow's hot?"
- - annoymous
The Hot Coffee Shops:
With two price breaking records of coffee shop changing hands at $40 million and more to come is a signal of an upward shift in equilibrium of supply and demand?
Each of this transacted multi-million dollars will perhaps redefine how the coffee shop business model evolves to a new way of using spaces and redesign to expand more tenants and increased sitting capacity outwardly beyond the five foot way area.
Who will be the beneficiary?
Fact is, these two transacted coffee shops have 74 years left of a 99 years lease. We can also assume the flats above these coffee shops are running the same leasehold.
So why the new buyers of the coffee shops willing to pay $40.0 million? Perhaps, the underlying advantage and the prospect is SERS. Under the SERS scheme (1995), flats that are closer to the 40th year (of a 99 yr lease) will be eligible for SERS.
Assuming, these two coffee shop owners will operate into the 40th year, the SERS happens, will HDB allocate similar eatery space (can be 20% smaller space allocated) to these two existing owners?
Will HDB invites an open tender to the public to retender an eatery space or a retail space? Or these existing owners of eatery or retail units will be given the priority and rights to move into the new premises under the SERS scheme?
If so, perhaps, HDB will need these commercial owners to pay (differ from flat owners) a sum of money to secure their allotments to the new place of operations? Are these new operators (investors) thinking there will be a hidden advantage comes SERS in 15 years time or shorter waiting time to reap another fresh reset, this case a new environment with a fresh 99 years to operate and a benefit that will be a higher valuation for all eatery or retail owners?
Are all the above 'what ifs' possible or it has already be known and factored into by policymakers?
How's the maths and metrics will be?
New owner paid $40.0 million with 75 years remaining to operate.
The number of stores will be reconfigured and increased upwards of 25% to 30% from the existing layout. The total sitting capacity will need to be increased say 15%.
The annual rental collectable will be $1.0 million (GST applicable) as a baseline for analysis.
Upon reaching the 40th year lease period, total revenue collected will be $15.0 million or more?
Who will benefits and who will pay for it? There is no direct answers to the above scenarios. Two things, that is cost of livings will escalate and the proven theory of time value of money.
It is not about "you wins and we lost", more importantly, it has to be liveable and sustainable for all stakeholders - owners, tenants, consumers, policymakers!
Afterwords:
In a real world economics scenario, all supplies and demands converge to determine a price to trade and or to exchange. It is a dynamic situation, evolving and never a perfectly fit of supply equals demand.
What is inflation?
When a consumer buys (consumes) a product or service, the price compared to yesterday was higher as at today! The percentage of increase above a certain price level of tolerance will be classified as inflation.
Scenario:
One chicken was $8.00 last 30 days, today cost $10.00. This is a 20% rise in chicken price.
The GST collected at $8.00 @ 7% was $0.56.
The GST collected at $10.00 @ 7%
will be $0.70.
If we compared the before and after inflation, the GST collected in terms of percentage increase will be 20%?
Is inflation causing an unintended increase in GST collectables or is it a naive, an unqualified and perhaps a simple minded comparative model?
What if there is an increased in revenue collected, can this small advantage be reallocated to the daily basket of necessities to reduce and stabilise these essential goods abd or services to a new price level?
- - in progress - -
[1:57 pm, 20/06/2022] +SL: Based on the historial high selling price of properties, a model can be developed for town planning projection that may win us a potential global economy modeling award
[1:58 pm, 20/06/2022] +SL: It was expected in modeling that they would run into inflation that may affect their economy
[2:01 pm, 20/06/2022] +Rama: Not necessarily that NEA hawkers and wet market prices are reasonable even though controlled
[2:02 pm, 20/06/2022] +SL: A lower growth rate might not be good but sustainable growth might be better.
[2:03 pm, 20/06/2022] +Rama: Just heard staff at a GLC talking about coming possibly recession
[2:04 pm, 20/06/2022] ☸️ Danny 心:
In the current global context, a slower growth is better than a recession.
If we are able to attain a sustainable growth - then it will be better for us.
[2:07 pm, 20/06/2022] ☸️ Danny 心:
All economic indicators are pointing towards a recession.
High property price is not sustainable and will crash business, economy and jobs - certainly an alarm bell.
A recipe of "property bubble" ready to burst with the backdrop of high interest rate.
If business borrow to rent the stall or office spaces - economy will crash - as many loans will default.
Many bankruptcy will arise, run on banks and all hell break lose.
[2:08 pm, 20/06/2022] ☸️ Danny 心:
Hence if we can avert a recession and secure a slow growth - it will be a bonus for us.
If we can sustain a sustainable growth - then it is a feather on our cap
[2:09 pm, 20/06/2022] +Rama: Hope no digging in the piggy bank.
[2:09 pm, 20/06/2022] +Smiley face: https://www.rt.com/business/557361-us-oil-reserves-running-low/
[2:10 pm, 20/06/2022] ☸️ Danny 心:
That's why our government need to be very prudent and watch out for sign if trouble - and act when need be.
[2:10 pm, 20/06/2022] +Smiley face: https://www.businessinsider.in/stock-market/news/wells-fargo-says-the-us-will-fall-into-recession-after-the-fed-delivers-its-biggest-rate-hike-since-1994/articleshow/92253949.cms
[2:10 pm, 20/06/2022] +Rama: And Saudi Arabia is not too friendly with the Biden administration to help!?
[2:10 pm, 20/06/2022] +Rama: Most Americans are expecting a recession
[2:13 pm, 20/06/2022] +Smiley face: One thing, the US has stockpiled 10 million barrel of oil in Japan.
Perhaps a military strategy of ample supply in case of a Prolonged confrontation that may lead into a hot conflict with others?
So, Iran is working with Russia and India to route supplies of goods - "both ways" trading Rupees!
So why rupees at the medium of trades?
[2:14 pm, 20/06/2022] +Smiley face: India is buying SOUR CRUDE OIL from the Russians...
The middle east is SWEET CRUDE OIL.
sour vs sweet, is the quality, sulphur and impurities in it.
Price wise, you should know it.
[2:15 pm, 20/06/2022] +SL: The economy is a highly complex topic. Economic activity correlated with a lot of other factors. I think we all have been aware of this relationship since the end Feb 2022. There is two economic power having upcoming elections by 2022. Both of them have their group of stakeholders to praise.
Economic activities might no longer be affected by demand and supply and economic scale at the international trade level but are subject to widen factors and new orders. The definition of recession @ the current /future may be different compared to the old days.
[2:16 pm, 20/06/2022] ☸️ Danny 心:
1. I will cite an examples how coffeshop prices can be tame.
2. My areas have 6 big coffeshops and many more smaller F&B shops - though there are no hawker center around.
3. The competitive landscapes help to prevent coffeshop owners from buying coffeeshop at exobitant prices - because stall owners cannot afford to pay high rent prices - and thus have to charge high food prices to consumers.
4. With so many competitors, coffeshop owners are careful not charge too high a rental so that stall owners can pay affordable rent and charge affordable food prices.
5. I have change my favourite food stall 3 times - looking for cheaper and good food - by exploring the different coffeeshops - and i manage to find good food with a cheaper price - when some of my regualr stall increase their food prices.
6. So for some newer estates or estate that have only 1 or 2 coffeeshops - without a competitive landscape - high coffeeshop rental and higher food price will hit the consumers.
Then hawker centre will be a price stabiliser. Else Government may have to find places to gazette more coffeeshops in that estate to tame the rent and hence the food prices.
[2:16 pm, 20/06/2022] +Smiley face: Weaken currency will succumb to own domestic inflation, a natural way.... Unavoidable!
[2:25 pm, 20/06/2022] +SL: The current investment trend is for 2035 to go green. The carbon generates industry is not a priority project for bankers. Hugh infrastructure investment in oil drilling will incur a significant loss to the industry in the long run. That is the exact reason why shelf drillers do not increase their productivity as well. Opec + in a few weeks ago concluded to increase the productivity. Saudi already told China they would cut the oil to China and channel the barrel to the west part of the world as China got an alternative sources of oil. Suez canal already lower the fees price of tankers passed thru canal from Jul onwards after Biden visit Arab.
[2:27 pm, 20/06/2022] +Smiley face: Paul Volcker then faced with high inflation. Today, Powell and his team is fire fighting hot inflation, hot war, covid and supplies shock. This round, a few more big variables for the Fed to handle?
How to begin, to tighten money supply, fiscal budget (every interest rate increases will expand the budget), trade deficits, balancing this increase cost of borrowings to tame inflation (from 8% to 4%) towards many soft-hard outcomes?
[2:29 pm, 20/06/2022] +Smiley face: 50 nations have adjusted their interest rates from 25 points onward.
The Swiss done with 25 point.
[2:31 pm, 20/06/2022] +Smiley face: Scenario:
One chicken was $8.00 last 30 days, today cost $10.00. This is a 20% rise in chicken price.
The GST collected at $8.00 @ 7% was $0.56.
The GST collected at $10.00 @ 7%
will be $0.70.
If we compared the before and after inflation, the GST collected in terms of percentage increase will be 20%?
Is inflation causing an unintended increase in GST collectables or is it a naive, an unqualified and perhaps a simple minded comparative model?
What if there is an increased in revenue collected, can this small advantage be reallocated to the daily basket of necessities to reduce and stabilise these essential goods and or services to a new price level?
[2:34 pm, 20/06/2022] +SL: Typically, a country's local currency weakens due to an outflow of foreign money after the local currency is sold in exchange for Hard currency. In the current context, it is USD.
Inflation and currency etc are manageable depending on the monetary and fiscal policy effectiveness for a period of time before the cutoff in managing the issue.
[2:36 pm, 20/06/2022] +Smiley face: "how to deflate with least noise?"
- - annoymous
The world's top central bankers are thinking hard between raising interest rates and weakening own currency? A razor thin exercise, cannot go wrong ways or it will be the starts of recession and more pain to come?
[2:40 pm, 20/06/2022] +Smiley face: In the 1990s, the Asian currency crisis.. Though may not be parallel but certain fear and risk factors do exist...this round is uncharted water because in 2008 onwards there are abundant of monetary stimulus pumped into the global developed economies.
Today, how will central bankers "collect back" these excess monies in the existing globalised trading platform?
Trillions Dollars exposures!
[2:40 pm, 20/06/2022] +SL: I feel it depends on their central bank objective and what they want to achieve by increasing and deceased their interest rate.
[2:43 pm, 20/06/2022] +SL: Collect back means reducing the central can't balance sheet?
[2:43 pm, 20/06/2022] +SL: Central bank*
[2:44 pm, 20/06/2022] +SL: If yes, Fed started quantitative tightening months ago…
[2:48 pm, 20/06/2022] +Smiley face: How to 'soft land' these high flying assets class or goods or services?
Perhaps the x and y axis of the supply & demand equilibrium will shift upwards. A new equilibrium, a reset price all goods and serviced!
Simply put it, a new (higher) prices across the globalised world. To think yesterday's prices will return will yield least hope!
[2:49 pm, 20/06/2022] ☸️ Danny 心:
Next I will want to talk about our fiscal policy and tax structure.
1. Singapore need various type of tax structure to support our fiscal policy.
2. We cannot rely on 1 type of tax structure because tax is a means to encourage or discourage behaviour that contribute to our Economy and Finacial Health - to support the running of our Country, Social Spendings and the Economy.
3. So it is always a populist idea - to always want to tax the very wealthy - to fund the poor ---- but will be suicidal if Singapore do so.
a. Reasons being, attracting wealthy individuals, foreign investment and keep wealth in our shores - so that these wealth will help to create business, investment, jobs in our Economy so that Singaporeans can prosper - is a very difficult jobs and highly competitive globally.
b. We have to compete with many global hubs to attract and keep such wealthy investors and individuals,
UAE, Dubai, Australia and other foreign hubs are competitng fiercely with Singapore for such wealthy investors and funds - while HK and Shanghai are losing them due to zero covid strategy and other political factors.
c. By keep targeting and milking these wealthy individual by imposing more and more wealth tax as suggested by the oppositons - will be a sure way to trigger a capital outflow - that we can ill afford.
4. Hence we need to diversify our tax structure and ensure our tax revenue are broad base.
5. Increasing GST is not a popular tax policy because it affect the entire strata of the population - but it is a sound and necessary evil - with the backdrop of running inflation.
a. The tax revenue is contributed by every population that spends - hence it is a shared responsibility to contribute to our National Finance - needed to keep our Country, Economy and Social Spendings running.
A fair tax instrument.
b. It is not unduly putting the entire burden on one small group of individual - just because they are rich.
The rich has already been paying a large share of the tax such as :-
i. Higher income tax
ii. Corporate tax
iii. Higher GST - because they usually buy luxury goods and big ticket items - and hence they pay a big proportion of the GST - and in fact a big contributor to the GST tax.
iii. Property tax, stamp duty etc.
iv. COE, ARF, road tax etc.
etc.
And the most important consideration is that, this wealthy individual can transfer their wealth to other tax friendly Countries such as Australia with no inheritance tax or other hubs that have low wealth tax.
6. A better strategy is to continue with the GST tax increase as planned for 2003 and 2004 - but give higher GST tax rebate to lower, and middle income family and individuals - if recession strike or inflation go too high up.
7. This will ensure our diversify broadbase tax structure remain intact --- to ensure our fiscal policy are prudent, continue to finance our Country, Economy, Social spending wisely and accumulate our Sovereign Wealth - and ensure our National Finance - are intact - to prevent being depleted away by wrong financial populist policy.
8. When the current triple whammy crisis of pandemic, war and global climate tie over - Government don't need to keep meddling or roll back the tax structure - but just remove or pen down the tax relief.
[2:49 pm, 20/06/2022] +Smiley face: Too late or perhaps too little done, otherwise this inflation monster would not be bloated?
[2:52 pm, 20/06/2022] +Caleb: Maybe with the cost of living going up, gst don't even need to increase?
As more money has been collected...
[2:53 pm, 20/06/2022] +Smiley face: An urgent need to stabilise prices, that's the Fed led big job.
All nations meantime will fight it out, "ownself check ownself".
EXAMPLE, every 100 points jumped, the US budget will balloon to addition of more than a trillion dollars. Such increase will be met with huge unhappiness among its citizens... Goes on tonother things.
[2:53 pm, 20/06/2022] +SL: Inflation stated in 2021, if I m not wrong, due to the ease of the pain of covid in the USA. It was fuel again in 2nd half of last year and accelerated with the Ukraine war. As you may be aware, increasing the rate last year may crash the NYSE.
[2:55 pm, 20/06/2022] +Smiley face: If you benchmark the NYSE, Dow, Nasdaq so on,
Window dressings happened to sustain stock prices, till today, is in play, especially strategic stocks.
[2:55 pm, 20/06/2022] ☸️ Danny 心: https://www.visualcapitalist.com/migration-of-millionaires-worldwide-2022/
MONEYMapping the Migration of the World’s Millionaires.
[2:56 pm, 20/06/2022] +Smiley face: Intra day or intra 4 days, about 4% yield...
Fridays tend to be not a TGIF for investors, that weekends fear factors!
[2:56 pm, 20/06/2022] +SL: There was an appointment issue to the key role last year, which semi paradise the traditional system in Feb.
[2:56 pm, 20/06/2022] +Smiley face: Watch Europe and ECB, a weak spot
[2:56 pm, 20/06/2022] +SL: Fed
[2:57 pm, 20/06/2022] +Smiley face: Fed never dies, humans do...
Remember what's the rules of 'monopoly' game?
[2:57 pm, 20/06/2022] ☸️ Danny 心:
Rich individual and foreign investors don't by default come to Singapore.
They go to many other countries that are tax friendly.
Opposition MPs keep harping on tax the wealthy will stop these people from coming in and drive rich individuals out of Singapore.
Rich individuals can do a few clicks on the computer and millions and billions will be transferred out within a few minutes.
[2:58 pm, 20/06/2022] +SL: You means short the market for 4% gain?
[3:00 pm, 20/06/2022] +Smiley face: Hi Danny,
Csn say so, MAS has strict compliance on the origin of incoming funds.
Once these foreign funds landed, it will be considered legitimate source of funds.
A strict policing!
"Once upon a time, Ah Chen used a foreign passport to enter a country and then...?"
- - annoymous
[3:01 pm, 20/06/2022] +SL: Not sure about this.. Maybe need to observe a more extended period of time.
[3:01 pm, 20/06/2022] ☸️ Danny 心:
We want legitimate funds and not a place for money laundering.
MAS will enforce it
[3:02 pm, 20/06/2022] +Smiley face: Long stock, you have to BENCHMARK the trends for say 3 months, you will see gold!
It doesn't matter if Putin drop a boob. It will be even better if he drops many bigger bombs at one go... How you see it?
[3:02 pm, 20/06/2022] +SL: It looks like the impact of weaponized financial tools was not considered.
[3:03 pm, 20/06/2022] +Smiley face: Yes, MAS is very strict!
There will always be a few smart Alex's fly under the radar! Just a few perhaps!
[3:04 pm, 20/06/2022] +Smiley face: Hi SL,
The worse has yet to showcase to the world...
Thats what many would usually call it, SURPRISES!
[3:05 pm, 20/06/2022] +Smiley face: Watch Europe,
From there it will affects Asia...
Euro Asia!
[3:06 pm, 20/06/2022] +SL: Not sure about long, with three months on average. Monitoring and reacting may be a better choice for investors to manage their own risk. Don't know about Putin's plan as the newspaper did not report it. Yesterday France voters seemed like not happy with France's inflation rate.
[3:07 pm, 20/06/2022] +Smiley face: Japan is a strategic potential hot war area... Japan, Korea then Taiwan.
Japan is holding massive weaponry and oil, standing by..
If one wishes to neutralise, which nation will be its first choice to X?
[3:09 pm, 20/06/2022] +Smiley face: Should interest rates goes to 10%.
Pls put your cash into the reliable banks.
Why fight and risk losing?
CASH IS BECOMING THE KING?
[3:09 pm, 20/06/2022] ☸️ Danny 心:
Control without invasion: Other actions China could take against Taiwan. https://sg.yahoo.com/news/control-without-invasion-other-actions-035926093.html
[3:09 pm, 20/06/2022] ☸️ Danny 心:
Pen is mightier than gun.
[3:10 pm, 20/06/2022] +SL: I believe the world's central bank governors closely monitor the situation, and there are many fiscal and monetary tools in their beg. They can solve the issue in the long run.
[3:12 pm, 20/06/2022] +SL: Sorry, don't understand
[3:14 pm, 20/06/2022] +Smiley face: Coming back to the coffee shop issue.
What if within 3 years, there is a change of ownership and the transacted price went up, appreciated compared to what was 3 years ago?
Will policymakers impose a CAPITAL GAIN tax on the SELLER?
THIS TAX REGIME IS TO DISCOURAGE speculative acts and sane time to STABILISE CORE PRICES, this case coffee shop or retail shop within the HDB rulings!
[3:16 pm, 20/06/2022] +Smiley face: Will 5 years ruling be too much?
[3:18 pm, 20/06/2022] +Smiley face: Let coffee shops of tomorrows be of a greater services to community and the prices be affordable too!
It doesn't matter if inflation stay, importantly, we need true operators/investors not those greedy SPECULATORS OR IN HOPE TO REAP FUTURE SERS BENEFITS!
Is it too much to ask from these owners?
[4:09 pm, 20/06/2022] +Smiley face: Pls ask Türkiye!
[4:14 pm, 20/06/2022] ☸️ Danny 心:
Turkey will relent.
[4:20 pm, 20/06/2022] +Smiley face: Big implications, black sea, China, Russia alliance and the Middle East OPEC...
How about Israel follows by Iran, Yemen is presently 'out of the picture '...
[4:26 pm, 20/06/2022] +Frankie Wee: I don’t want see them suffer from war. God create earth is peace.
[4:39 pm, 20/06/2022] +Rama: Mankind selfishness and cannot think for the common good
[4:40 pm, 20/06/2022] +Smiley face: Hi Mr Rama,
Correct!
Self interest, with it individuals or nations?
[4:40 pm, 20/06/2022] +Rama: Turkey just recently said Sweden and Finland can't join NATO due to their supposedly support for kurdish rebels
[4:41 pm, 20/06/2022] +Smiley face: Turks are buddy to China+Russia
[4:41 pm, 20/06/2022] +Rama: Both individuals and sovereign government
[4:41 pm, 20/06/2022] +Rama: Yes
[4:41 pm, 20/06/2022] +Smiley face: Humanity?
[4:41 pm, 20/06/2022] +Rama: Definitely
[4:42 pm, 20/06/2022] +Smiley face: Then perhaps embedded in human DNA?
[4:42 pm, 20/06/2022] +Rama: Correct
[4:42 pm, 20/06/2022] +Smiley face: Turks is the gate keeper in out of the black sea?
[4:43 pm, 20/06/2022] +Rama: So, I wonder how long can our government hold out on the international stage by towing the middle line with growing self centered issues pressing on all sides on us!?
[4:44 pm, 20/06/2022] +Rama: Military leverage
[4:44 pm, 20/06/2022] +Smiley face: https://www.usnews.com/news/business/articles/2022-03-18/turkey-builds-massive-bridge-linking-europe-and-asia
[4:45 pm, 20/06/2022] +Rama: Economic life line to hedge against uncertainty
[4:45 pm, 20/06/2022] +Smiley face: https://www.voanews.com/a/6613195.html
[4:45 pm, 20/06/2022] +Smiley face: National self interest, is it understandable or otherwise?
[4:46 pm, 20/06/2022] +Rama: Partioning the world
[4:46 pm, 20/06/2022] +Ken Loh: Protect own kind… for the greater good then there will never be war. 🙃
[4:46 pm, 20/06/2022] +Rama: Both
[4:46 pm, 20/06/2022] +Rama: Not necessarily
[4:46 pm, 20/06/2022] +Ken Loh: Thanos? 🤣
[4:47 pm, 20/06/2022] +Rama: Politics is a tricky business
[4:47 pm, 20/06/2022] +Ken Loh: For the greater good destroy half? 🤣🤣🤣
[4:47 pm, 20/06/2022] +Rama: To monopolise and intimate the weak
[4:47 pm, 20/06/2022] +Smiley face: Hi Ken
"protects that political capital or it will...!"
[4:48 pm, 20/06/2022] +Ken Loh: Always happen… someone is rich cause someone is poor…
Just that we see direct or indirect only… common prosperity is very hard to achieve.
[4:49 pm, 20/06/2022] +Rama: Our government conscious not to go down that road
[4:49 pm, 20/06/2022] +Smiley face: https://swarajyamag.com/world/russia-iran-india-and-a-relatively-quiet-trial-run-of-a-new-trade-corridor
🤫
In trades, two things, route and currency exchange!
[4:50 pm, 20/06/2022] +Ken Loh: This is a very tough answer… I have no answer for that.
How much is enough and how much is too much.
[4:50 pm, 20/06/2022] +REACH: Dear contributors
Please be reminded to keep to the topic that is being discussed.
We have had good feedback from this group, and we hope that we can keep the discussion robust and active!
Megan 😊
[4:50 pm, 20/06/2022] +Smiley face: Arm twisting?
[4:50 pm, 20/06/2022] +Rama: India can be cunning and yet alert. Being a quad member is only a tool.
[4:51 pm, 20/06/2022] +Rama: We will never know for sure
[4:52 pm, 20/06/2022] +Ken Loh: Supply and demand… since the ROI justify for the coffee shop to be sold at that price.
Not cause the coffee shop price go up, due to the shop food are expensive. Chicken and egg. If people don’t buy food from them, they don’t survive close shop. But since people can afford hence they can sell at that price. Even with the hawker with lower cost of rent doing well. Yet people choose to rent at coffee shop due to business reasons.
[4:53 pm, 20/06/2022] +Rama: No one size fits all
[4:53 pm, 20/06/2022] +Ken Loh: Coffee shop sold at a GCB price 😅
Sure is amazing
[4:54 pm, 20/06/2022] +Rama: Another recent one in yishun just went for sgd40M
[4:55 pm, 20/06/2022] +SL: India is smart and not cunning. 🙏
[4:56 pm, 20/06/2022] +Ken Loh: Same same just a nice way to say or nasty way 🤣
[4:57 pm, 20/06/2022] +Ken Loh: Smart and cunning.. (positive or negative way)
[4:57 pm, 20/06/2022] +Ken Loh: Just like fat and plump 🤣
[4:58 pm, 20/06/2022] +SL: Positive better, seeing beautiful in positivity way. Positive bring hope and future 🙏
[4:58 pm, 20/06/2022] +Smiley face: Mr Hoon Jr reveals how his father sold two terrace houses to support him in buying the Bishan coffeeshop in 1990, at a final price of $3.52 million, which was unheard of at the time. “I saw the future. I was lucky because in 1985 I took a course that helped me to see the outlook over the next five, ten years.
[4:58 pm, 20/06/2022] +Smiley face: https://www.ricemedia.co/current-affairs-features-kim-san-leng-hoon-moh-heng/
[4:59 pm, 20/06/2022] +Ken Loh: When rent is higher than a condo… and there is constant demand. Things becomes clear and people just repeat the formulae
[5:00 pm, 20/06/2022] +Ken Loh: No secret that coffee shop rent are higher than market.
[5:00 pm, 20/06/2022] +SL: It depends. If the location only has 1 or 2 coffee shops and no other alternative, the continued increase of price will alter the food consumption behavior of residents/workers within a 3-5 km radius
[5:01 pm, 20/06/2022] +Ken Loh: Hence only for some coffee shop it is worth so much more for same size
[5:03 pm, 20/06/2022] +SL: Yes. Such location is a prime location that may be worth developing further
[5:03 pm, 20/06/2022] +Smiley face: Location, footfalls, size, tenure...
[5:04 pm, 20/06/2022] +Ken Loh: Hence there is a team specialist for this in MacDonalds, Starbucks.
[5:04 pm, 20/06/2022] +Ken Loh: Just that the coffee shop owner is good at it himself
[5:04 pm, 20/06/2022] +Smiley face: 1990 was $3.52 million, today is $40.0 million.
Bishan is an important town too...?
[5:05 pm, 20/06/2022] +Smiley face: Yupp, look out for properties!
[5:54 pm, 20/06/2022] +REACH: Dear Contributors
We want to HEAR MORE from you!
We have had good feedback and hope that we can keep the discussion robust and active!
Megan 😊
[6:08 pm, 20/06/2022] +Smiley face: Unintended increase in value of shop houses, which are finite numbers. Those shop houses that have F&B licenses will be of higher value to those that are non F&B.
The result of this increase in value will be an upward rental adjustments come any future rental contracts due. Exception of any future rental reductions will be a RECESSION in progress!
[6:12 pm, 20/06/2022] +Smiley face: Rental goes up, foods prices go up and portion served may be down-sized too! The total bill from consumers' pocket to pay for these F&B will be fatter too.
[6:13 pm, 20/06/2022] +Frankie Wee: I think it’s a play fair with government when recession hit high inflation at all time. GST need to revise and stable
[6:15 pm, 20/06/2022] +Smiley face: Hi Frankie,
Are you suggesting to defer the 8% GST to say Q4-2023?
Hope is correct, your views...
[6:16 pm, 20/06/2022] ☸️ Danny 心:
Turkey is not a full member of NATO.
In fact turkey try to apply for NATO membership - NATO assessing it's application.
Also turkey is more like political posturing because they are unhappy of their support for Kurdish.
Eventually this will be resolved.
[6:16 pm, 20/06/2022] +Frankie Wee: The world say when recession were hit at high inflation but our economy are not crisis because we have more hire job
[6:17 pm, 20/06/2022] +KL: Sorry where is this piece of news ?
[6:17 pm, 20/06/2022] +Frankie Wee: It’s should be 7.5% due to uncertain pandemic, recession and war
Triple will cost a lot money
[6:17 pm, 20/06/2022] +Frankie Wee: I tell myself 😅
[6:18 pm, 20/06/2022] +KL: Thank you for your clearifaction
[6:18 pm, 20/06/2022] +SL: Turkey (old writing) is member of NATO since 18/2/1952. Turkey is not member of EU but it candidate state.
[6:20 pm, 20/06/2022] +SL: Turkey use article 10 to block Sweden and Finland
[6:21 pm, 20/06/2022] +Frankie Wee: If I were say none of this happen in the world economy I am sure government will say hike 8-9% 2022 early of years.
[6:22 pm, 20/06/2022] +Smiley face: EU and Nato...
Either or or both memberships the best!
Nato was formed after WW2, US led the formation of this strategic military alliance to counter the USSR.
It was hot war into cold War.... Communism vs Capitalism.
Also The Bretton Woods Agreement.
[6:23 pm, 20/06/2022] +Frankie Wee: How about Putin will press bottom nuclear ☢️ who would starts to attack without acknowledgment of agreement with NATO
[6:23 pm, 20/06/2022] +Smiley face: Yupp, 100% consensus to invite new member into the game aka NATO... Aka 'NO ACTION TALK ONLY'
[6:24 pm, 20/06/2022] +SL: 😅
[6:24 pm, 20/06/2022] +Smiley face: Wow! Cancel culture coming...
Tactic small magnitude, perhaps!
Putin needs to live on too....?
[6:25 pm, 20/06/2022] +Smiley face: Is true... Old saying.... No Action Talk Only!
[6:25 pm, 20/06/2022] +Frankie Wee: I heard news Putin got treatment cancer since 2017
[6:26 pm, 20/06/2022] +Smiley face: Luckily Stalin passed on... Otherwise, Ukraine will be done at all cost and lives!
[6:26 pm, 20/06/2022] +SL: There might be rumours saying this org want to replace UN oh..
[6:26 pm, 20/06/2022] ☸️ Danny 心:
Oops make a mistake.
You are right turkey is a full member of NATO but not EU.
I mixed up the 2.
But my assessment that turkey will relent still stand.
[6:27 pm, 20/06/2022] +SL: Once Turks got what they want.
[6:27 pm, 20/06/2022] ☸️ Danny 心:
Yes
[6:28 pm, 20/06/2022] +SL: Can use the EU membership for exchange, I guess
[6:30 pm, 20/06/2022] ☸️ Danny 心:
Maybe but not sure.
EU are very professional and carry out criteria assessment based on merits.
Aspiring members must make the mark to join.
Sweden and Finland make the mark for NATO and EU.
Higher chance they will be accepted if they cross turkey hurdle.
[6:35 pm, 20/06/2022] +SL: Yea, either they settle the Turkey concern on theorist group or NATO need to tell EU the urgency of why Sweden and Finland need to be in NATO and workout a joint solution. Or wait until Erdogan party loss election?
[6:36 pm, 20/06/2022] +REACH: Dear contributors
Please be reminded to keep to the topic that is being discussed.
We have had good feedback from this group, and we hope that we can keep the discussion robust and active!
Megan 😊
[6:36 pm, 20/06/2022] ☸️ Danny 心:
Hahaha.
Let see how things unfold.
But Sweden and Finland will get there.
[6:36 pm, 20/06/2022] +Joseph: Apologies in advance if someone has already mentioned this earlier ....
My take is very simple...
Govt cannot control import prices .. at most, some of that can be offset by a stronger SGD ... but that would have negative impact on our Exporters, hence, not much we can expect here.
Food/Retail prices on the other hand, the Govt has an outsized influence on, since the final consumer/retail price, is a function of raw materials/goods + rental + wages.
If the Govt is serious about bringing prices down for the masses, then PLEASE.... disallow REITs ... and break up the Monopolies/Oligopolies.
Our F&B scene is cornered and controlled by well-funded conglomerates such as Breadtalk, Paradise, Crystal Jade, Tung Lok and P/E Fund owned entities. They bid up commercial rental rates and take up all the choiciest locations/plots. The average sole proprietor has no chance to compete. The higher costs are then easily transferred to consumers because we barely have any other choices! Just as a rising tide lifts all ships, small biz that are lucky enough to be able to survive, will lift prices as well.
REITs benefit only the 1% UHNW. It serves no purpose beyond enriching the Asset Managers and the (Rich) large unit holders. For the average Singaporean, assuming you can invest 100k into REITS yielding 6% p.a., that only works out to $500/mth,.. which does little to relieve rising cost of living, For the UHWN who can invest millions, that translates into a tidy (assuming 1mio investment) 5k/mth. Not too bad considering Singaporean's median income is 4k+. When markets go south, again, the small/retail investors will be hardest hit .. the UHWN rich... not that much. In fact, for many, its the best time to scoop up more assets at fire-sale prices.
When cost of living rises, employees expect pay rises. The unemployed, or lower income hope for some Govt assistance/handouts. This only alleviates the pain for a while,,,,until prices are adjusted higher yet again. Again, wage-price spiral hurts the average citizen most!
So....please, stop making excuses or pretending to care when it seems quite obvious you (the Govt) are not doing anything to stop the ridiculous rise in input costs THAT ARE WITHIN YOUR CONTROL.
If someone like me can see what the problem is,, I can't believe that our Ministries that are staffed (and stuffed full) with scholars can't see it!
[6:37 pm, 20/06/2022] +SL: Opps, out if topic. My bad.
[6:37 pm, 20/06/2022] +KL: Thanks Jospeh :D, i badly impacted as well
[6:39 pm, 20/06/2022] +KL: yesterday topics was a good chance but I was working , my English not great and one thing I can say all policies in SG impacted me badly
[6:43 pm, 20/06/2022] +SL: I think during the time reit was push out, that is the global trend, it encourage investors to purchase the fund that directly own the properties.
[6:45 pm, 20/06/2022] ☸️ Danny 心:
1. I think Singapore may have a good chance to attain slower growth but avert the recession - if things don't deteriorate further.
2. The reaons being, many industry sectors started from a very low base :-
a. Aviation - just recovering from a few flights on cargo and very little passenger flight - now to quite a big pick up.
b. Tourism - signs of foreign tourists coming back and in transit.
c. F&B - from pandemic safe distancing to now almost very little restriction - we also see huge crowd in food court, hawker centre, coffeeshops, restaurants and other eateries.
d. Transport - see many people going back to office and less on working from home.
etc
3. However some sectors see tapering from the peak - eg. eCommerce as people order less from the web as people are going back to work and are going out more often.
4. So based on all these assessment - Singapore can still achieve a lower growth rate - and can manage to avert a recession --- if things don't turn out real bad.
[6:47 pm, 20/06/2022] +Smiley face: Nations that are US based economies would be affected, directly or indirectly or significantly!
[6:47 pm, 20/06/2022] +SL: By nature of REIT, its primary source of operating income is rental. To invite more investors to invest, it needs to continue to achieve the x% that it promised. For retail and food servicing, the rental will transfer to food price by either (increasing the price or cutting the cost by reducing the portion). Not sure is reit invested in a coffee shop. Usually, they own shopping malls
[6:48 pm, 20/06/2022] +Rama: I hope so but believe it will be with great prudence
[6:49 pm, 20/06/2022] ☸️ Danny 心:
We can just make it - if no other crisis emerge.
[6:49 pm, 20/06/2022] +Rama: The unexpected x economic crisis
[6:50 pm, 20/06/2022] +Smiley face: " Show me the incentive and I will show you the outcome."
- - Charlie Munger
[6:50 pm, 20/06/2022] +REACH: Dear Contributors,
⏰ We will be closing the chat in 10 minutes ⏰
Thank you very much for being part of our WhatsApp chat and participating actively.
Goodnight!
Megan 😊
[6:50 pm, 20/06/2022] +KL: When the gov do expansion policy they don't know this will happen ?
[6:51 pm, 20/06/2022] +SL: Workers' salaries are constant, 11/12 months Purchading power remained after deducted payment to car loan and housing loan and other fixed expenses. What ever left will be use for variable expenses that in price equation: quantity go down with price increased
[6:51 pm, 20/06/2022] +Kevin: Good night Megan
[6:51 pm, 20/06/2022] +Rama: Best contingency can still be derailed
[6:51 pm, 20/06/2022] +KL: I agree but a lot of money no need to spend
[6:51 pm, 20/06/2022] +SL: First few rd REIT report ROI are marvelous
[6:52 pm, 20/06/2022] +Smiley face: Mr Rama, to piggyback to your view...
Govt perhaps has scenarios in mind, the degree of severities and magnitudes, this coming perfect economics storm!
[6:52 pm, 20/06/2022] +Joseph: There are more than enough products to satisfy the needs of speculators no? How about ring fencing and leaving out areas that have an outsized impact on the average citizen when things go wrong?
[6:52 pm, 20/06/2022] +Rama: Agree
[6:53 pm, 20/06/2022] +Smiley face: Speculate, hopefully don't burn....?
[6:54 pm, 20/06/2022] +SL: A good question to ask on the product promoter of REiT🤔
[6:54 pm, 20/06/2022] +Smiley face: Like asking snake oil salesmen... Oops no offence,...
[6:55 pm, 20/06/2022] +Smiley face: Cash is king, sooner...
[6:55 pm, 20/06/2022] +SL: This quantitative tightening is just the beginning, and the impact is yet to be realized. It may take 23-24 to see the real impact
[6:56 pm, 20/06/2022] +SL: 😅
[6:56 pm, 20/06/2022] +Joseph: When cost of living rise too quickly ,, like what we are seeing now.. the majority of salaried workers will hope/ask for a pay rise. Those who are rejected, become demoralised. I don't need to go into details about how demoralised workers/desperation can do to people. For those who are lucky enough to get an increment, the $ goes straight into paying for the higher prices of everything...
Biz owners raise prices because of the higher rental costs and WAGES,
Wage-Price spiral ..... it never ends well
[6:57 pm, 20/06/2022] +Smiley face: Any pay rise will EQUALISE all inflations....
[6:57 pm, 20/06/2022] +Smiley face: That's why price stability matters most
[6:58 pm, 20/06/2022] +SL: A vicious cycle may lead to quantity fall and business will kick start cost saving.
[6:58 pm, 20/06/2022] +Smiley face: Soft landing for folks.... See it this way.. No real wage benefit!
[6:59 pm, 20/06/2022] +SL: Negative, did not project soft landing
[6:59 pm, 20/06/2022] +Smiley face: Deflation process...
How you reduce inflation?
[6:59 pm, 20/06/2022] +SL: Total assets reduction across all area
[6:59 pm, 20/06/2022] +Smiley face: 20 June, 2022
To: Our Distinguished Ministers and All Honorable Members
"Owners or Tenants or Consumers Benefits?"
"yesterday's not is tomorrow's hot?"
- - annoymous
The Hot Coffee Shops:
With two price breaking records of coffee shop changing hands at $40 million and more to come is a signal of an upward shift in equilibrium of supply and demand?
Each of this transacted multi-million dollars will perhaps redefine how the coffee shop business model evolves to a new way of using spaces and redesign to expand more tenants and increased sitting capacity outwardly beyond the five foot way area.
Who will be the beneficiary?
Fact is, these two transacted coffee shops have 74 years left of a 99 years lease. We can also assume the flats above these coffe…
[6:59 pm, 20/06/2022] +SL: Fed formula
[7:00 pm, 20/06/2022] +Smiley face: If it was that easy to deflate this fatty inflated animal....
[7:00 pm, 20/06/2022] +SL: It will
[7:00 pm, 20/06/2022] +Smiley face: Disaster..... Hope not
[7:01 pm, 20/06/2022] +SL: Historical said so
[7:01 pm, 20/06/2022] +Smiley face: Massive unemployment for nations, hope not!
[7:01 pm, 20/06/2022] +Smiley face: Rymes or repeats, hope not!
[7:01 pm, 20/06/2022] +Frankie Wee: Reduce inflation = cut down price
Feb rate hike = sale lose and profit
Economy = recession
I can the point is not improved
[7:02 pm, 20/06/2022] +REACH: Dear Contributors,
We will be closing the chat for today.
Thank you very much for being part of our WhatsApp chat and participating actively.
Goodnight!
Megan 😊
[7:02 pm, 20/06/2022] +Smiley face: It will never be the same.... That's reset!
[7:02 pm, 20/06/2022] +Joseph: Unfortunately, the Govt has to sometimes step in with harsh restrictions to break the vicious cycle. The objective is not to have a FREE ECONOMY, but rather, the free economy is supposed to be a means to achieve greater prosperity and improvement for everyone. When it (free/market econ) is no longer producing positive results, then it is time to put a (temporary) stop to it.
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