Kenneth Tiong: "A shopowner absorbed GST hikes - from 7% to 8% and 8% to 9% without raising prices.....

[Tree]

Kenneth Tiong: "A shopowner absorbed GST hikes - from 7% to 8% and 8% to 9% without raising prices. There's a worry raising prices will drive away cost-sensitive customers. Another issue is COE. An elderly couple who run a flower delivery business need to renew their van's COE. They can't afford it"​

[Saturday Market Walks]

Good to be back doing our regular coffeeshop walks in Serangoon these past two weekends after a week away with Serangoon residents in Chongqing and Chengdu (more on that soon!).

Some of what I heard on the ground:

A shopowner has absorbed both GST hikes - from 7% to 8%, and 8% to 9% - without raising the prices. In mature estates with more retirees, there's a worry that raising prices will drive away cost-sensitive customers. This is a tough balance to strike.

I believe that the voucher system will be a big part of keeping a significant portion of local spending here, even after the Johor links are liberalised. Serangoon North shops should also get more footfall when the Serangoon North CRL station is completed in 2030, though this may go beyond some shopowners' timelines.

Beyond that, once our Serangoon North Vista BTO is completed in 2027, many longtime shopowners have asked for there to be serious consideration of en bloc plans for Serangoon North commercial area - for at least a partial refresh of our commercial area.

Another issue is COE. An elderly couple who run a flower delivery business need to renew the COE on their van. They can't afford it. For small business owners who depend on a commercial vehicle, the COE isn't a luxury purchase, but simply the cost of staying in business.

The government has announced a review of COE categorisation — but as I understand it that review only looks at how to redraw the line between Category A and B cars. It doesn't touch Category C, where commercial vehicles sit.

I believe that there could be a finer categorisation for commercial vehicles. Today, Category C lumps a florist's delivery van together with large trucks and bus operators. A small business owner renewing a light goods vehicle is competing in the same bidding pool as large fleet operators with very different ability to pay.

For that elderly couple, it could mean the difference between keeping their business and closing it.

 

[Scrooball (clone)]

This Kenneth Tiong like some naive Oppo clown. Please la, what absorb GST? Lower profit margin say lower profit margin la. What absorb GST? Lol

I gave way to pedestrians…when I am at the red light. Am I a good driver?