Case Study 1:
Rechargeble AA batteries at a French Hypermarket located in Singapore City Center.
The same Rechargeble AA batteries at French Hypermarket counterpart in JB.
Price comparison:
Malaysian Price = RM89.90
Singapore Price = SGD28.90 X 2.37 = RM68.49
Price Differrence = RM21.41
Percentage Difference = (21.41/68.49) X 100% = 31.26%
Business Cost Comparison :
1) The batteries are made in China. Batteries cost should be the same.
2) Hypermarket wages: Malaysia (RM4/hour) and Singapore (SGD4/hour). Malaysian labour cost should be lower.
3) Rental of Premise: Overall, Malaysian rental cost should be lower.
Malaysian Hypermarket location - JB residential area (15km from JB town).
Singapore Hypermarket location - Prime retail space in one of Asia most expensive business district.
The basic cost of doing business is lower in JB. But the same AA batteries are a whoping 31% more expensive in JB than Singapore. Most people jump to the conclusion that electronic stuff are just cheaper in Singapore.
That is a very flawed view. The answer lies not with the Singaporean. For them its just a straighforward trading business. Be it batteries, mp3 players, LCD TV or even oranges - it is still just the business of buying and and selling basic stuff.
The real question is why are things in Malaysia more expensive than they actually are?
Or more specifically where are the hidden cost?
Are AA batteries luxury items?
Do they require Approve Permit for importing?
What are duties imposed?
Are the logistics and transportation cost too high?
A lot more of our basic goods are unreasonable more expensive than they should be.
Barisan Nasional has really screwed up the Malaysian economy big time.
Hundreds of thousands flock to work in Singapore not just because of the strong Sing Dollar only.
It is just that many could barely afford the basic things in their daily lives.
The same Rechargeble AA batteries at French Hypermarket counterpart in JB.
Price comparison:
Malaysian Price = RM89.90
Singapore Price = SGD28.90 X 2.37 = RM68.49
Price Differrence = RM21.41
Percentage Difference = (21.41/68.49) X 100% = 31.26%
Business Cost Comparison :
1) The batteries are made in China. Batteries cost should be the same.
2) Hypermarket wages: Malaysia (RM4/hour) and Singapore (SGD4/hour). Malaysian labour cost should be lower.
3) Rental of Premise: Overall, Malaysian rental cost should be lower.
Malaysian Hypermarket location - JB residential area (15km from JB town).
Singapore Hypermarket location - Prime retail space in one of Asia most expensive business district.
The basic cost of doing business is lower in JB. But the same AA batteries are a whoping 31% more expensive in JB than Singapore. Most people jump to the conclusion that electronic stuff are just cheaper in Singapore.
That is a very flawed view. The answer lies not with the Singaporean. For them its just a straighforward trading business. Be it batteries, mp3 players, LCD TV or even oranges - it is still just the business of buying and and selling basic stuff.
The real question is why are things in Malaysia more expensive than they actually are?
Or more specifically where are the hidden cost?
Are AA batteries luxury items?
Do they require Approve Permit for importing?
What are duties imposed?
Are the logistics and transportation cost too high?
A lot more of our basic goods are unreasonable more expensive than they should be.
Barisan Nasional has really screwed up the Malaysian economy big time.
Hundreds of thousands flock to work in Singapore not just because of the strong Sing Dollar only.
It is just that many could barely afford the basic things in their daily lives.
3 comments:
I am most happy that this blog "tambak johor" was created.
It should have been created long time ago. I was thinking of doing this but I haven't. I am glad that it has been done.
I am not working in Singapore. But I travel there very often. So I hope that you could include me as kaki tambak as well.
I think a blog like this should be created because there are many who misunderstood about JB and Singapore.
Most thought that JB is hell and Singapore is heaven.
Especially those who read and watch SPH and Mediacorp productions, on daily basis.
This blog should give a chance to those who have seen the other side of the story, to tell the version he or she has seen.
It need not be the whole truth, but at least something for the readers to think about.
Something that the Straits Times, or Nanyang Siang Pao, won't publish.
Very well said. Nowadays we know that not all goods is lower priced in Malaysia. In fact, only goods manufactured in Msia (and then exported to Singapore) has a chance of being cheaper.
You should understand that the costs of doing business (and trading) in Malaysia is way above your calculation above. Hidden costs, all that cannot appear on accounting books but all that have to be absorbed into the selling price. The word starts with "C".
Perhaps we can start a project to do a monthly price comparison of a basket of representative essential household goods?
To Mercedes,
I have the same sentiment and I commended Kaki Tambak for starting this blog.
I have a personal blog on https://AirKosong.com/
Being a resident in Singapore, I sometimes write on issues touching on Singapore/Malaysia. Look for Singapore category of the blog.
Post a Comment