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.
