With the GST hike from 7% to 9%, businesses should leverage more on technology and automation to quicken the pace of productivity gains and maintain price competitiveness, shares Chief Executive Officer Jayaprakash Jagateesan with The Business Times
RHT Holdings Chief Executive Officer Jayaprakash Jagateesan was quoted in The Business Times’ Views From The Top article titled “Short-term pain for a stronger fiscal footing”.
The article was first published on 26 February 2018.
‘Short-term pain for a stronger fiscal footing’
Monday, 26 February, 2018
THIS WEEK’S TOPIC: What would be the impact on business and the economy of the two-point hike in the GST rate to 9 per cent, due sometime in 2021-2025 ?
Chief Executive Officer
RHT Holdings Pte Ltd
FROM our perspective, the GST hike from 7 per cent to 9 per cent is a practical step in response to higher fiscal spending in the longer term. It is a positive move by the government to announce this a number of years ahead of the planned hike as this gives time for businesses to make adjustments to their longer-term budgets.
For businesses, the main impact would be on maintaining price competitiveness in their markets. This entails being prudent and leveraging even more on technology and automation to quicken the pace of productivity gains. Additionally, businesses here must also look at ways to hedge against any potential rise in commodity prices as global demand grows. The GST hike is one of many long-term factors that impact businesses here and as we have seen in the past, Singapore businesses have proved to be resilient in the face of a multitude of challenges.