Singapore ‘will lose its attractiveness’ to foreign firms if rising costs continue, European businesses warn

Seven in 10 businesses are now considering relocating personnel out of Singapore, a survey by the European Chamber of Commerce in the city state found

Residential rent increases of more than 40 per cent were cited as a reason in the report, alongside rising general costs caused by inflation

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Of the 268 business companies surveyed, 97 per cent indicated that employees exhibited visible anxiety and psychological distress over rising rents in Singapore Photo: Xinhua

Published: 10:01am, 28 Mar 2023Updated: 10:21am, 28 Mar 2023

Half of expatriates in Singapore have been hit by rent increases of more than 40 per cent, while about seven in 10 businesses are ready to relocate their staff out of the city state if there is no relief from rising operating costs, a survey has found.

Conducted by the European Chamber of Commerce in Singapore (EuroCham), the survey aimed to assess the extent and severity of the impact of rising costs on business operations in the country.

The report on the survey, released on Monday, warned that the situation is “not sustainable”.

If business costs do not fall or the government doesn’t step in to help, then “Singapore will lose its attractiveness to foreign companies which will decide to relocate their offices to neighbouring countries”, the report said.

Given the rising costs of operations, 69 per cent of companies surveyed indicated that they would be ready to relocate their personnel out of Singapore. Photo: AFP

The survey was done in collaboration with 14 European national business groups, the Singapore International Chamber of Commerce, the British Chamber of Commerce in Singapore and the Canadian Chamber of Commerce in Singapore.

In all, 268 local and international businesses operating in Singapore, which are members of these chambers of commerce, responded to the survey.

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