With recent spotlight on PMET looking for job at the job fair where pap’s government encourage PMET retrenchment to get startup program. I laud at the ideas of the government for it and most of all the dumbest ideas of all in the world from our elite scholar. Or maybe unintended consequences that it might creating circular flow income opportunities to stable the GDP growth for Singapore? But who will had the large portion of the pie?
Hence it is more like a bait to encourage consumption spending during this period of downturn. As Singapore’s economy are affected mostly by U.S and China market; weak and vulnerable. Lastly, Singapore is small without any resource and mainly dependent on our PSA wharf for import and export. With the drop of export and raise of import to support a large population.Singapore can hit by or easily get into a recession. Worst still with a high number of unemployment; not to forget those had not employed for more than 6 months. Most of the well educated retrench had degraded to uber or grab driver and worst taking up menial work just for a living wage to stay alive.
This scheme on the startup; I am skeptical whether will it help to rise income for an individual or create more job for Singaporean. In long term run starting up business for individual creating competition in an over saturated dense populated country; it is creating more household debt and currently with raise of water tax and electrical bill causing high inflation. The only business booming is the loaning and borrowing from the banking and financial institutions. As in today business world, business can’t survive without on credit or on loan. For a business to stay afloat and alive innovation is needed. Pricing for product and service will be affected by it. Who will bare the cost of innovation?
Disadvantage of innovation
- Job are made redundancy
- Take time and energy to retrain
- To innovate it might imply high investments that are not paid back during the product life cycle;
- Excessive concentration of resources and attention on the new product at the expense of quality and marketing of the existing products;
- Wages depress
- Research is very expensive which is only affordable for large firms
- takes a considerable amount of time which means investors have to wait a long time for any return
- Other companies may adopt similar products without having to undertake the expensive research
- to succeed in a competitive market, firms must produce continuously innovative ideas which require continuous investment
- increase income inequality and poverty
- reduce product quality
- increase of inflation
Govt stimulus programs to get economy going again, that create more household debt, may make the economy worse in the long-run.
Why dumb ideas of all?
Dumb in the sense because there is a limitation to the government funding and a need to fulfill the requirement. For those whose are hot in jumping in need to consider these factors:
- Will there be any hidden cost for the startup business such as labor, raw materials, equipment, equipment maintenance, PUB, rental etc.?
- To what extend the funding able to cover up the cost?
- Do you able to cover up the hidden cost?
- What is your budget?
- What is supply and demand market locally and globally in your startup business?
As mention, over here in the website most the fundamental on the economy are supply and demand whether on the local or global market. Since SG market is small and over saturated.
- What are push and pull factor for supply and demand?
- Are you strong in networking(connection) in your startup business within the sector?
- What are Policies from banking loan and policy?
- Is there any business that simpler to your startup business?
- Branding and marketing strategies: place, promotion, product & service, and pricing?
Who benefits from it?
Usually, it is will be the gov and the banking? As one saying who control the money control the world.
What do you think?
- gather SME of the different industry to form a group.
- cooperation within the group and reduce competition
- reduce redundancy on the double usage of the resource
- create job
- get listed on SGX
Logic & Economy sense.