Singapore is the world’s expensive city according to a study of Economist Intelligence Unit released last March 2014. The government is thinking of ways to maintain its competitiveness and business-friendly environment despite the study. According to Lim Hng Kiang, the Trade and Industry Minister, Singapore will give ‘value for money’. This is the strategy.
The Minister spoke at the Europe Day celebration in Shangri-La Hotel. You heard about the intense discussions regarding the rising costs of doing business here in the country. The Minister assured that the government is thinking about restructuring the economy so it can achieve and sustain quality growth.
So, how does the government achieve ‘value for money’? You have to understand what ‘value for money’ means. It is a term to measure if the organization (or country) has acquired maximum benefit from the services and goods it obtained. Here’s how the government can achieve ‘ value for money’:
- Economy: This means that the government should carefully use and allocate the resources in a way that it can save expenses, effort and time.
- Efficiency: Efficiency means that the government needs to think of ways that they will deliver the same level of services for less.
- Effectiveness: This means that the government should deliberate how to deliver better services for the same amount.
It sounds easy but we know that it can be very difficult. Since Singapore is dubbed as the world’s expensive city, businesses should endure the rising costs of rents, utilities and wages to survive. Unable to do so will lead to failure or bankruptcy.