Goodbye, Singapore: Almost half of local firms considering outsourcing to rein in ballooning business costs

Downsizing is also another option.

Domestic firms are considering an extreme weapon against Singapore’s persistently high business costs. According to a study by the Singapore Business Federation, majority of enterprises are focusing on cost reduction measures to combat ballooning business costs.

The report revealed that 43% of firms are considering outsourcing, while 41% are thinking of freezing their headcount and moderating wages.

The most popular cost reduction measure is reducing overheads, which is favored by 63% of firms, followed by procuring cheaper supplies at 62%.

In addition, some 22% of polled enterprises--of which 50% are mid to large-sized companies--are looking to relocate facilities to lower cost countries. Another 21%--of which 20% are large enterprises--are considering downsizing as an option.