GST Rate Hike in Singapore and Impact on Consumer Behavior

With the new year comes a 1% increase in Singapore's Goods and Services Tax (GST), which has taken effect from January 1st. For those who have been out shopping, the hike is already making its presence felt. In this episode of Morning Shot, Professor Sumit Agarwal from the National University of Singapore’s School of Business explores the implications of this tax increase on consumer behavior and business operations.

How the GST Hike Affects Consumers and Businesses

Professor Agarwal shares his insights on how this GST hike may impact the way consumers shop and businesses price their goods and services. He discusses how price-sensitive customers may alter their spending habits, leading to shifts in demand for certain products, and how businesses might adjust their strategies to maintain profitability amidst rising costs.

Tips for Managing Your Expenditure

As prices rise, Professor Agarwal offers practical tips for consumers on how to better manage their budgets. From making more mindful purchasing decisions to adjusting your household expenses, these strategies can help cushion the impact of the GST increase on your day-to-day spending.

Whether you're a consumer trying to adjust or a business owner navigating the new cost environment, this episode offers valuable insights on making smarter financial decisions in 2024.

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