Singapore’s Ministry of Trade and Industry (MTI) and the Competition Commission of Singapore (CCS) told state media TodayOnline yesterday (July 08) that businesses should not raise prices in response to the government’s 30% price hike in water prices.
According to media reports, kopitiams in Singapore are raising their drinks prices by 10 cents as the government raised water prices by 30%. MTI however called the price raise implemented by the businesses “indiscriminate and unreasonable”:
“Businesses should not use the water price hike as an excuse to raise prices indiscriminately and unreasonably. The Competition Act also prohibits agreements that prevent, restrict or distort competition. The CCS will take action against businesses found to have engaged in such practices.”
The MTI is looking to punish a group of drink stall owners in Redhill Food Centre as part of the propaganda effort to divert blame over the 30% water price increase policy. According to state media TodayOnline, several drink stall owners in Redhill Food Centre met together to implement a price increase.
Minister Koh Poh Koon and Senior Minister of State Indranee Rajah are among the two ministers who claimed that the 30% water price increase has no impact on business costs and expect the businesses to absorb the costs.