'Crazy prices': Consumers irked by businesses raising prices ahead of GST hike

The_King · December 29, 2023

Even before the GST rate change to nine per cent next week, it seems we may already be getting a taste of things to come.

Already, some popular local brands have increased the prices of their products, Lianhe Zaobao reported on Wednesday (Dec 27).

During Budget 2022, the government announced that GST is set to increase from eight per cent to nine per cent at the beginning of 2024.

However, some local favourites including Old Chang Kee, Ya Kun Kaya Toast and Toast Box have increased their prices before the end of the year.

Foods sold at Old Chang Kee have seen a general rise in prices by about 10 to 20 cents, Zaobao reported.

Ya Kun's Set A, which used to be $5.60, has increased to $6.30 - a 70-cent increase in price.

Toast Box's menu has also seen similar shifts in prices, with items like their laksa going up by 40 cents from $10, and the curry chicken with rice going from $10.30 to $10.50, according to a Hardware Zone post today.

This is in comparison to an image of Toast Box's menu from January this year.

'Common food, atas prices'

Many netizens expressed dissatisfaction at the new price tags on their meals, describing it as being "super expensive".

"Common food, atas prices," one user on Hardware Zone said, addressing Toast Box's menu.

Bewildered, another user agreed: "These are crazy prices."

Some also feared these price changes are merely the start - once the new GST rate kicks in, they speculate that prices would rise even further.

Responding to queries from Shin Min, an Old Chang Kee spokesperson explained that majority of their price adjustments were about 10 cents.

"While our product prices do include GST, the main reason for our recent price changes is that Singapore is facing economic challenges that have impacted the operating expenses of many businesses including Old Chang Kee," the spokesperson said.

These expenses comprise of supply costs, rent, labour and other aspects of their business.

The spokesperson added: "We believe that measured price adjustments will allow us to continue providing customers with the food they know and love while maintaining quality and ensuring the long-term sustainability of our business."

In a previous statement responding to queries by 8days in January following calls to boycott Toast Box over their price hike, the company explained that they had added more ingredients into some of their food.

However, Toast Box also acknowledged that there was an increase in pricing and explained then: “Due to the recent rise in raw material prices, manpower and operating costs, we have had to make the necessary adjustments in order not to compromise on our product quality and service standards."

Getting along with GST

Although we may dread the GST change that looms on the horizon, some businesses have also done what they can to help consumers get by.

FairPrice Group announced their scheme to absorb the one per cent GST increase for 500 essential items for the first half of the upcoming year, covering staples like rice, fruits, vegetables and toilet paper.

Likewise, Sheng Siong has also dished out a three-month one per cent discount from January to March on most of its items excluding infant formula, tobacco, alcohol, medicinal products and their disposable carrier bag charge.

From January through till June, Giant has also decided to cover the GST increase on 700 essential items to help Singaporeans deal with the rising cost of living, The Straits Times reported.

No plans to raise prices just yet, some hawkers say

Speaking with Zaobao, some hawkers also expressed that they have no intention to raise their prices despite know that the GST rate will increase next year.

A western food stall hawker surnamed Guo told the Chinese daily: "Our prices haven't changed since they were last adjusted two years ago. Although costs have increased by at least 20 per cent over two years, we know that we're all working hard, so we have no plans to raise prices for now.

"As for the next year, we can only wait and see if costs will continue to climb before making decisions."

Lin, a chicken rice stall owner, told Zaobao that he increased his prices by 50 cents last year.

However, he doesn't intend to raise prices any further - at least for the next six months - because he's worried that customers would be disinclined from patronising his stall if he were to increase prices too frequently.

In September, Deputy Prime Minister Lawrence Wong said in a press conference that the government will monitor businesses to ensure that no profiteering will take place due to increased costs, CNA reported.

“Whether it’s hawkers or other businesses, (they) may use these price increases as an excuse to profiteer, increase prices more than necessary,” he said.

"We have a committee set up against profiteering, we will continue to monitor against such behaviour."

AsiaOne has reached out to Toast Box and Ya Kun Kaya Toast for comment.