https://www.businesstimes.com.sg/li...-dire-straits-more-closures-expected-year-end
“Inflation (in Singapore) is at a pretty drastic level, interest rates don’t look like they’re coming down till next year, and even some high-profile bankers I’ve spoken to warn of a recession,” he says.
“Singaporeans are just not spending here. They’d rather eat in Japan, and you can’t blame them. With the rise in GST, it’s very expensive to eat here because you’re adding almost 20 per cent to your bill each time. And manpower quotas are causing a really big problem.”
He adds that restaurant prices in Singapore aren’t high “because we want to charge a lot”. In fact, “if you look at it from a chef’s perspective, given the high cost of ingredients, it’s good value because we don’t make much”.
He cites the three-Michelin-starred Les Amis as an example. “When you see the amount of food they give you, (such as) the caviar, yes, it’s expensive but it’s good value. Compare that to, say Robuchon in Macau, where it costs S$600 for lunch per head, and it’s full house.”
Although some new investors have approached him and his landlord did offer to renew his lease, Koh declined, as he feels the market is the worst it’s been since Covid. In fact, he even thrived during the pandemic thanks to his captive market of expats; but once the travel floodgates opened, many left, leaving a big impact on his business.
