Soaring property prices are only second biggest issue.
In this year’s survey, Economist Corporate Network members assessed whether issues below where material constraints on their ability to operate—and whether they were serious enough to cause managers to consider decamping to other locations.
Cost of living/inflation tops the chart of major irritants in Singapore with more than half of surveyed companies indicating it to be either a major constraint or a reason to relocate—and nearly 40% consider property prices as having the same impact.
Will this cause companies to look at other places to put their regional management hubs?
Economist Corporate Network says: "In all likelihood not."
"It is still vitally important to have a critical mass of management in places where travel is convenient and the financial system works well. However, that doesn’t mean that firms are doing nothing. Anecdotally, some firms are moving parts of their operations that don’t need to be in their regional hubs into less expensive cities in other countries. Other firms are exploring more distributed management models, spreading their senior team across several markets, rather than putting them all in one place."
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