Chee Soon Juan highlights impact of rising costs after closure of Orange & Teal's 2nd outlet

SINGAPORE: Dr Chee Soon Juan, Secretary-General of the Singapore Democratic Party (SDP), highlighted the rising costs and the impact of the Goods and Services Tax (GST) increase to 9% has widely affected businesses and reduced consumer spending, leading to lower sales and retrenchments.

This came after Orange & Teal, a café owned by Dr Chee and his wife, Dr Huang Chih Mei, announced on 11 October that they had closed down their second outlet in Marina Square, which opened in 2022.

The café, shared on social media that the closure was due to "rising costs," while their Rochester Mall outlet would continue to operate as usual.

Dr Chee criticises Singapore's "rentier economy" for contributing to economic downturn

In a video message on 22 October, Dr Chee Soon Juan addressed the closure of the café’s second outlet, noting that over the past couple of years, suppliers of coffee, cake, vegetables, and meat have been issuing notices about necessary “price adjustments.”

While he stated that he did not blame these businesses for their actions, he pointed out that they, too, face significant expenses and cost burdens.

He emphasised that these adjustments have been particularly noticeable since the increase of GST to 9%.

Dr Chee highlighted how this increase, combined with higher costs for supplies, rent, utilities, transportation, and fuel, has significantly contributed to inflation.

This inflationary pressure has created a double burden: rising costs for businesses and reduced consumer spending, resulting in lower sales and retrenchments.

He noted that these rising costs are forcing multinational companies such as Dyson and Samsung to either lay off workers or leave Singapore entirely, with UOB relocating to Kuala Lumpur.

Dr Chee also cited a report from Business Times, which revealed a significant increase in closures within the food and beverage (F&B) sector in 2024, surpassing even the pandemic year of 2020.

He criticised this downturn as a consequence of Singapore's "rentier economy," where the government relies on increasing fees and prices to extract wealth from the population, rather than fostering a productive and innovative economy.

To support his argument, Dr Chee referenced a recent study by Singaporean economists Professors Linda Lim and Pang Ng Fong, who described the current economic system as "inefficient, inequitable, and unsustainable."

According to the study published on 15 October, this system's weak productivity performance threatens Singapore's competitiveness, economic growth, and living standards.

Dr Chee plans to corporatise Orange & Teal to fulfil his commitment as a full-time MP if elected

Dr Chee Soon Juan also reflected on his journey with Orange & Teal, expressing satisfaction with the success of the Rochester Mall outlet despite the challenges facing the F&B sector.

He mentioned that he had bigger plans for the café, which he would reveal in due course.

Dr Chee shared that the idea of starting the eatery was linked to his work with SDP over a decade ago, aiming to create a space that offered more than just dining.

He envisioned the café as a venue for passionate discussions, heated debates, and a place where minds and hearts could freely exchange ideas about life in Singapore.

Dr Chee described Orange & Teal as a microcosm of the Singapore he wished to see—vibrant, sophisticated, cultured, and built on open conversation.

He emphasised their efforts to keep prices low despite rising costs and called for continued support from customers to sustain the business.

Additionally, Dr Chee discussed his future plans to eventually corporatise the business and step back from daily operations as he prepared to honour his commitment to becoming a full-time Member of Parliament for Bukit Batok after the next general election, hinting at his intention to continue contesting in the constituency.