By Xavier Lur | SingaporeScene – 22 hours
ago
Orchard road flood worse than breakdowns in terms of impact on
economy. (Photo courtesy of James Chua)
Flash floods,
which hit Orchard Road on Friday, have affected some retailers'
revenue hard due to a fall in human traffic patronising their
stores, though not as seriously as in 2010 as floodgates mitigated
the impact somewhat.
Hamburger chain
Wendy's was estimated to have lost about 60 per cent in sales due
its temporary closure during the Friday dinner rush,
reported The Sunday Times. The fast food chain had to
throw away food to keep up with food hygiene practices.
A few
shops Yahoo! Singapore surveyed had their goods
damaged due to the floodwaters. An electronics store at Lucky Plaza
incurred a loss of $15,000 worth of goods.
Yahoo!
Singapore also spoke to retailers at Liat Towers and
Lucky Plaza and they said though the damage of the floods on Friday
was minimal compared to last June's, the losses incurred are
generally more than the recent MRT train breakdowns.
The recent MRT
train breakdowns, which went out of service for a total of 17 hours
and affected over 222,400 train commuters, is said to have
relatively minimal disruptions to the economy though there were
inconveniences caused, according to Song Seng Wun, executive
director and regional economist at CIMB Research Pte. Ltd.
"There were
inconveniences caused, but there were relatively minimal
disruptions to trade in goods and services because the train
breakdown occurred for a relatively short period -- measurable in a
few hours rather than a few days or weeks," Song
told Yahoo! Singapore in an interview.
"Orchard Road was
only temporarily quieter for a brief period, and I think the first
severe Orchard Road flooding did more damage to some of the shops'
takings than the train breakdowns," he added.
Sharon Tan, who
owns a women's fashion apparel store at Far East Plaza, said while
there was a slight dip in customers during the breakdowns,
particularly during the 7-hour disruption on Saturday morning, the
Christmas festive season has not deterred customers from making a
shopping trip to Orchard Road, citing there were still alternative
public transport routes available.
She claimed that
the flash floods on Friday and in June last year, were more
detrimental to her shop's earnings.
Breakdowns' impact
A reader of
socio-political blog The Online Citizen claimed
that the recent MRT train breakdowns and delays are estimated to
have cost the Singapore's economy about $31 million, which he
calculated based on statistics from the Ministry of Trade and
Industry and Singapore Tourism Board.
Song, on the other
hand, declined to provide an estimate amount of the economic costs
incurred, saying that it requires "many brave and unrealistic
assumptions".
Yahoo!
Singapore has also spoken to other experts in the
industry, and all claimed that it is difficult to quantify the
economic costs, but reiterated that the economic implications to
trade in goods and services is relatively small in the context of a
S$300 billion economy, because the incidents were only temporary
disruptions.
In addition, two
out of three of the major train service breakdowns occurred when
people were heading home or going to work on a Saturday morning, so
workers' productivity is minimised, as compared to a train
disruption on a weekday when people are going to work.
The reputation of
Singapore as a world-class transport hub seems to be of a paramount
concern instead, noted Song Seng Wun.
"The damage in my
mind, is less about the economic cost than the reputation of
Singapore. In the eyes of any Singaporean, tourists or investors,
Singapore is about efficiency. Well, the government is still
efficient. But now, the question is how efficient is the public
transport system," he told Yahoo! Singapore.
