Rising Consumer Complaints About Surcharges

As the festive season of Chinese New Year approaches, consumers in Singapore are bracing themselves for potential price hikes on various products and services. However, a major consumer advocacy group, the Consumers Association of Singapore (CASE), stresses that retailers must be transparent about these surcharges, which could soar up to 30%.

In a growing trend, CASE reported a significant rise in complaints regarding hidden surcharges, with complaints climbing from just four cases in 2022 to nine over the last year alone. The complaints have primarily involved essential services such as car washes, hair salons, and nail clinics, where consumers were caught off guard by unexpected price increases.

Why Are Prices Climbing?

The reason behind these surcharges is primarily linked to increased operational costs. Seasonal spikes in demand often drive up prices for food items and labor. For instance, local nail salon Nails Actually has announced an additional surcharge, ranging from S$5 (approximately US$3.70) to S$15 as customers seek beauty treatments ahead of the celebrations. According to salon owner Jason Tan, the extra revenue generated during this peak period will help the business offset low-profit months throughout the year, ultimately allowing for employee profit-sharing.

Wet markets are also witnessing surging prices. One vendor noted that the cost of his vegetables has skyrocketed by 40% due to unfavorable weather affecting crop yields. Similarly, a seafood seller revealed that the price of prawns has surged from S$10 to S$16 per kilogram due to supplier increases.

Stability Amid Fluctuations

Contrary to the general trend, NTUC FairPrice, a leading supermarket chain, has committed to maintaining the prices of several staple items typically used during Chinese New Year, including shiitake mushrooms and Chinese cabbage. In a noteworthy gesture, this year, they've frozen prices on pork items as well, despite the overall surge in prices.

Challenges for Bazaar Vendors

On another front, vendors at the annual Chinese New Year bazaar in Chinatown are fighting a battle of their own, struggling with diminished sales attributed to ongoing rainy weather. Reports indicate that stallholders are slashing prices to entice customers, with one seller revealing they now offer eight decorations for just S$1, down from S$1 for a single item last year, amidst a staggering 30% drop in sales compared to the previous season.

In an effort to revive foot traffic, the Chinatown Festivals Committee is hopeful that its annual countdown celebration will stir last-minute shopping enthusiasm among Singaporeans. Head of public relations Luo Chen Jun mentioned that exciting promotions planned post-countdown aim to galvanize consumers to take advantage of the festive offerings.

With retail adjustments and unpredictable weather, this year's Chinese New Year promises to be a financially charged time for both consumers and retailers in Singapore. As the holiday draws near, shoppers are encouraged to stay informed and vigilant about potential surcharges, ensuring a joyful and well-prepared celebration.