Business conditions in Singapore have fundamentally transformed since the pandemic, with many sectors facing tighter margins and escalating operating expenses. In 2025, the food and beverage, retail, and service industries encountered a dual challenge of reduced local spending and fierce competition from new market entrants. With rising rental costs and manpower shortages, owners are finding that even minor missteps can lead to significant financial repercussions.
Among those adapting to these challenges is Lik Wong, co-founder of X-Boundaries, a retailer specializing in outdoor gear. Since its establishment in 2002, the company has seen rental rates surge by approximately 50%, alongside a 53% rise in manpower costs in 2024, followed by an additional 13% in 2025. Instead of reducing staff, Wong opted to enhance wages for experienced employees, while maintaining an occupancy cost ratio below 18%.
Cost management strategies at X-Boundaries included selective trimming of expenses, such as replacing fixed phone lines and optimizing energy usage. Collaborative logistics efforts allowed the company to share warehouse space, thereby reducing costs and improving operational efficiency. Similarly, Elson Lee, founder of traditional healthcare providers Refresh and Yong Kang TCM, embraced a comparable strategy focused on enhancing value rather than broad cost reductions.