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PortfolioIsAshes t1_j6mtrsu wrote

Reply to comment by ChippyChalmers in HolyMoly, Samsung missed earnings HARD, especially on Chips. by Donerci-Beau

While this isn't a Singapore exclusive problem, they would be one of the outliers. Lots of countries increased their orders by several folds during the supply chain disruption last year thinking that it will last several years. They also increased their price by several times and blamed supply chain to rake in record profits for the first few months. But now every country have excess inventory in many different industry but nobody is ordering. That's why we saw the sudden massive drop in demand and shipping prices crashing in the last few months of 2022.

As for Singapore in particular, their excess inventory problem is much worse since they just increased their GST(Their equivalent of VAT) by 1%, but the great capitalistic opportunists saw it as an opportunity to increase their prices by anywhere between 10%-40%. You can take a look at their sub to see people mad about it, especially if you know the supply chain disruption have largely subsided but the vendors are still using it as their excuse.

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ChippyChalmers t1_j6muq5w wrote

Thanks for that. How the tables have turned! A lot of the inflation we've been seeing worldwide seems to have been from a supply shock, which is naturally resolving via demand destruction. At least, that's what smarter people than myself seem to conclude.

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PortfolioIsAshes t1_j6mvfgb wrote

Yeah it was predicted by analysts from the start when people started overordering, but greed covered people's eyes as all they saw was golden opportunity to take advantage of supply and demand. Demand destruction will slowly take out the morons who took out loans to order excess supply, then the big corporates will start having problems selling too(eg. Samsung missing this hard). That's how we know we're on track for another global recession.

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