What businesses don’t count could cost them profits

In a commentary, Prof Euston Quah, president of the Economic Society of Singapore (ESS), Albert Winsemius chair professor of economics and director of the Economic Growth Centre, wrote that in the recent haze episode, businesses that had not produced the smoke suffered the consequences, with both F&B business and airlines suffering from losses. The lesson goes beyond haze. Many things that influence commercial success have no obvious price. Companies that overlook them risk making decisions that look sound on paper, but prove costly in practice. That is why cost-benefit analysis (CBA) should have a more prominent place in business decisions.

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