SM Teo warns businesses about ‘just-in-case’ costs amid climate change, supply chain glitches

COMPANIES may have to contend with “just-in-case” costs while building resilience against global challenges, which range from climate change to supply-chain disruptions, said Senior Minister Teo Chee Hean on Wednesday (Jul 24).

Speaking to business leaders at the Singapore Apex Business Summit, he said: “‘Just-in-case’ means diversifying your entire business, including markets, products, the locations of your facilities, and even the people you hire.”

He added: “Expanding into new markets can mitigate localised economic downturns and sudden restrictions in market access. Establishing production facilities across different regions can help to reduce concentration risk and supply disruption.”