Singapore’s farming crunch has wider lesson: companies like grants, but prefer customers

SINGAPORE’S farms are finding it tough to turn a profit in spite of government aid. If the country is serious about its “30 by 30” target – to produce 30 per cent of domestic nutritional needs by 2030 – it must do more to boost demand.

The best businesses are those that can benefit from economies of scale. This is one thing the Magnificent Seven stocks have in common. Design one chip well, and it can be sold to billions. Make one movie, then charge millions to watch it.

Farming is similar. Larger farms can better spread the cost of investment in machinery and other farming technology. They are also more likely to win contracts with large buyers, such as restaurant chains.