In my current series of costing lectures, we discussed about by products being an output from production of the main product.
Using the analogy of en-bloc sales and subsequent property development and consequent sales of these new units (being the main product of the developer, what can we do with the debris and steel (being the by product)from knocking down of these old buildings?
Answer - For land reclaimation ie. extending Singapore's land area.
Can you ponder on this point for a moment?
So if you were the owner of a granite quarry in the neighbouring country and supplying to Singapore, how would you feel when you see other people "wastefully" tearing down more than decent buildings, dumping the debris into the sea and consequently collecting billions from reclaimed land sales?
These reclaimed land could house more IRs, Suntec Cities etc etc etc...
Moral of the story
Be sensitive to your feelings... ha!
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