The American Club 2022/2023 Annual Report

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The energy rate hike from July 2022 was a significant cost issue. From $0.145/kWh in FY2022 to $0.441/kWh in FY2023, utility costs increased from $1.11 million to $2.72 million which significantly impacted the financial result for the year. OUTLOOK FOR THE FUTURE The challenges and uncertainties in FY2023 are likely to continue well into FY2024. The GC and Management hold a world-class Member experience of paramount importance and therefore have prioritized talent acquisition, clubhouse upgrades and new offerings balanced with stringent cost control and overall fiscal prudence. The Club is made up of people who live and work to create a community. This community spirit will help us to meet these challenges and continue to provide an improved membership experience at an affordable cost.

Completing the top three revenue contributors is Fitness & Leisure with notable earning improvements from both the Aquatics and Tennis sections, generating a total revenue of $3.59 million, 17% higher than last year.

CHALLENGES The strong economic recovery came with some significant challenges. The prolonged Russia- Ukraine war, as well as regional political tensions, are continuously triggering a series of undesirable challenges such as high inflation, supply chain disruption and energy price hikes. Locally, businesses had to tackle a tight labor market, layoffs in various industries, and significant upward price pressures in both cost of goods and wages. The recovery in Club usage coupled with the manpower shortage was a two-fold hurdle from a service perspective. With Singapore’s low unemployment rate and reliance on foreign workers, the Club resorted to employing casual labor to augment the lack of manpower. This resulted in service challenges across all outlets – the control of which will continue to be a Management focus in FY2024. The General Committee (GC) and Management are keeping payroll management as a priority. This is a balancing act between incentivizing long-serving employees and hiring the best possible talent while maintaining payroll cost at a sustainable level.

THE AMERICAN CLUB SINGAPORE ANNUAL REPORT 2022 / 2023