The announcement of an increase in Commercial Registration (CR) fees seems to have triggered conflicting emotions in the business community.
There is no denying that Bahrain is going through challenging times, but to suggest the proposed fee revision will bring businesses to a tipping point is an exaggeration.
After all, CR fees were much higher before 2009, when they were lowered to encourage new businesses and, according to 2016 figures of the Industry, Commerce and Tourism Ministry, this has worked.
The number of new registrations topped 61,000 in 2016, with overall capital exceeding BD2.2 billion – an increase of 160 per cent.
Even after the CR fee hike, the cost of starting a company in Bahrain will still be lower than other countries, even those in the GCC.
Those against the increased CR charges say it will affect Small and Medium Enterprises (SMEs), which make up over 90pc of the business environment in Bahrain.
True, big enterprises are not complaining about the change and will probably adjust their business model to fit the new rates.
As for SMEs, yes the past couple of years have been challenging for them, but the new CR regulations can also be seen as an opportunity to streamline their focus by shedding unwanted listings in their CR and strengthening their core business.
The CR fee hike is a very small part of the overall picture of managing a business in tough times.
There are other issues such as exploring pathways less taken, improving technology in the running of SMEs, creating a market for new products or pushing the idea of Bahrain as a gateway to the Middle east and North Africa (Mena).
The list is long and, if worked on, eclipses the impact of the CR fee hike.
Similarly, people are raising the spectre of rising prices if neighbourhood cold stores face an increased annual CR fee estimated at a total of BD1,300.
But if you calculate, that works out to just about BD3.5 per day.
If a business cannot generate even that much extra after meeting other expenses daily, should it not be looking at a different business model?
If anything, perhaps we should request a phased introduction of the CR fee increase to give us all some time to adjust to the idea.
Having introduced the new fees, the business community should sit down with the ministry to map out more relevant changes for our future.
For example, should we not have policies that will encourage more manufacturing activities in Bahrain?
Are we really content being just a trading hub?
We need more constructive debate on topics such as increases in industrial land prices and better access to industrial financing.
Let’s also address the elephant in the room.
In so many cases business owners, especially at the SME level, have been loading their CRs with varied and often unconnected activities, all for a nominal flat rate, simply as a means to acquire visas that they then sell to expatriates.
That goes against the grain of Bahrain’s efforts to develop a humane approach to labour reform and create a level playing field for Bahrainis and expat workers alike.
By cutting back on loaded CRs with empty listings we will also get a clearer picture of economic growth and activity, which can be used to calibrate national growth.
Economic diversification is the need of the hour.
The new fees are not the bogeyman, our inflexibility in the face of any change is the real challenge.