By Tan Dawn Wei and Chen Meiyue

As her business costs increase, Madam Yao Xue Yan has had less time to spend with her two young children in recent months.

The 37-year-old, who runs a shop selling children's toys in Toa Payoh, has had to spend more time at the store since she did away with the services of a part-time employee in February.

Sales had dipped after the Chinese New Year festive season.

Now, only one full-time staff member works in the afternoons.

Madam Yao had to employ a maid to look after her children, aged six and one, but she said it 'is cheaper than hiring a part-timer'.

Compared to the same time last year, her shop's net profit has decreased by between 20 and 30 per cent. Net profit last year on average was $1,600 a month.

She has not raised prices despite her suppliers charging 10 to 20 per cent more for goods as the cost of raw materials and fuel go up.

'What I'm selling are not necessities, so people's buying power will be limited. If I increase prices, I'll lose a lot of business,' she said.

Despite keeping prices constant, Madam Yao, who is married to a computer technician, is still seeing a dip in business.

'In the five to six years I've been in business, the June holidays were always good for sales. But this year, the June holidays are no different from other days,' she lamented.

This article was first published in The Sunday Times on Jun 15, 2008