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S'pore households' median monthly income rises
By Imelda Saad | Posted: 14 February 2011 1129 hrs <LINK rel=image_src href="http://www.channelnewsasia.com/imagegallery/store/phpB9Y5H4.jpg">
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SINGAPORE: The Department of Statistics (DOS) said the median monthly income from work among resident households increased by 3.1 per cent last year, recovering to a level higher than before the economic downturn in 2009.
It rose S$150 to S$5,000.
In real terms, the increase was 0.3 per cent.
Growth was also higher in smaller housing types, with those in one and two room flats seeing the highest income growth of 7 per cent, compared to just 2.4 per cent for those living in 4-room and larger flats.
The department said this is due to the various government schemes which gave a larger boost to those staying in smaller homes.
Resident households in one- and two-room public flats received an average of S$2,650 per household member while those in three-room flats received an average of S$1,480 per household member.
This was higher than the S$530 per member for those in private properties.
Observers though point out that the percentage change in income growth for poorer households, comes from a much lower base.
Tan Khee Giap, Co-Director of the Asia Competitiveness Institute at the Lee Kuan Yew School of Public Policy, said: "I'm not going to be excited by the fact it's seven per cent. If you look at this you are excited unnecessarily."
Economist from DBS Bank Irvin Seah added: "Even if their income has risen by a relatively larger margin, we should not forget that we're talking about a percentage change from a low base.
"The absolute increment is still far lower than the higher income groups. Moreover, their absolute income level is still way below the national average."
Given that the average inflation rate was 2.8 per cent in 2010, observers said wages for the lower income group are not rising fast enough.
Among households with at least one working person, the average monthly household income from work per member went up by more than 3 per cent in real terms across all income groups.
The increase was bigger for employed households in the 11th to 40th percentile and the top 10 per cent, ranging from 5.0 to 5.3 per cent in real terms in 2010. Among employed households in the 41st to 90th percentile and the lowest 10 per cent, the increase ranged from 3.4 to 4.3 per cent in real terms in 2010.
The Gini coefficient, which is a measure of income inequality, continued to rise.
It crept up to 0.472, compared to 0.471 in 2009.
If government benefits and taxes are factored in, the Gini coefficient was 0.452 in 2010, up 0.004 from the previous year. Benefits include utilities rebates, medical and education subsidies.
Observers said this means subsidies given weren't enough to address income disparity.
However, some cautioned against handing out direct cash.
Mr Tan said: "I'm less inclined for the government to give money directly into the pockets of the low income as subsidies I rather want to see them going indirectly for example paying for your tuition fees, paying for your school uniforms, paying for your textbook, giving you breakfast, giving you subsidies for your housing and give you subsidised healthcare.
"If you give more cash into the pockets of individual, once you give it to them, they can decide to go for a holiday nearby or to have a few drinks, is that what you want?"
Instead, they've called on the Government to manage the rising costs of basic necessities like food, healthcare and education.
National University of Singapore sociologist Paulin Tay Straughan said: "It will threaten our stability. In a small nation state like Singapore, it's very hard for us to not see the gains of one sector of society, no matter where you live in Singapore everything is visible. For example when you have a situation where a particular segment can afford and they dictate how the market behaves then it has a direct impact on those who cannot afford."
"I think this will be the challenge for us this year to ensure that the income gap is well managed...I think from my perspective as a sociologist, it's important for us to ensure that Singaporean households that are at the bottom 20 per cent feel that they have a direct gain from the boom of the economy. That as Singapore progresses, that they will be able to see a direct improvement in their everyday life...you have to give Singaporeans optimism about the future. Handouts do not do that."
The latest statistics come just days ahead of the Budget which will be delivered on Friday where the government is widely expected to dish out more more help for low and middle income households to cope with the rising cost of living.
Economists have said that inflation will remain high over the next few months and the government needs to intervene to manage the widening income gap.
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By Imelda Saad | Posted: 14 February 2011 1129 hrs <LINK rel=image_src href="http://www.channelnewsasia.com/imagegallery/store/phpB9Y5H4.jpg">
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Messenger</TD></TR><TR><TD colSpan=4><HR align=left color=#dddddd SIZE=1 width=510></TD></TR></TBODY></TABLE>SINGAPORE: The Department of Statistics (DOS) said the median monthly income from work among resident households increased by 3.1 per cent last year, recovering to a level higher than before the economic downturn in 2009.
It rose S$150 to S$5,000.
In real terms, the increase was 0.3 per cent.
Growth was also higher in smaller housing types, with those in one and two room flats seeing the highest income growth of 7 per cent, compared to just 2.4 per cent for those living in 4-room and larger flats.
The department said this is due to the various government schemes which gave a larger boost to those staying in smaller homes.
Resident households in one- and two-room public flats received an average of S$2,650 per household member while those in three-room flats received an average of S$1,480 per household member.
This was higher than the S$530 per member for those in private properties.
Observers though point out that the percentage change in income growth for poorer households, comes from a much lower base.
Tan Khee Giap, Co-Director of the Asia Competitiveness Institute at the Lee Kuan Yew School of Public Policy, said: "I'm not going to be excited by the fact it's seven per cent. If you look at this you are excited unnecessarily."
Economist from DBS Bank Irvin Seah added: "Even if their income has risen by a relatively larger margin, we should not forget that we're talking about a percentage change from a low base.
"The absolute increment is still far lower than the higher income groups. Moreover, their absolute income level is still way below the national average."
Given that the average inflation rate was 2.8 per cent in 2010, observers said wages for the lower income group are not rising fast enough.
Among households with at least one working person, the average monthly household income from work per member went up by more than 3 per cent in real terms across all income groups.
The increase was bigger for employed households in the 11th to 40th percentile and the top 10 per cent, ranging from 5.0 to 5.3 per cent in real terms in 2010. Among employed households in the 41st to 90th percentile and the lowest 10 per cent, the increase ranged from 3.4 to 4.3 per cent in real terms in 2010.
The Gini coefficient, which is a measure of income inequality, continued to rise.
It crept up to 0.472, compared to 0.471 in 2009.
If government benefits and taxes are factored in, the Gini coefficient was 0.452 in 2010, up 0.004 from the previous year. Benefits include utilities rebates, medical and education subsidies.
Observers said this means subsidies given weren't enough to address income disparity.
However, some cautioned against handing out direct cash.
Mr Tan said: "I'm less inclined for the government to give money directly into the pockets of the low income as subsidies I rather want to see them going indirectly for example paying for your tuition fees, paying for your school uniforms, paying for your textbook, giving you breakfast, giving you subsidies for your housing and give you subsidised healthcare.
"If you give more cash into the pockets of individual, once you give it to them, they can decide to go for a holiday nearby or to have a few drinks, is that what you want?"
Instead, they've called on the Government to manage the rising costs of basic necessities like food, healthcare and education.
National University of Singapore sociologist Paulin Tay Straughan said: "It will threaten our stability. In a small nation state like Singapore, it's very hard for us to not see the gains of one sector of society, no matter where you live in Singapore everything is visible. For example when you have a situation where a particular segment can afford and they dictate how the market behaves then it has a direct impact on those who cannot afford."
"I think this will be the challenge for us this year to ensure that the income gap is well managed...I think from my perspective as a sociologist, it's important for us to ensure that Singaporean households that are at the bottom 20 per cent feel that they have a direct gain from the boom of the economy. That as Singapore progresses, that they will be able to see a direct improvement in their everyday life...you have to give Singaporeans optimism about the future. Handouts do not do that."
The latest statistics come just days ahead of the Budget which will be delivered on Friday where the government is widely expected to dish out more more help for low and middle income households to cope with the rising cost of living.
Economists have said that inflation will remain high over the next few months and the government needs to intervene to manage the widening income gap.
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