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Median household income up last year
By Judith Tan
The New Paper
Saturday, Feb 23, 2013
SINGAPORE - The good news is that her income went up in 2012.
The Department of Statistics' Key Household Income Trends 2012 report released on Wednesday shows this.
But the bad news is she was hit by bigger bills.
Madam Tan Miu Muay's situation is similar to other lower-income households last year.
While the median household income from work has gone up from from $7,040 in 2011 to $7,570 last year - a 2.7 per cent increase in real terms, or after accounting for inflation - those whose earnings put them in the bottom 10 percentile have been hit by higher costs.
That means real income has actually come down for them.
Madam Tan, 42, said the $800 in total which she and her husband bring home a month seems to "flow out much quicker than the year before".
Take her household utilities for example. Madam Tan said her family is under the pre-paid scheme called "Pay-As-You-Use".
"I used to top up the pre-paid card once a month two years ago, but in the last few months, I had to top up the card at least three times a month, even though we were using the same amount of electricity and water," she said.
Madam Tan works part time in the paper industry, while her husband, Mr Chua Chue Po, 40, works part-time moulding cornices.
She said he used to earn $1,200 a month, but due to his failing health, he now works only when his health permits.
They have five sons - the oldest is 19 and serving national service, while the youngest is nine.
"Sometimes when the finances are tight, we cope by eating instant noodles. I would even pick the vegetables thrown out by supermarkets to supplement our meals," she said.
She asked how she could help her kids advance educationally when she couldn't even afford the basics.
Madam Tan's family is not unique.
The Key Household Income Trends 2012 report showed that while the lowest 10 per cent of households saw a relatively strong growth of real income in 2011, it was not the case last year.
After adjustment has been made for overall Consumer Price Index (CPI) inflation, they saw a decline in average household income from work per household member in real terms.
The report also noted that the Gini coefficient, which measures income inequality, increased from 0.473 in 2011 to 0.478 last year.
But after taking into account government transfers and taxes, the figure is 0.459.
Measures
Many measures were introduced in 2011 and last year to help the lower-income households.
They include the New Singapore Shares, Economic Restructuring Shares, and rebates on utilities, rental and service and conservancy charges.
The data also showed that income for the top 10 per cent of households improved by 12 per cent between 2007 and last year. This figure is lower than the 31.5 per cent recorded for the period 2002 to 2007.
Nominated MP Eugene Tan, a law lecturer with the Singapore Management University, said the income gap, whether widening or not, "is something that bears close watching and action to ensure the income gap does not become divisive".
Marine Parade GRC MP Seah Kian Peng, who chairs the Government Parliamentary Committee for Social and Family Development, said that going forward, the Government will look at what needs to be done to help this group in managing their finances.
"I hope to see some of these new outcomes at the coming Budget to further reinforce and maintain this right momentum," he said.
By Judith Tan
The New Paper
Saturday, Feb 23, 2013
SINGAPORE - The good news is that her income went up in 2012.
The Department of Statistics' Key Household Income Trends 2012 report released on Wednesday shows this.
But the bad news is she was hit by bigger bills.
Madam Tan Miu Muay's situation is similar to other lower-income households last year.
While the median household income from work has gone up from from $7,040 in 2011 to $7,570 last year - a 2.7 per cent increase in real terms, or after accounting for inflation - those whose earnings put them in the bottom 10 percentile have been hit by higher costs.
That means real income has actually come down for them.
Madam Tan, 42, said the $800 in total which she and her husband bring home a month seems to "flow out much quicker than the year before".
Take her household utilities for example. Madam Tan said her family is under the pre-paid scheme called "Pay-As-You-Use".
"I used to top up the pre-paid card once a month two years ago, but in the last few months, I had to top up the card at least three times a month, even though we were using the same amount of electricity and water," she said.
Madam Tan works part time in the paper industry, while her husband, Mr Chua Chue Po, 40, works part-time moulding cornices.
She said he used to earn $1,200 a month, but due to his failing health, he now works only when his health permits.
They have five sons - the oldest is 19 and serving national service, while the youngest is nine.
"Sometimes when the finances are tight, we cope by eating instant noodles. I would even pick the vegetables thrown out by supermarkets to supplement our meals," she said.
She asked how she could help her kids advance educationally when she couldn't even afford the basics.
Madam Tan's family is not unique.
The Key Household Income Trends 2012 report showed that while the lowest 10 per cent of households saw a relatively strong growth of real income in 2011, it was not the case last year.
After adjustment has been made for overall Consumer Price Index (CPI) inflation, they saw a decline in average household income from work per household member in real terms.
The report also noted that the Gini coefficient, which measures income inequality, increased from 0.473 in 2011 to 0.478 last year.
But after taking into account government transfers and taxes, the figure is 0.459.
Measures
Many measures were introduced in 2011 and last year to help the lower-income households.
They include the New Singapore Shares, Economic Restructuring Shares, and rebates on utilities, rental and service and conservancy charges.
The data also showed that income for the top 10 per cent of households improved by 12 per cent between 2007 and last year. This figure is lower than the 31.5 per cent recorded for the period 2002 to 2007.
Nominated MP Eugene Tan, a law lecturer with the Singapore Management University, said the income gap, whether widening or not, "is something that bears close watching and action to ensure the income gap does not become divisive".
Marine Parade GRC MP Seah Kian Peng, who chairs the Government Parliamentary Committee for Social and Family Development, said that going forward, the Government will look at what needs to be done to help this group in managing their finances.
"I hope to see some of these new outcomes at the coming Budget to further reinforce and maintain this right momentum," he said.
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