06 July 2006

Income inequality widens markedly

One in three Singapore households had less income in 2005 than in 2000, a government survey showed. In the same period, the top 10 percent of households saw their income increase by nearly 15 percent. Full essay.

5 comments:

Anonymous said...

I would definitely agree that the income gap has widened, based on anecdotal evidence.

However, one thing I would like to point out is a better measure of the equality of wealth would be the average net assets (assets minus liabilities) of individuals or households. Note: some measures exclude primary residence in the assets.

This measure will be more accurate especially with an aging population, where retirees have no income but potentially large amounts of income-generating assets (especially those with capital gains, which are not reported in tax returns). Unfortunately, I'm not sure if the data is available

Clement Song said...

Besides globalisation, economic competition from low cost countries, etc... there is another reason the MSM & PAP would rather not highlight. Our brilliant ministers in order to meet their financial KPIs to justify their million $ salaries had been outsourcing many low level tasks to private contractors. Examples are the school servants/cleaners, parking attendants, security guards etc who used to work for the MOE or stat boards. Outsourcing simply means retrenching such workers, who invariably fall within the first 3 decile, only to be re-employed by private contractors if they are lucky, to do the same tasks they used to do for the last umpteen years. The rub is they have to accept a lower pay or slink away penniless to join the ranks of the first decile. They are lowly educated & the most vulnerable in our society, unable to fathom the true cause of their miserable fate. Then come election time, mired in poverty, the PAP mercifully dispenses a Progress Package to uplift their spirits & clear their minds so that they can, once again, make the right choice at the ballot box, to ensure more good years. For whom, I wonder?

Anonymous said...

This is the result of our SUCKING sinful gov.... just like the way NKF blowing up their coffers to justify for themself high $alaries.

Anonymous said...

Great article.

Don't recall this being reported in our papers but Singapore's cost of living has gone up while the quality of life still lags at 30+ placing worldwide.

http://www.mercerhr.com/attachment.dyn?idContent=1216315&filePath=/attachments/English/QOL_Survey2006_table.pdf

http://www.mercerhr.com/attachment.dyn?idContent=1231390&filePath=/attachments/English/Mercer_Cost_of_living_2006_summary_table.pdf

Guess its going to be rough.

Anonymous said...

I had read the article but could not recall the base of computing the wages. Is it real (adjusted for inflation) or absolute earnings figure? How about employer CPF? There had been a sharp drop in this component of our wages over the past 5 years (lowered to 13%, reduced cap from $6,000 to $4,500 for example) and if these had not been considered in the study and are taken into consideration, the drop would be more widespread than what has been reported.