The Department of Statistics released the household income statistics which revealed a persistently-drastic income inequality issue in Singapore. Household income in the top 10% earning S$20,000 and over, increased to 12.1% of the population, while 18.3% of the population earn less than S$1,000 a month. 58% of the households earn below S$8,000 when the median household income is S$8,666. You may view the report here.
Income inequality continue to hover at 0.463, higher than United States at 0.40. The Department of Statistics then attempted to lower the GINI coefficient to 0.41 by “accounting for taxes and government transfers” and calling it “relatively stable”. However, indirect taxes like GST are not accounted for as the poor pay more for GST than what they get back in GST cash handouts in a year.
Singapore’s productivity growth for the year 2015 also registered an overall -0.5%. Despite repeating emphasis on productivity growth by the Singapore government, the Singapore workforce has been reducing annual productivity steadily with a -1.8% in 2014 and -0.5% in 2015. The government has been linearly reliant on increasing foreign labour to increase GDP without progress in productivity.
Lesser foreigners created higher wages for low income Singaporeans