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Singapore’s real median income sees 4.5% drop amid inflation woes

In Singapore, real median income fell 4.5% in the first half of 2023 compared to the same period in 2022, as reported by Zaqy Mohamad to Parliament, citing “elevated inflation and a weaker economic outlook” as the primary reasons. Despite this, nominal median income rose by 0.9%.

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Singapore’s real median income has witnessed a 4.5% fall in the first half of 2023, a stark contrast to the growth observed in the past five years. Senior Minister of State for Manpower Zaqy Mohamad, addressing the Parliament on the economic challenges, highlighted that “the decline, based on preliminary estimates, was due to elevated inflation and a weaker economic outlook.”

While nominal median income showed a slight uptick of 0.9%, the inflation-adjusted real income presents a more concerning picture. The current economic climate has overshadowed the 9.4% real median income growth from 2017 to 2022, which had successfully surpassed inflation rates.

In his parliamentary address, Mr Zaqy responded to MPs Edward Chia Bing Hui and Saktiandi Supaat on wage growth concerns, particularly emphasizing the plight of vulnerable workers. He reassured that “lower-wage workers have experienced good real income growth over the last five years,” with real income at the 20th percentile climbing 15.4%, exceeding the 1.8% annual growth at the median.

The government’s response to the inflationary pressure has been prompt, with the introduction of a “S$1.1 billion cost-of-living support package in September,” as stated by Mr Zaqy. This package is aimed at providing immediate relief through “cash payouts, Community Development Council and public transport vouchers, as well as rebates for eligible Singaporeans and households.”

Furthermore, the National Wages Council has been proactive, with Mr Zaqy highlighting their recommendation for employers to “consider a one-off special lump sum payment to workers, recognizing the impact of high prices.”

On the productivity front, Mr Zaqy pointed out that the government is focusing on Industry Transformation Maps to “transform businesses and upskill workers for jobs of the future across the economy.” He also cited the progressive wage model expansion, which is set to ensure that workers “can expect cumulative wage increases of up to 80 per cent by 2028.”

In September, core inflation, which provides a more accurate representation of the average Singaporean household’s regular expenses by excluding private transport and accommodation costs, stood at 3.0% year on year. This marks a reduction from the 3.4% recorded in August.

However, the overall Consumer Price Index (CPI) for All Items indicated a slight rise, reaching 4.1% year on year in September, up from 4.0% in August.

This increase was predominantly propelled by soaring private transport inflation, catalyzed by record certificate of entitlement (COE) prices, which counterbalanced declines in core and accommodation inflation.

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There you go, so is it convincing when Chee Hongtat says that COE raises have nothing to do with private hire companies and foreigners? If the raise is nothing to do with them, is Chee trying to imply that the raise in COE is the fault of locals even when there is a fall in local salaries?

When you go overseas, you will observe countries which is growing, majority of its citizens are prospering, happier, buying bigger homes and cars.

But in Singapore, when GDP expanded for years, the citizens like getting poorer and poorer. Only the rich and newly imported rich ate getting better and richer.

Remember in the 1990s when Singapore were more prosperous, HDB stopped building 3-RM HDB flats because then there’s no demand as people buying bigger HDB flats. Back to now, our GDP is much much stronger but people are getting poorer and poorer, except the rich and Neely imported rich. Why?

Last edited 6 months ago by Singapore Fooled Again n Again

That’s totally impossible !!!
Coz Lawless Wrong recently said: “This little red dot is shining brighter than ever!
Unless … HE LIED?

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