Singapore’s income inequality declined in the past five years: MOF

But low income citizens still battle rising living costs.

Although incomes are rising and income inequality is narrowing down, the Ministry of Finance (MOF) stated that domestic cost pressures and rising living costs remain the key challenges in empowering lower-income Singaporeans.

According to the MOF’s Singapore Public Sector Outcomes Review 2014, income inequality has fallen in Singapore in 2013, with the Gini coefficient pegged at 0.412 after taxes and transfers, down from 0.434 in 2012. The Gini coefficient has a scale of 0 to 1, where 0 indicates perfect income equality and 1 indicates perfect income inequality.

The study has also stated that the Government’s efforts in economic restructuring and lifelong learning have contributed to income growth for lower- and middle-income Singaporeans.

“In addition, we are providing further support for those at the lower end of the income ladder through
government transfers. Together with Singapore’s progressive fiscal system, we have been able to lower income inequality, as measured by the Gini coefficient. However, domestic cost pressures and a rising cost
of living remain key challenges going forward,” noted the study.