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Leong Sze Hian
I refer to the report “Average monthly household expenditure for 2007/08 up 2.7per cent vs 2002/03 (CNA, Dec 2).
How many poor people are there in Singapore?
I believe we have never done any detailed studies on the poverty line, or who are those in poverty.
Well, the Department of Statistics’ Report on the Household Expenditure 2007/08 released on 2 December, may offer some clues to the answers to these questions.
Although this may be somewhat arbitrary, we could set some parameters to help us interpret the data. Let us define households with a monthly income below $1,000 as ‘poor’, and those earning between $1,000 to $1,999 as ‘relatively poor’.
Let us also note that for households within the 1st – 20th and 21th – 40th income quintiles, Housing and Related Expenditure took up the highest proportion of their total expenditure. As such, their disposable income (after paying for housing) may be much less than their total income.
The total number of households in 2007/08 was 1,091,339.
By the above parameters, 9.7 per cent (105,965) of total households can be considered ‘poor’, while 10.6 per cent (116,092) fall into the ‘relatively poor’ category.
11.7 per cent of total households spend below $1,000 a month, while 19.9 per cent of total households spend between $1,000 to $1,999 a month.
In the past decade, the bottom 20 per cent of households by income have had to increase their spending.
In 2007/08, this bottom 20 per cent consisted of 218,280 households. They spent an average of $1,760 per month.
This represents an increase from $1,693 in 1997/08 and $1,690 in 2002/03.
Thrifty elderly?
The elderly seem to be able to spend less and earn less, as they get older.
For example, out of 78,116 households whose Main Income Earner is aged 65 and over, just over half (50.3 per cent) spend below $1,000 a month.
58.2 per cent of such households earned less than $1,000 a month.
Of the 45,197 households whose main income earner is aged between 60 to 64, over a quarter (25.9 per cent) have a monthly expenditure below $1,000.
Within this category, 27.1 per cent of households have a monthly income less than $1,000.
Spending more while earning less
The report’s Key Findings – Household Expenditure, says that even the lowest 20 per cent of households had to spend more over the last few years – their expenditure grew at 1.1 per cent per annum from 2002/03 and 2007/08.
In 1997/8, the Average Monthly Household Expenditure (AMHE) of this lowest 20 per cent of households was $1,693.
This figure fell to $1,670 in 2002/3, but increased to $1,760 in 2007/8.
What this means is that AMHE for this group actually declined by 0.3 per cent per annum from 1997/8 to 2002/03, and increased by only 0.4 per cent per annum from 1997/08 to 2007/08.
But to put this in perspective, we can compare the above numbers to the Average Monthly Household Income (AMHI) for the same group – the lowest 20 per cent of households.
In 1997/8, this group’s AMHI stood at $1,309. By 2002/3, it had fallen to $1,104 – a decrease of 3.4 per cent per annum.
Although it was to climb to $1,274 in 2007/8, the AMHI for these households still went through a decline by 0.3 per cent per annum from 1997/8 to 2007/8.
So, they earned less, but had to spend more.
More startlingly, we can see that, throughout this period, the income for these households could not cover all their expenditure.
In 1997/8, their income only accounted for 77 per cent of their expenditure. This fell to 66 per cent in 2002/3, before rising to 72 per cent 2007/08.
Finally, consider this statistic – 105,965 households earn below $1,000 a month. Against this backdrop, there are currently only 26,000 families receiving financial assistance from the Community Development Councils and only 3,000 receive help under the Public Assistance Scheme.
Related posts:
- More poor people helped with less money?
- Uniquely Singapore: Charity – F1 or F9? Helping the poor?
- Uniquely Singapore, F1 or F9: Means testing to help the poor?
- Uniquely Singapore, F1 or F9 – helping the poor?
- A closer look at Budget 2007
If 106,000 households are poor and only 26,000 households received financial asistance from CDC, than why aren’t the remaining 80,000 households being helped despite billion of dollars collected thru GST and various charities at work for the last few years? Than the answer of where the money goes might not be too far fetched if we combine the yearly income and perks of our ministers earned – how many billions went into their pockets? Some funds in CDC could have easily helped a small fraction of the 80,000 households if we did pay the staff 8-months of bonuses.
“I believe we have never done any detailed studies on the poverty line, or who are those in poverty.”
Didn’t Pinky PM said that “Hiking GST is used to help the poor ?”. So where is the statistics Pinky used to justify the GST hike for the poor comes from ? Without detailed studies that yield the statistics, how did Pinky and his clowns make decision for GST increment ?
Why does this government, helmed by “world-class” paid ministers, who purport to be of the people, for the people, govern in a non-transparent, non-accountable manner that gives rise to so many questions in so many issues? Key figures (costs of HDB flats, country’s reserves, GIC and temasek’s losses, etc) are secrets. Only large countries like the US can “afford” to be transparent while a city like Singapore cannot do so? Uniquely Singapore! Vote for change! Merdeka!
Singapore really needs people like Mr Leong to stand up for the people.
This election will be very different due to the change in population size and rule changes.
I beg talents to step forward now as its now or never. i mean what if no opposition win any seat? i for one will not be able to take it.
Remember, this election is different than the past election as the population has changed drastically.
This election will be different,hopefully our fellow Sporeans are in the right state of mind to vote for the right people into power,i don’t care if the candidate is a law,science,banking & finance,doctorate holder,PR,etc….he or she must be a competent voice for the people,by the people,a people’s champ,that is what i am looking for,i wonder how many people who are struggling or rather fellow Sporeans who can’t afford to have 3 meals a day,a roof over their heads,a proper job with stable income,a school to go for the kids,the list goes on…time has come,S’poreans need a change in their mindset,times have changed,have we changed to make the right decisions?We have to create a better future,a greater tomorrow,a new dawn in the making,i have taken the red pill a long time ago,i am not Neo,just Connor,John Connor,a resistance fighter for human rights,if you are reading this,welcome to the Resistance!
We have a world-class salaried minister questioning the wisdom of increasing $20 for those receiving state welfare so that they can choose to eat chicken rice at a kopitiam or at a restaurant.
Later, he allocated $20M for any social projects for welcoming and integrating new immigrants to the neighbourhood.
There is just no doubt that the bottom end of town are doing it hard. Inflation by Singapore standards especially has been very high in recent times. Wages have come down in dollar terms, never mind real terms.
Nearly 20 years ago I saw a sign in a shop window which said “Shop assistant wanted. $1200 a month.” 20 years ago! What do shop assistants earn these days – for longer hours?
I am still curious about the 300,000 plus Singaporeans (out of around 1.9 million) who are working but who do not have any money AT ALL going into their CPF. It is compulsory for employers to put money in once the wage exceeds $50 a month. Why is the MOM or Government not concerned about it ie employers who are breaking the law?
Perhaps Leong can look into it and enlighten all of us.
After all, we hang druggies and jail those who mistakenly harbour illegal immigrants because they happen to rent a room out to a foreign worker who turns out not to have a valid visa. The legislation will not affect the top end of town one iota as none of them will ever be renting out a room to a foreign worker to get some money for food and other essentials.
7-eleven salesman /sales girl only get $4 /hr. are u sure Singapore can be considered as a world class country ?
I like this last paragraph :
“Finally, consider this statistic – 105,965 households earn below $1,000 a month. Against this backdrop, there are currently only 26,000 families receiving financial assistance from the Community Development Councils and only 3,000 receive help under the Public Assistance Scheme.”
The only possible way I think policy makers can explain this discrepancy is the remaining (105965 – 26000) families have sizable assets (e.g. property assets, with relatively negligible liabilities, including loans and deferred taxes). If this is not the case, then some policy maker is clearly not doing his job.
While over 100,000 of our fellow Singapore citizens are living in poverty and earning less than $1000 per mth, our SAF regulars are each earning several thousands a mth, with the promise of over $500k upon their retirement at 50 years old. Some of these fellow Singaporeans served their NS in the SAF and are only given meagre allowance that they can hardly support their family.
This is an irony as the deterrence value of SAF comes from the commitment of the NSmen to the defence of Singapore. Hence, Reform Party is definitely right that defence spending and taxes should be cut.
what about households who earn above $2000 but with huge liabilities? can they also be considered poor? they are only capable of creating problems and corrective actions for the problems they created.
To Mr Leong:
“Finally, consider this statistic – 105,965 households earn below $1,000 a month. Against this backdrop, there are currently only 26,000 families receiving financial assistance from the Community Development Councils and only 3,000 receive help under the Public Assistance Scheme.”
Do the 105,965 households include retiree households that do not rely on working income?
Citizen Soldier,
This may surprise you, our cabinet ministers have pension plan for them after their retirement.
These are the people receiving top dollar every month and refusing minimum wages for low income workers.
VOTE FOR A CHANGE !
VoteforChange – do you know some of them are actually receiving both pension and salary because they are still working pass the mandatory retirement age?
And then there’s also bonus…
damn! i am certainly dieing for change. i can’t wait for that moment. bring it on man!
Thks Sze Hian, these are really astonishing data.
the HDB Flat is the Cheapest home a citizen can buy. what else is cheaper? Condo?
Bungalow?
For citizen leh!
Ironically, in my view, it is a very expensive public, subsidised housing.
18) Mah Chock Song
You do not buy a HDB flat in Singapore. Even if you can afford the $60,000-$100,000, you are only the “lessee”
The flat you think you own still belongs to the government. It is not yours.
#19 Economist is correct.
Legally, citizens own not the HDB but a lease. They are technically the LeaseHolders.
That is why i think they using a term called ‘lease buyback’.
Though highly educated and internet savvy many singaporeans still do not understand this simple fact. Many if not most even do not analyse the news and compare with alternative reportings and seek info from social political blogs or engage in discussions.
Many don’t even know about the policies already implemented.
They will say – ‘U MEAN THERE ARE POOR/NEEDY PEOPLE IN SINGAPORE?’
They will say – ‘U SEE I M GETTING A 18,000 bucks MONTHLY MP ALLOWANCE N A 1,000,000 plus bucks SALARY; SO U SEE, CANT BE SINGAPORE HAS POOR/NEEDY PEOPLE.
Read below blog about poor/needy ppl in Singapore
http://happyangelclub.wordpress.com/
Read this blog n u will know there awre many poor / needy ppl in Singapore.
A slight sidestep here, but with all the talk about vote for change and all, has anyone really taken into consideration the recently reiterated point on making the required changes to “allow x-number of opposition seats” and the real meaning behind it?
@23) MadHatter
All I know is the need to have checks and balance, and not absolute power to one party.
Now we know why that the poor n needy n disabled are LEFT ASIDE N NOT GIVEN HELP, EVEN BY THEIR MP, despite “No One Will Be Left Behind”
WELL, I guess to them ” IT IS RIGHT ” that the poor n needy n disabled are left aside despite “No One Will Be Left Behind”
ST 7 Dec-
LEADERS must have the conviction to do what is right and not what is popular, even if taking that path may not win them political points, said Deputy Prime Minister of Singapore Wong Kan Seng on Monday.
Mr Wong, in a luncheon address to think tanks and business leaders about what makes good governance and strong leadership, said leaders may find they have the platform and momentum to drive difficult reforms in a crisis.
But it becomes less easy to pursue and persist with tough reforms when the crisis is over and the economy is on the mend, added Mr Wong, who is also the Minister for Home Affairs.
He was speaking at the fifth Asia Economic Summit on Monday, an event that brings together leading strategic thinkers, government officials and corporate chiefs from the region to brainstorm and discuss the strategic challenges Asia face and the prospects ahead.
The minister said businesses and employees would be reluctant to see the withdrawal of temporary support measures put in place during the downturn. They might also be wary of moves to tighten credit and strengthen corporate governance.
‘In such a situation, leaders must have the conviction to push through what needs to be done, rather than what is politically expedient or populist,’ Mr Wong said.
–No One Will Be Left Behind –
http://news.asiaone.com/News/NDP+Rally+2007/NDP+Rally+2007.html
As the oldman would say. “Never mind your poor and needy in singapore, you need them…without them we cant be rich!”
It seems that 5 room owners should live comfortably with 8K household income and condo owners 16K.
My question is what happens to those between 8K to 16K?
Unfortunately i belong to this category (10K+)….
I think i am the really pitiful group where i have no home, cannot get married and does not qualify for government help.
Can we have some sort of schemes to help people in this group?
There will ALWAYS be poor people no matter where you go. These are opportunities for the rich to do good. 70 years from now, how many of us will still be around or still able to put our money to good use? NONE.
The thing is the rich should not flaunt their riches because what they have is really not theirs. Do you own your life? No, you don’t. If you do, you would be able to stop it from leaving you. But you can’t. We will all lose our lives. What less with money???
It is sad to see people striving to have MORE money to have better lives, but in their attempts lose the very lives they want to improve. We should all learn to be content with whatever little/much that we have. Life is more than just food/clothing/house/cars.
“Don’t die as though you’ve never lived, nor live as though you’d never die.” – Doraemorn
doraemorn@yahoo.com