By Ryan
Ong | MoneySmart – Wed, May
1, 2013 12:00 AM SGT
Income inequality measures how much richer the rich are, compared
to the poor. It’s a polite term economists created, to replace:
“Here’s how far the poor are from ramming sharp objects in your
face”. And in Singapore, that distance seems to be…let’s see…oh
okay. You all enjoy this infographic, while I book an emergency
flight to Mali.
Overall, the top 10% of Singapore households had incomes of $10,543
per member. The bottom 10% had earnings of $422 per member.
(You can see more figures from the Singapore Department of Statistics)
Note that the top 10% earns almost 25 times the
bottom 10%.
The disparity seems mostly related work qualifications. Unskilled
Singaporeans can only sell their labour, but they can’t compete
with mass imports of cheap foreign workers. So anyone who
believesall Singaporeans “don’t want” blue collar
jobs anyway…go tell that to these people.
Preferably from a distance, and with a good helmet on.
The low income group makes about $800 to $1,500 a month. Mind you,
there are some who earn far less than that. Either they’re not on
the record, or have variable incomes (e.g. odd job workers).
The middle income earners make between $3,500 to $5,500 a month.
For more on this wide ranging group, you can look up the Ministry
of Manpower’s reports on wages). You should probably
do that anyway, to make sure you’re not getting ripped off.
High income earners (company directors, senior management, etc.)
tend to earn between $11,500 to $16,600 per month.
The absolute top earners can be calculated from our
Ministers’ incomes.
Ministers’ salaries are good for this, because they are pegged to
the 1,000 highest earners, minus 40%*. Why 40%? Because it
exemplifies the sacrifice required of political service. Imagine
that: Having to drink lower grade Bird’s Nest, and have only one
lunch in Paris a week.
Anyway, the typical Minister is paid around $124,558 per month (the
Prime Minister gets about double that). Add on 40%, and it suggests
our top earners are looking at figures of about $174,381 per
month.
*Pay Package of Top Civil Servants and Ministers Down 22%,
Straits Times, 27 Nov. 2009
Due to the huge income divide, it can
feel like we’re two different countries in one island. And I
know when rich people talk, it sounds like a canary giving a
goldfish pointers on flying.
But don’t let it get to you too much. Follow us on Facebook so we can
help you make some money, and bring your friends
along. The game may not be fair…but doesn’t mean you still can’t
win.
