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
believes all 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.
