Society & economy

Poverty threshold in Singapore

The Lien Centre for Social Innovation published a report on inequality in Singapore that offered an unprecedented look at the state of Singaporean society. The study sparked debate by revealing a worrying reality in a country known for its economic dynamism and prosperity.

4 min read By SG-JOBS.com

Key Figures

~20%of households live below 50% of the median income

140,000households could be considered poor, according to an alternative estimate

1,200–1,500SGD per month per household: the poverty line used in that estimate

The Gini Coefficient: An Alarming Indicator

According to the report, Singapore ranks among the most unequal developed nations, ahead of the United States and several European countries. Income inequality has soared since the 2000s, making Singapore a striking example of widening disparities.

Income inequality is often measured with the Gini coefficient, which assesses how incomes are distributed across a population. In Singapore, this coefficient rose from 6.1 in 2000 to 7.8 in 2012, a worrying widening of the wealth gap. Over the same period, the United States, France and Norway saw much smaller increases.

A Troubling Concentration of Wealth

What makes the situation even more worrying is how quickly inequality has grown. The richest 1% of Singaporeans alone hold a quarter of the national wealth, an unprecedented concentration of wealth in the country.

The Hidden Face of Poverty

Absolute poverty is a very real issue in Singapore. By some estimates, around 14% of Singaporean households are affected by this extreme form of deprivation. Yet these figures understate the reality, as they only count people receiving official public assistance.

An alternative estimate by Jacqueline Loh suggests that up to 140,000 Singaporean households could be considered poor if the poverty line is set between 1,200 and 1,500 SGD per month per household. They include:

The unemployed

People without work and without a stable source of income.

The working poor

Workers whose income is not enough to cover their basic needs.

Retirees

Older people facing growing financial difficulties.

Relative Poverty: A Complex Reality

Beyond absolute poverty, the report highlights relative poverty, which reflects a lack of access to services and opportunities. Around 20% of Singaporean households live below 50% of the median income, which significantly limits their access to essential services:

Education

Healthcare

Transport

Towards Awareness and Political Action

The report underlines the need for urgent action on growing inequality in Singapore. Social policy must tackle these issues head-on, narrowing wealth gaps and ensuring fair access to opportunities for every citizen.

Inequality in Singapore is a complex issue that calls for a multidimensional approach. This report provides a solid basis for reflection and action, with the aim of building a fairer and more inclusive society for all Singaporeans.