S’pore households earned more than they spent over the past five years: Govt survey
Published on
29 Nov 2024
Published by
The Straits Times
SINGAPORE – The average household here earned more and spent more in 2023 compared with five years before, but income grew at a faster rate than expenses, suggesting that families’ financial situations have improved over time.
The Household Expenditure Survey 2023 found that the average monthly household income in Singapore rose by 4.1 per cent a year between 2017/18 and 2023, from $12,661 to $15,473.
Meanwhile, average monthly household expenditure increased by 2.8 per cent a year, from $5,163 to $5,931, over the same period.
The results of the government survey, which is conducted every five years, were released on Nov 28.
Households were polled over a one-year period from November 2022 to November 2023. The last survey was done between October 2017 and September 2018.
On a per household member basis, average monthly household expenditure rose 3.1 per cent per year to $1,986 in 2023, from $1,704 in 2017/18.
The average monthly household income per member rose 4.1 per cent per year, from $4,246 in 2017/18 to $5,197 in 2023.
The analysis defined household income as regular earnings from jobs, investments, rental income, government transfers, contributions from people outside the household, and – for the first time – interest from Central Provident Fund balances.
However, one-time payments, such as property sales or windfalls, non-recurring insurance payouts and lump-sum CPF withdrawals were excluded.
Government transfers, including rebates and subsidies, helped to supplement household income and enabled the average household to cope with rising expenses.
In 2023, households received an annual average of $6,317 in government transfers per household member, with households in the lower 60 per cent of income earners receiving more support.
Households in the lowest 20 per cent income group received an annual average of $10,412 per person in 2023, $3,096 more than what they received in 2017/18.
Those in the 21st to 60th percentile income groups received an average of $5,957 to $7,711 per household member, compared with $3,970 to $5,311.
The survey also found a shift in lifestyle preferences.
Housing, food and transport topped the list of household expenses in 2023. They collectively accounted for 63.2 per cent of monthly household expenditure in 2023, compared with 64 per cent in 2017/18.
The average household spent $1,422 on food every month, with 67.9 per cent – or $966 a month – of that spent eating out. This is up 19 per cent from $810 in 2017/18.
While people spent more dining out in general, they continued to frequent more budget-friendly options, with households spending an average of $491.40 at hawker centres, coffee shops and foodcourts.
Spending on transport each month fell to an average of $951 in 2023, a drop of 8.4 per cent from $1,038 in 2017/18.
The decline was primarily driven by a drop in spending on private road transport, which fell to $678 in 2023, while spending on bus, train and taxi or private-hire car services remained relatively unchanged at $174.
Significantly more embraced e-commerce, with 82 per cent of households shopping online in 2023, up from 60 per cent in 2017/18.
On average, 11.9 per cent of monthly household expenditure was spent on online purchases, a sharp increase from 4.7 per cent five years earlier, with more households ordering goods such as clothes and groceries in 2023.
In terms of assets owned, the survey found that 87.9 per cent of Singapore resident households owned their homes in 2023, slightly lower than the 89.1 per cent in 2017/18.
The proportion of households with cars was 36.3 per cent in 2023, slightly higher than the 35.3 per cent in 2017/18.
Among the lowest 20 per cent income group, 83.3 per cent of households were home owners and 17 per cent had cars.
Source: The Straits Times © SPH Media Limited. Reproduced with permission.
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