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Poverty in Singapore: A New National Priority

Poverty in Singapore
Despite the enormous wealth present in Singapore, poverty is also a pressing issue within the nation. With the lack of a minimum wage, there is no guarantee that Singaporean citizens have the opportunity to make enough to live on. Leaders within the country, however, are bringing the issue to the forefront of the national conversation. Poverty in Singapore increased by 43.45% in just three years, from 2012 to 2015. Poverty affects the elderly the most, with their rates increasing 74.32% within the same time period. This rapid increase has spurred government officials to address the issue. Various government policies, such as the lack of a minimum wage and restrictions on the withdrawal of retirement money, often receive critiques as possible causes of the growing problem of poverty in Singapore.

PSP Talk

The Progress Singapore Party is a major national political group, that describes itself as the ‘party for the people.’ It supports increased attention toward rising poverty rates. The party’s rhetoric largely focuses on fighting for all Singaporeans, not just elite classes that possess money and power. The party hosted a talk series, PSP Talk, in September 2019 to highlight pressing issues and direct the national conversation. Poverty in Singapore was one of the major topics of discussion during the event. Yeoh Lam Keong, the former chief economist at GIC Private Limited, spoke at the talk series, notably proposing several poverty reforms based on the findings from his research. Keong took the opportunity to emphasize the severity of poverty in Singapore.

“To my shock and horror, I [realized] that the position of the poor in [Singapore] was much worse and much more awful than I [could] imagine,” said Keong about his research.

PSP Talk opened up an opportunity for education and reflection on Singapore’s relationship with poverty and welfare reform. Keong defined three classes of poverty in his presentation– the elderly poor, the working poor and the unemployed poor– to establish an academic understanding of the situation in Singapore. He went on to explain his research-based policy initiatives, which the government could enforce to support its impoverished citizens. Keong’s initiatives included raising funding for the Workfare Income Supplement and Silver Support Scheme, programs that provide funds to those in need, by $500-$600 a month. He argued that this was a fiscally achievable action that would aid the suffering populations of the poor and elderly. Since Keong’s presentation on these policy reforms, the Singaporean government has set up expansions to the Silver Support Scheme. In January 2021, the program will expand its qualifying criteria and increase quarterly payouts by 20%.

Party member Secretary-General Tan Cheng Bok also spoke at the event. Dr. Tan made a public commitment to understanding the complexities of poverty in the nation and working to create solutions. He continued to support this assertion in July 2020 while campaigning for the General Election, pushing voters to elect representatives who ask the “right questions,” and value trust and transparency. After a narrow defeat, Dr. Tan vowed to continue to serve the people on these issues.

Looking Forward

PSP Talk represents a promising step toward addressing the growing rate of poverty in Singapore. The Progress Singapore Party’s decision to highlight poverty at this gathering of academics and national leaders suggests a new focus for Singapore’s government. The party continues to push for increased influence within the government while holding the current elected officials accountable for the needs of all Singaporean citizens.

– Riya Kohli
Photo: Flickr

The Top 10 Need-to-Know Poverty in Singapore Facts


Singapore is seldom thought of as a poor country since the nation ranks fourth in the richest countries in the world; however, the reality is that many Singaporeans live in poverty. For far too many people, poverty in Singapore is a fact of life.

The Top 10 Poverty in Singapore Facts:

1. Singaporeans have to live on $5 a day

Four-hundred thousand Singaporeans live on $5 a day. Singaporeans Against Poverty, the campaign whose concern is “for those in Singapore caught in the cycle of poverty despite our economic success,” began the $5 challenge, where people can pledge money and try to live on a $5 per day budget.

2. Some Singaporeans have no income

A survey from the Housing Development Board showed that one-third of Singaporeans living in one or two room flats have no source of income. Additionally, an Ipsos APAC and Toluna study found that 62 percent of Singaporeans state that their dissatisfaction is a result of their personal financial situation.

3. There is no official poverty line in Singapore

According to Worldbank, there are several reasons to measure poverty: “to keep the poor on the agenda; if poverty were not measured, it would be easy to forget the poor.” Additionally, poverty lines “target interventions that aim to reduce or alleviate poverty,” and finally, measurements help to evaluate projects, policies and institutions that aim to help the poor.

In a Straits Times article, it was stated that Prime Minister Lee Hsien Loong doesn’t believe establishing poverty lines will be helpful as there are great disparities between poor groups in Singapore; each group requires “different sort and scale of help… This cannot be accomplished by a rigid poverty line, he said, which might be polarising and leave some outside the definition of poor.”

4. Singapore’s wealth gap is one of the widest

As noted in the CIA World Factbook, Singapore was ranked 36th out of 150 countries for income inequality in 2016 based on the Gini coefficient, a ratio of highest to lowest incomes. This means that the high-income households are extremely wealthy, while the low-income households are extremely poor. In fact, a Credit Suisse report showed that more than a quarter of the country’s wealth is held by the top 1 percent of the population.

5. The Gini coefficient has begun to decrease

According to the Singapore Management University (SMU) handbook, the government has begun to acknowledge the wealth disparity. Although Singapore is still ranked high for income inequality, the Gini coefficient has decreased in the past two years.

6. Wages fall for low-income households

In the SMU handbook, it was stated that the bottom 20 percent of workers saw a decrease in wages between 1998 and 2010.

7. Singapore is the most expensive city to live in

According to the Economist Intelligence Unit, Singapore was the most expensive city to live in in 2017 for the 4th year running. This makes it increasingly difficult for the impoverished population to afford basic necessities.

8. Increase in cost of goods and services

Likewise, the past three years saw a 13.1 percent increase in goods and services, according to Singaporeans Against Poverty.

9. More Singaporeans are being covered under ComCare

ComCare was established by the Singaporean government in 2005 to provide assistance to needy families who are either unable to work or are currently searching for employment.

As reported in the Ministry of Social and Family Development (MSF), the number of Singaporeans being covered under ComCare grew from 13,479 in 2012 to 18,996 in 2015, but the government claims this is not due to higher poverty levels; rather, it says it’s due to changes to the program.

The Ministry of Social and Family Development has extended coverage so that more families can apply for ComCare.

10. Singaporean government is taking steps towards alleviating poverty

As noted in The Observer, the government has put plans into place to fight poverty. Of these are plans are the goals to reduce the cost of education, to exempt lower-income families from paying taxes and to contribute cash payments to those in need.

These top 10 poverty in Singapore facts demonstrate the acute issues for low-income houses. However, the Singaporean government is making considerable strides to help its people, enough so that these top 10 poverty in Singapore facts may eventually become irrelevant.

– Olivia Booth
Photo: Flickr

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10 Facts About Poverty in Singapore

Top 10 Facts About Poverty in Singapore

When thinking about poverty, Singapore is usually not the first country that comes to mind. However, the country faces many issues that continue to make poverty an increasing problem in the country.

10 Facts About Poverty in Singapore

  1. Poverty in Singapore suffers from a lack of visibility
    Singapore is one of the wealthiest and most well-developed countries in the world, and this is often the side that is seen and thought of. This makes Singapore’s poverty difficult to see for anyone not living in the country.
  2. Singapore has a large inequality gap
    Singapore has the most millionaires in the world, but also has one of the largest inequality gaps in advanced Asian countries, placing second on the list.
  3. 10 to 14 percent of Singaporeans face severe poverty
    Ten to 14 percent of Singaporeans struggle with severe financial issues. These Singaporeans have difficulty affording their basic needs, with hunger being one of the largest factors.
  4. Poverty is an increasing problem in Singapore
    Poverty in Singapore is growing worse with each year. From 2012 to 2015, impoverished families relying on government assistance increased by approximately 43 percent.
  5. Poverty is an issue for the elderly
    Elderly Singaporeans are the group most affected by poverty. In the same timeframe of 2012 to 2015, the number of impoverished people over 60 years of age relying on government assistance increased by approximately 74 percent. This is mainly attributed to government restrictions on withdrawing retirement funds.
  6. Poverty is also an issue for the young
    Singaporeans between the ages of 15 and 34 years of age are the second most affected group. This is mainly caused by low-paying entry-level jobs and a lack of minimum wage laws. In addition, many young Singaporeans struggle to find a job at all, with approximately 5 percent being unemployed.
  7. Many people are trapped in poverty
    Singaporeans born into poverty, especially those from more recent generations, are more likely to stay in poverty even as adults. Those born into more financially well-off families tend to have more success.
  8. Government assistance is not enough
    The government provides financial aid to any family making less than $1,900 a month. The government also provides aid in other forms such as making education more affordable, tax exemptions for impoverished families and more affordable housing. Yet, impoverished families continue to struggle, and assistance does not seem to be alleviating the growing issue of poverty in the country.
  9. As poverty grows, so does the popularity of the ruling party
    Although the issue of poverty in Singapore is worsening at a steady rate, the ruling party in the country is growing in popularity and continuing to win general elections. Many believe that the current party is not doing enough to address the issue.
  10. Singapore receives little foreign aid
    Foreign aid for Singapore has dropped significantly since the mid-1990s, and it receives only miniscule amounts from countries like the U.S. compared to what others are receiving. Even then, the majority of foreign aid that goes to Singapore does not focus directly on poverty issues, and instead on the country’s trade and economy. This lack of aid may be partially due to how hidden much of the poverty in Singapore seems to be.

Although a growing problem, poverty in Singapore remains in the background of the country’s financial successes and development. Because the issue often goes unnoticed by other countries, little aid is being provided, allowing poverty to grow and spread, affecting a variety of Singaporeans in many ways.

– Keegan Struble

Photo: Google

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Poverty in Singapore

poverty in singapore
Singapore has a population of almost 6 million people with a $297.9 billion GDP which is growing at the average rate of 3.9 percent every year. Singapore is one of the richest Asian countries per capita. In 2012, Singapore city was ranked as the sixth most expensive city to live in the world—after cities including Tokyo, Sydney and Oslo. Despite these statistics, one-tenth of Singapore’s population is currently living in poverty.

Today, the income inequalities have become more noticeable than ever. Unlike large countries such as China or India where there is a distinct difference between urban towns and rural villages, Singapore is a small island where both the wealthy and poor live in proximity to each other.

Out of 136 countries considered, Singapore currently ranks the 26th most income disparate. This makes them the second most income unequal country in Asia. According to the Singapore government, over 105,000 families live in poverty. This translates to about one in 10 family homes, or 378,000 people.

While Singapore has the highest concentration of millionaires in the world and has an average per capita income of over $52,000, there are 105,000 families left with $5 to spend per day and 114,000 individual residents making less than $805 per month.

Furthermore, the purchasing power of the poor has significantly dropped. It has been determined that the top 10 percent wager-earning households earn as much as 25 times more than the bottom 10 percent. While the top earners saw their real wages increase, those on the bottom saw their real wages decrease. It is further distressing to realize that the price of goods and services rose by 13.1 percent since 2012.

Poverty in Singapore Today

Singapore had never had an official poverty line to measure the rates of poverty in their country. However, the Singaporean Parliament chose to establish a rough definition after neighboring Hong Kong created guidelines to better identify and take strides towards relieving the financial stress those particular citizens.

Currently, while Singapore has no acceptable measure of poverty, they consider any four person household that makes less than $1,250 per month as somewhat struggling. The $1,250 figure is considered the average a four person household would typically spend on food, clothing and shelter per month.

Much of the country’s poverty is created by the influx of foreign workers taking blue collar jobs that were once held by native Singaporeans. Foreign workers unfortunately mean cheaper labor. There is always a cost to globalization, and this time it has affected Singaporeans in their own home.

Despite the large, wealthy buildings in Singapore, many are often struggling to find affordable housing. Those that cannot make it live in tiny government-owned apartments that are barely bigger than 13 square feet. In those cases, rent is paid to the government according to how much they can afford to pay, children from impoverished backgrounds attend school on fees subsidized by the government and food is provided not by the wages earned but by charitable donations.

While Singapore does not have abject poverty like one would find in various parts of Africa, being unable to afford living in your country is an issue that any government should address and find solutions.

– Christina Cho

Sources: BBC, Singaporeans Against Poverty, Al Jazeera, World Bank
Photo: SMU