Singapore households' income grew faster than expenses over the past 5 years

By Phong Ngo November 28, 2024 | 11:15 pm PT

Singaporean households experienced faster income growth than rising expenses in 2023 compared to five years earlier, aided by government subsidies and changes in spending habits.

According to the 2023 Household Expenditure Survey released on Thursday, average monthly household income increased by 4.1% annually from SGD12,661 (US$9,446) in 2017/18 to SGD15,473 in 2023. In contrast, household expenses grew at a slower rate of 2.8% annually, rising from SGD5,163 to SGD5,931 during the same period.

The survey accounted for earnings from jobs, investments, and government transfers, excluding one-off payments like property sales or lump-sum withdrawals. Government rebates and subsidies played a key role in helping households cope with rising costs.

A view of the skyline in Singapore, Jan. 27, 2023. Photo by Reuters

In 2023, households received an average of SGD6,317 per member in government support, with lower-income groups receiving the most. The lowest 20% income group saw an increase in government support from SGD7,316 in 2017/18 to SGD10,412 per member in 2023.

Housing, food, and transport remained the largest areas of household spending, comprising 63.2% of monthly expenses in 2023, a slight decrease from 64% in 2017/18.

Food spending increased to SGD1,422 per month, with a growing share spent on dining out at affordable venues. Transport spending, however, fell by 8.4%, largely due to lower private vehicle costs. Public transport and ride-hailing expenses held steady at SGD174 per month.

E-commerce activity surged in 2023, with 82% of households shopping online and spending 11.9% of their monthly budget on online purchases, up significantly from 4.7% in 2017/18. Homeownership saw a small decline, with 87.9% of residents owning homes in 2023, down from 89.1% five years earlier.

However, car ownership increased slightly, rising from 35.3% to 36.3% of households. Among the lowest income group, 83.3% were homeowners and 17% owned cars, indicating strong asset ownership among lower-income families.

The survey, conducted every five years, gathered data from households between November 2022 and November 2023, with comparisons to the previous survey conducted from October 2017 to September 2018.