Poverty in Singapore reached worst ever, jumped 43.45% in 3 years

April 22, 2017

In the latest statistics provided by the Ministry of Social and Family Affairs (MSF), families living in poverty and relying on ComCare assistance jumped 43.45% in the three years between 2012 and 2015, from 20,572 families to 29,511 families. No statistic was given for 2016, but this is the worst poverty result ever officially reported in Singapore.

Elderly above the age of 60 are the most afflicted with a 74.32% jump. This is largely due to the low interest rate and new government restrictions on withdrawal of CPF retirement money.

Graphic from Straits Times

Poverty among younger Singaporeans – aged between 15 and 34 – has also worsened with 41,500 earning below S$1,000 a month as of June 2016. Unemployment rate is 5% for Singaporeans under the age of 30, double that of other age group according to the Ministry of Manpower.

Despite growing poverty, the Singapore ruling party government enjoy higher popularity ratings among Singaporeans. The country’s most recent general elections saw the ruling party winning with a 69.9% majority. There is no Minimum Wage and low income jobs, except for construction workers and domestic helpers, are largely taken by Singaporeans. Well-paid PMET jobs are taken up foreign degree holders, many of whom are fresh graduates from India and China.

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.

1. 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