Signup
LoginSingapore income gap widens with economic boom
29 posts
-
-
Singapore income gap widens with economic boom
Melanie Lee
Reuters
12 Nov 07
http://www.chinapost.com.tw/business/2007/11/12/130587/Singapore-income.htm
Carol John, 27, doesn't own a bed. Every night she sleeps on thin mattresses which she shares with her three young children. Outside her one-room flat, a smell of sewage lingers in the common corridor.
Just a few kilometers away, on Singapore's Sentosa island, Madhupati Singhania relaxes on his US$435,000 yacht berthed at the city-state's swanky One 15 Marina Club.
Income inequality is nothing new in free-market Singapore, but two years of blistering economic growth and a government policy of attracting wealthy expatriates have created a new class of super-rich, while a string of price increases for everything from bread to bus fares have made life harder for the poor.
"I can't save anything, it's so difficult for me," John told Reuters. John, who is unemployed, relies on her husband's S$600 (US$420) monthly salary and a S$100 government handout.
"We don't benefit at all from the economy. As far as I know, my husband's pay hasn't gone up," she said.
Singapore's economy is firing on all cylinders, with a booming construction sector, record tourist arrivals and a fast-growing financial sector all contributing to a gross domestic product set to grow nearly 8 percent in 2007. But the rising tide is not lifting every boat.
The proportion of Singapore residents earning less than S$1,000 (US$690) a month rose to 18 percent last year, from 16 percent in 2002, central bank data released late last month show.
At the same time, the proportion of those earning S$8,000 and above rose from 4.7 percent to 6 percent in the same period.
"When a country becomes richer, you tend to see a widening of income inequality. Over the last few years it has been worse," said econometrics professor Anthony Tay at SMU university.
Despite sporting a first-world GDP per capita of US$29,000 - second only to Japan in Asia - Singapore has an income inequality profile more in line with third-world countries. Singapore's Gini coefficient, a measure of income inequality, has worsened from 42.5 in 1998 to 47.2 in 2006, and is now in league with the Philippines (46.1) and Guatemala (48.3), and worse than China (44.7), data from Singapore's Household Survey and the World Bank show.
Other wealthy Asian nations such as Japan, Korea and Taiwan have more European-style Ginis of 24.9, 31.6 and 32.6. CIMB-GK Research economist Song Seng Wun believes that growth itself partly explains the widening income gap.
"In an environment where growth is huge, there are lots of opportunities for risk takers, and inevitably, you will get this widening (of the income gap)," he said, adding that those in stable jobs will also benefit, but to a lesser extent.
Opportunity is what attracted Singhania to Singapore. He intends to buy a new 47-foot yacht for US$1.3 million.
"You've got everything you want in Singapore. You want to buy a fast car, you want to buy a big boat, you want to buy an aeroplane, whatever you need, you can get in this country."
-
-
-
Originally posted by kramnave:Lets see how the workfare bonuses work out for those with lower income. They wouldn't qualify though..think minimum age 35.
yeah, I'm hoping this Workfare thingy would help the lower incomers...
cost of necessities in 2008 is going to be high... even now, a simple bowl of Mee Pok has increased by 50cents..
-
-
-
3rd world Government for a 1st world people?
http://consumer-protection1.blogspot.com/2007/11/reuters-singapore-income-gap-widens.html
-
-
-
Originally posted by enblockvictim:3rd world Government for a 1st world people?
http://consumer-protection1.blogspot.com/2007/11/reuters-singapore-income-gap-widens.htmlSad to say that the poor woman and her husband has 3rd world mentality and make 3rd world decisions...
-
She is of the same age as me, perhaps her husband as well. I don't know what he has done or perhaps what he has not done to be earning $600 per month. Then they have 3 kids when they can't afford it and presumably she is unemployed because she has to take care of them. LPPL right ? Work as security, waiter, waitress all low barriers of entry and i'm sure they can earn more than the $600. Unless of course severely uneducated or what i don't know. Hopefully its not a cycle and their children end up like them in future...
If older workers retrenched cannot find same job then end up with crap salary with another job then fair enough. These young people, things they do, i don't understand.
-
-
-
Originally posted by elindra:She is younger than me but looks older than my mum
Think they posted a picture of an elderly woman for greater impact
-
Carol John, 27, doesn't own a bed. Every night she sleeps on thin mattresses which she shares with her three young children. Outside her one-room flat, a smell of sewage lingers in the common corridor.
I wonder whats with the smell of sewage though...
-
-
-
Originally posted by HyperFocal:yeah, I'm hoping this Workfare thingy would help the lower incomers...
cost of necessities in 2008 is going to be high... even now, a simple bowl of Mee Pok has increased by 50cents..I thought our P4P leaders each with their $4 million dollar salaries has great foresight and intelligence.
How come they didn't see this coming and prevented it's occurence?
Maybe their crystal ball no longer works.
-
-
-
Originally posted by kramnave:another classic story of having many children when you can't afford it..
Agreed ! They have a choice in pro-creation. But not the kids ! Not a single baby had the choice to be born or not.
Please, all breeders out there, this world is already over populated and stop giving a 10 step backwards start for your spawns. Your bloody poverty cycle will never end.
How much hatred and shame these kid must have towards their useless parents.
Good grief
-
-
-
Originally posted by wisefool83:hmmm.......John is a female? Typo? Same-Sex marriage? Or John as in Joan?
"Carol John, 27, doesn't own a bed. Every night she sleeps on thin mattresses which she shares with her three young children. Outside her one-room flat, a smell of sewage lingers in the common corridor.
Just a few kilometers away, on Singapore's Sentosa island, Madhupati Singhania relaxes on his US$435,000 yacht berthed at the city-state's swanky One 15 Marina Club.
Income inequality is nothing new in free-market Singapore, but two years of blistering economic growth and a government policy of attracting wealthy expatriates have created a new class of super-rich, while a string of price increases for everything from bread to bus fares have made life harder for the poor.
"I can't save anything, it's so difficult for me," John told Reuters. John, who is unemployed, relies on her husband's S$600 (US$420) monthly salary and a S$100 government handout. "
This kind of explains the level of your logic.
You have wasted your parent's money furthering your education overseas.
Edited by maurizio13 13 Nov `07, 10:33PM
-
-
-
Originally posted by maurizio13:
"[b]Carol John, 27, doesn't own a bed. Every night she sleeps on thin mattresses which she shares with her three young children. Outside her one-room flat, a smell of sewage lingers in the common corridor.
Just a few kilometers away, on Singapore's Sentosa island, Madhupati Singhania relaxes on his US$435,000 yacht berthed at the city-state's swanky One 15 Marina Club.
Income inequality is nothing new in free-market Singapore, but two years of blistering economic growth and a government policy of attracting wealthy expatriates have created a new class of super-rich, while a string of price increases for everything from bread to bus fares have made life harder for the poor.
"I can't save anything, it's so difficult for me," John told Reuters. John, who is unemployed, relies on her husband's S$600 (US$420) monthly salary and a S$100 government handout. "
This kind of explains the level of your logic.
You have wasted your parent's money furthering your education overseas.
[/b]You obviously still haven't gotten over our previous engagement. Kan Kai Yi Dian Ba.
-
