‘Good progress’ made in uplifting incomes of low-wage workers: MOF report
Tessa Oh
THERE has been “good progress” made in uplifting the real incomes of low-wage workers in Singapore, with real income growth for the group outpacing that of median earners between 2016 and 2021, said the Ministry of Finance (MOF) in its latest Singapore Public Sector Outcomes Review.
The biennial report takes stock of Singapore’s performance in key areas such as the economy, liveability, environment sustainability and governance, said Prime Minister (PM) Lee Hsien Loong in a Facebook post.
In particular, the seventh edition showcases “the collective efforts of our nation and people in overcoming the challenges of the pandemic”, while also highlighting the progress made in key national priorities, said head of civil service Leo Yip.
The report, released on Tuesday morning (Dec 6), found that real income growth of 20th-percentile earners was at 2.7 per cent per annum between 2016 and 2021. This was faster than the real income growth for median earners, at 2.1 per cent per annum.
Income inequality has also fallen over the last decade due to enhanced social policies and measures that have helped more individuals to gain employment, said MOF.
In 2020, after accounting for taxes and transfers, the Gini coefficient – which measures income inequality – fell to a historic low of 0.375 due to extensive Covid-19 relief measures. It nudged up to 0.386 after some of the one-off pandemic support measures ended, but was still lower than the 0.398 recorded in 2019 before the pandemic.
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On the economy front, Singapore recovered from its worst full-year recession in 2020 to expand by 7.6 per cent in 2021. Growth was mainly driven by the manufacturing, finance and insurance and wholesale trade sectors.
Productivity is also up: Labour productivity, measured by real value-added per actual hours worked, rose by 5.2 per cent in 2021.
Employment rebounded in 2021 from the pandemic-induced contraction in 2020. Unemployment rates have improved but remain elevated, especially for older workers aged 40 and above. Retrenchments among residents fell to 6,430 in 2021, after reaching an 11-year high of 14,380 in 2020.
Among employed residents, the share of professionals, managers, executives and technicians (PMETs) rose at a faster pace compared to previous years. More were hired into PMET roles, reflecting demand from sectors such as healthcare, financial and insurance services, and professional services.
Throughout the pandemic, Singapore remained an attractive location for new investments and business activities. Between 2020 and 2021, the Economic Development Board attracted investment commitments amounting to S$11.8 billion in fixed asset investments, and S$5.2 billion in total business expenditure per annum in 2021.
Investments from semiconductor and biotech companies accounted for more than half the commitments secured, even as new investments were coming in from sectors such as agri-food, chemicals and materials and electronics.
Over the course of the pandemic, more than S$28.1 billion in wage support was disbursed to 180,000 employers under the Job Support Scheme over eight tranches between 2020 and 2022 to help businesses and workers.
More businesses have also digitalised over the pandemic. The proportion of firms adopting digital technologies went up to 91 per cent in 2021, from 74 per cent in 2018.
“The past two years have not been easy, but we have emerged strongly from the pandemic through the collective effort of Singaporeans, community, business and the government,” said PM Lee.
He added: “While the world grapples with the impact from the pandemic, global inflation, and geopolitical tensions, the outlook is filled with uncertainties. We must be clear headed about our challenges and opportunities, and united in working for a better future for Singapore.”
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