There are 48,500 millionaires in Singapore. The gap between rich and poor continues to increase after the economic crisis. A third of the working population does not earn enough to pay income tax.
THE number of millionaires in Singapore rose at the fastest pace in the world in 2004, according to a report by Cap Gemini & Merrill Lynch & Co.
Singapore millionaires rose 22.4 percent to 48,500, the report said. In the US the number increased 10 percent to 2.5 million and in Hong Kong they rose by 18.8 percent to 67,500. Asia had 2.3 million millionaires last year, up 8.2 percent, the research showed.
Source: Singapore's millionaires increase at fastest pace in world, Bloomberg, 10 June 2005.
http://singabloodypore.blogspot.com/
I REFER to the report, "Poor getting poorer in Hong Kong" (Streats, Nov 4), and former permanent secretary Ngiam Tong Dow's recent remarks in the media about the greatest danger being elitism and complacency.
Lawmakers are said to be urging the Government to do more to close a widening wealth gap.
Meanwhile, the gap between the rich and poor in Singapore seems to be widening.
The number of people in Singapore considered affluent has jumped by a quarter from five years ago, despite recession and job losses, according to a study by London-based business intelligence and consultancy firm Datamonitor.
According to the latest Ministry of Manpower labour market report, the percentage of workers still looking for a job six months after being laid off was 66.7 per cent for those with secondary education and below, and only 10 per cent for those with post-secondary education.
According to a study by Mr Mukhopadhaya Pundarik at the National University of Singapore, income inequality increased in Singapore during the Asian economic crisis.
The average household income of the bottom decile decreased by 48.4 per cent, while the overall decrease was only 2.7 per cent.
The unemployment rate for this bottom 10 per cent increased from 28.2 per cent in 1998 to 44 per cent in 1999 - an increase of about 56 per cent compared to 42 per cent for the total labour force.
The latest inflation data for Singapore shows that the rise in consumer prices for the lowest 20 per cent income group was more than seven times that of the top 20 per cent income group.
Regarding tax incentives, I understand that more than a third of the working population does not earn enough to pay income tax. A tax policy that progressively gives more rewards to the richest and hits the poorest may lead to even greater income inequality.
Eighty-three countries are ranked above Singapore in the United Nations Human Development Index Report's Income Inequality measure.
According to the Singapore Census of Population 2000, the ratio of average income for the top 20 per cent to the lowest 20 per cent increased from 11.4 in 1990 to 20.9 in 2000.
Perhaps we need to give more emphasis to reducing the gap between the rich and the poor.
Source: Rich-poor divide is widening,
Leong Sze Hian, 10 Nov 2004, sg-review.
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Sources and Relevant Links:
Sg_Review Singapore's Millionaires Increase? Legitimised Corruption
Moneyweb Making out like thievesFelicity Duncan
Streats Rich-poor divide is widening 4 Nov 2004
Sg_Review Rich-poor divide is widening 10 November 2004
