Singapore’s median income growth outpaced the increase in the cost of living within the five years to 2014 — an unusual feat that can be sustained if the city-state continues its restructuring efforts, said Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam.
In campaigning for the upcoming general election, opposition candidates have, in the past week, taken issue with the influx of foreign workers, whom they claim have “stolen” jobs from Singaporeans, leaving them unable to cope with the increasing cost of living, reported Today Online.
He explained that real median growth increased 18 percent from 2010 to 2014, surpassing that of “countries in the same league” as Singapore, such as Taiwan and Hong Kong, whose respective real median income fell and remained flat. He noted that Singapore achieved this “unusual performance” as the economy had generated more jobs after the global financial crisis.
However, he also cautioned that sustaining this achievement will be challenging, considering the volatile external environment in which China’s slowdown has been faster than expected, and Singapore’s neighbours Indonesia and Malaysia face political uncertainties.
Investments in developed countries like the United States have also been weak, and this is expected to have a spillover effect on Singapore.
“When you add it all up, it’s a sluggish international environment. I say this not to spread fear, but to underline the practical challenges that we have to recognise, (and) to underline the confidence investors and businesses still have in Singapore because they know we’ve got policies that are working, and they know that from our track record, we can deal with crises when they occur,” he said.
Cheryl Marie Tay, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email cheryl@propertyguru.com.sg