SINGAPORE: Local incomes have risen significantly faster than household expenditures between 2017 and 2023, according to new data from the Department of Statistics published in the Singapore Business Review.
The average monthly household income increased by 22.3%, from $12,661 in 2017/18 to $15,473 in 2023. This translates to an annual growth rate of 4.1%, highlighting a steady rise in households’ financial well-being.
Expenditure patterns shift
While household income saw substantial growth, expenditure rose at a slower pace.
Over the same period, the average monthly household expenditure increased from $5,163 to $5,931, reflecting a more modest annual growth rate of 2.8%.
Notably, the top three categories of household spending in 2023 were housing (29.8%), food (20.0%), and transport (13.4%), which together accounted for over 63% of total household expenditure.
Online spending and government transfers surge
Significant changes were also observed in household spending habits.
Online expenditure, for instance, saw a notable increase, rising to 11.9% of total spending in 2023, up from just 4.7% in 2017/18. Meanwhile, government transfers provided a key financial cushion, with households receiving an average of $6,317 per household member in 2023.
The lowest 20% income group saw the highest average transfer, amounting to $10,412, underscoring the government’s targeted assistance to lower-income households.
As for specific spending trends, food and beverage services saw an uptick, driven by higher costs at restaurants, cafés, and pubs. In contrast, spending on transport declined, largely due to reduced expenses on private road transport.