Singapore – A study on household budgets for a family of four (parents, a pre-teen and a teen) in Singapore shows that at least S$6,426 is needed a month to cover basic necessities.
Meanwhile, about S$3,218 a month is enough for a family of two, consisting of a single parent and a toddle or pre-schooler.
The study, conducted by the National University of Singapore Lee Kuan Yew School of Public Policy (LKYSPP) and Nanyang Technological University (NTU), was released in the Minimum Income Standards For Households In Singapore (2021) report.
The amount needed to achieve a basic standard of living in Singapore has exposed some gaps in society, said LKYSPP senior research fellow Ng Kok Hoe and NTU head of sociology Teo You Yenn, as quoted by The Straits Times.
It was reported that about 30 per cent of working households in Singapore do not earn the stated amount.
On Friday (Oct 8), an online panel discussion was held by LKYSPP to present the study’s findings.
“The analysis of household budgets is situated within an extensive field of research on universal human needs and social inclusion,” said LKYSPP.
“This study adopts a consensus-based focus group methodology involving diverse members of the public who deliberate and agree on what constitute basic needs in Singapore today, which are then translated into budgets that households require to meet these needs.”
The results then embody the values and principles that the public identify with and reflect the lived realities of Singapore.
In the study, the standard of living involves Singaporeans being able to afford housing, food, clothing, education, employment, access to healthcare and a work-life balance.
A total of 196 participants of different genders, ethnicity and socio-economic backgrounds were part of the 24 focus group discussions.
On Friday, the Ministry of Finance (MOF) flagged issues on the report, adding that readers should keep in mind the certain limitations on the researchers’ approach.
It noted that the budgets mentioned in the findings were in excess of the basic needs of an average household.
According to MOF, there were discretionary expenditure items such as private enrichment classes, jewellery, perfumes, and overseas holidays included in the estimates.
“The study also did not take into account alternatives, such as MOE student care centres and the various self-help groups, which provide enrichment classes for those who need them at low cost.”
MOF noted that the study considered mortgage payments for flats as an expenditure but “downplayed the fact that the non-interest components of such payments are more akin to savings that help households build up valuable housing equity.”
Based on the Household Expenditure Survey of 2017-2018, S$1,600 per month per capita for both single and partnered households was closer to what an average household spends, said MOH./TISG
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