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Monday, August 15, 2022
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MORE MONEY BEING SPENT BY S’POREANS BUT SALARIES ARE NOT KEEPING UP

People in Singapore are spending more money but their salaries are not keeping up, according to analysts from DBS Bank, who crunched the date from 1.2 million customers.

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The ratio of expenses to income increased to 64% this May from 59% last year.

During the same period, 40% of the sample size saw income growth of less than 5% through May, but consumer prices grew by 5.6%, more than their income growth.

According to the analysts, low-income groups are seeing their expenses grow at a rate of 5.6 times faster than their income, explaining why the government has prioritised providing relief to households that are more vulnerable.

A senior economist at DBS, Irvin Seah, said that “From a policy standpoint, having a strong Sing dollar definitely will help”.

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The monetary policy has also been tightened 4 times by the MAS since last year, with fiscal packages providing relief on the lower end.

However, Seah added that “it is really down to the responsibility of the individual to manage their finances” to offset the impact of global inflation.

All is not doom and gloom though, with DBS analysts seeing signs of upward mobility, with about 23% of those form the lowest income group, moving on to the next highest income bracket os $2500 to $4999.

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