By Chuin Ting Weber, CFP, CFA, CAIA 
CEO & Chief Investment Officer, MoneyOwl 

I discussed the 2024 Labour Force Advance Release with Andrea Heng and Hairianto Diman on CNA 938 on 2 December 2024. You can tune in to the full conversation here: https://www.channelnewsasia.com/listen/daily-cuts/understanding-singapores-income-report-4783251. 

Encouraging News for Workers 

The report showed that our labour market was improving for Singaporean workers:  

1. Median income wages went up in real terms 

Median income increased by 5.8% year-on-year in nominal terms and 3.4% in real terms (after accounting for inflation), reversing last year’s real income decline. 

This also signals an increase in purchasing power for Singaporean workers.  

Longer-term growth for the median group’s wages grew at 0.7% p.a.  

2. Wages were bolstered for lower-wage workers, backed through macroeconomic and policy support  

For lower-income workers (bottom 20^th percentile of income earners, or P20), they saw an even higher increase of wages at 7.1% year-on-year in nominal terms and 4.6% in real terms (after accounting for inflation).  

This could be attributed to:  

1. Growing economy: Singapore’s economy grew 5.4% in Q3 2024, thanks to growth in the Manufacturing, Wholesale Trade & Finance, and Insurance sector.  

2. Strong tripartite structural support (Government, NTUC, Employers): policies such as the Progressive Wage Model (PWM), National Wage Council recommendations, and Workfare schemes have provided targeted support for the lower-income. 

PWM is driving wage growth across eight industries, with nominal increases of up to 10.8% p.a. in wages from 2022 to 2028.  

This includes recently added sectors such as Retail, Food Services and Waste Management.  

Longer-term growth for the P20 group’s wages grew at 1.2% p.a.  

3. On a broader level – household incomes have also risen faster than expenditures  

The recently released Household Expenditure Survey confirmed that household incomes have risen faster than expenditures across all income levels over the past five years (2017/18–2022/23), showing improving financial resilience amongst Singaporeans.  

Our income and financial health aren’t just shaped by the wider economy and policies  

While these statistics do tell a story, personal action also matters in improving our financial situation.  

Here are some ways you can take charge of your financial wellbeing 

1. Work on improving your earning power  

The most important financial asset you have is your ability to earn an income. To improve it, look at:  

• Working well: Do your best to excel in your job, and to solve problems for the organisation/your own business    

• Skilling well: Constantly invest in upgrading your skills, and keeping up with industry changes  

• Planning well: Don’t just focus on your next job, but map out your career for the next decade  

Some useful resources:  

• Workforce Singapore’s Polaris: a suite of personalised career guidance programmes designed for employed individuals who are looking to elevate their career through career planning  

• NTUC U PME’s career mentoring programme: a mentoring programme where you can connect with industry experts to get career guidance  

2. Manage your expenses and your ‘own inflation’ levels 

It’s not only about how much you earn, but also how much you spend.  

Being mindful of your spending ensures that your income works harder for your long-term goals.  

3. Build your personal financial planning systems and habits  

In James Clear’s book, Atomic Habits, he talks about how goals are good for setting a direction, but systems are best for making progress.  

Consider adopting financial planning habits such as Paying Yourself First, and More Each Year, and Saving or Investing 15% of Your Income.  

To explore further, check out MoneyOwl’s rubrics that you can easily implement into your daily life: https://www.moneyowl.com.sg/owlrubrics/.  

Building our best possible life requires personal commitment coupled with a collective effort  

Many things affect our financial situation – both external and internal.  

But with a combination of personal action, government and collective help, coupled with a mindset to always do better, we can create better outcomes for ourselves and our families.  

Subscribe here for our soon-to-come and free OwlHoots on financial planning insights and analysis.

Disclaimer:
While every reasonable care is taken to ensure the accuracy of information provided, no responsibility can be accepted for any loss or inconvenience caused by any error or omission. The information and opinions expressed herein are made in good faith and are based on sources believed to be reliable but no representation or warranty, express or implied, is made as to their accuracy, completeness or correctness. The author and publisher shall have no liability for any loss or expense whatsoever relating to investment decisions made by the reader.