Real median incomes fell by 2.3% in 2023

The Ministry of Manpower (MOM) revealed that real median wages in Singapore fell by 2.3% in 2023. Those earning smaller salaries were more overtly affected; for the bottom 20% of income earners, real income fell by 3%. The culprit? High inflation, which scrubbed away the positive effects of any nominal wage increases that took place this year. According to the Monetary Authority of Singapore (MAS), core inflation for the year is projected to be at 4%, which is well over the target of 2% per annum. However, core inflation is expected to come down to between 2.5% to 3.5% in 2024. Excluding the impact of the 1% GST increase, core inflation is forecast to be between 1.5% to 2.5% next year. On the back of the lower inflation forecast, MOM expects real median wages to turn positive...