In the four decades since 1980, Singapore has metamorphosed from a growing Asian nation into a bustling global hub, its transformation both impressive and profound.
The social and economic landscapes have witnessed remarkable changes, influenced by an ever-increasing influx of non-residents and changing family dynamics.
In 1980, non-residents comprised a mere 5.4% of Singapore’s population, compared to the current statistic of over 40%.
Similarly, Permanent Residents have seen a spike from around 86,378 (3.6%) in 1980 to approximately 520,000 today.
While this surge of PRs has diversified the city-state’s demographic profile, but at the same time, Singaporeans have faced competition from foreigners in jobs that are traditionally been taken up by locals.
In 1980, 40.8% of households were sustained by a single working person, indicative of a less stressful time when most families could afford this luxury. Today, this figure has declined to about 33%, reflecting the need for double-income families in the face of a rising cost of living.
This evolution of the family unit is also reflected in the shift in household size. While families in the 80s could accommodate an average of 4.71 members per household, this number has shrunk to 3.1 today.
Anecdotal evidence suggests families could afford to be larger in the past, a luxury not as prevalent today.
Amid these challenges, economic growth has been steady, albeit unevenly distributed. The mean income of employees has leapt from S$585 to a median income of S$4,500, and the mean household income has risen from S$1,240 to S$9,000.
However, these figures mask an underlying disparity.
The reality is that the real pay for six out of eight occupational categories has hardly increased over the past two decades.
This a troubling statistic that sheds light on the increasing income inequality that has pervaded the city-state brought about by the fast pace of economic growth and the influx of foreign workers in both blue and white-collar industries.
Through the years from 1975 to 1980, Singapore has maintained a consistent budget surplus of hundreds of millions each year, helping to amass a staggering reserve of about S$1.9 trillion. This fiscal discipline has been the bedrock of Singapore’s economic resilience, enabling it to weather numerous global financial storms.
However, in the face of escalating costs of living and record prices for HDB flats, the strain on the average Singaporean is palpable.
The stark contrast between the price of a bowl of noodles sold at S$1 and an HDB flat at S$27,100 in 1980 at a non-mature estate compared to their present cost is a testament to the formidable financial challenges many citizens face.
Based on the median income of S$900 referenced by Deputy Prime Minister Lawrence Wong, the house-price-to-income (HPI) ratio for a four-room HDB flat in a new town in 1980 was a manageable 2.5.
However, in stark contrast, today’s HPI has escalated to 3.2 for a comparable four-room flat priced at S$350,000 in a non-mature estate like Bukit Batok.
This heightened ratio positions it within the “moderately unaffordable” category according to Demographia International’s guidelines, illustrating a significant shift in housing affordability over the decades.
Furthermore, the shift in job growth towards foreign workers – with 88.5% of record job growth last year going to non-residents – has triggered concerns over the accessibility of opportunities for Singaporeans.
This new reality necessitates a rethinking of Singapore’s approach to housing affordability, employment, skills development, and social security.
