Singapore in Numbers – The Singapore Household Expenditure Survey 2023
The Department of Statistics of Singapore conducts this survey every 5 years to shed more light on how much and what Resident households in Singapore are spending on. While this information is useful in it of itself, but as part of FYTs series of data driven insights about Singapore, it becomes much more insightful when you consider it against
The backdrop of the current economic conditions, specifically the rising cost of living and the recent return to “normalcy” since the COVID 19 pandemic
The changes from the last survey conducted 5 years ago
The Household income patterns in 2023, to get a sense of the financial wellbeing of resident households in Singapore
Evolving Spending Priorities
Housing & Utilities: Now accounting for 24% of household budgets, up from 17.5% two decades ago, driven by higher costs in rent and utilities.
Transportation: A notable decline to 13%, down from 18%, suggests a shift toward more affordable or private hire transport options.
Insurance & Financial Services: A category that was negligible twenty years ago now makes up 8% of expenditure, showcasing growing awareness of financial planning.
Savings - A Tale of 2 Realities
Across all income quintiles, household incomes outpaced expenditures, leaving room for savings. However, the savings gap is stark:
Top quintile households saved 67% of their income, reflecting robust financial stability.
Lowest quintile households managed just 10%, a figure that has stagnated over time, despite modest growth in absolute terms.
This signals that while many households are thriving, lower-income families remain vulnerable—a call to action for targeted policy interventions.
Income Driven Spending - What matters most
The highest income quintile spends 9 times more than the lowest quintile. Yet the universal love for food shines through:
Higher-income households favour restaurants.
Lower-income households frequent hawker centres.
Spending shifts with income:
Lower 40%: Health and basic household needs dominate.
Top quintile: Prioritizes transportation, reflecting greater disposable incomes and car ownership.
Dwelling Driven Spending - What Matters Most
Spending priorities closely mirror household income levels:
1-2 room flats: Top expenditures include Health, Food, Insurance & Financial Services, Information and Communications (mobile devices), and Land Transportation (bus or MRT).
3-room flats: Similar priorities, except Household Furnishing & Maintenance replaced land transportation.
4-5 room flats: Increased spending on Education over Information and Communications.
Condominiums, private apartments, and landed properties: Transportation spending outpaced food expenditures.
This evolution in priorities underscores how wealth and income influence household spending patterns, reflecting shifting needs and aspirations.
Economies of Scale in Larger Households
As household size increases, expenditure per person decreases:
Single-person households: $2,426/month.
Five-person households: $1,904/month.
Spending priorities evolve with size:
Small households focus on utilities and dining out.
Larger households channel more into education and transportation.
FYT Consulting’s take – From Insight to Impact
Adapting to Rising Costs:
Most households are adjusting well to rising living costs, but the bottom 10% remain financially fragile. Policymakers must enhance support systems to ensure these families are not left behind.
Housing Affordability:
The growing share of expenditure on Housing & Utilities reflects affordability pressures, especially for renters. Addressing this issue is critical to maintaining quality of life for all.
Healthcare and Aging:
Healthcare spending highlights the realities of an aging population. Ensuring affordable and accessible healthcare remains essential for Singapore’s long-term societal well-being.
Financial Planning and Education Inequality:
The rise in Insurance & Financial Services shows households are taking charge of their financial futures. However, disparities in education spending highlight the need to ensure equitable opportunities for lower-income families, preventing the cycle of inequality.
Maximizing Human Potential Through Education:
Higher-income households invest heavily in education, using it as a lever for social mobility. However, bridging the resource gap for lower-income families is crucial to ensuring that every household can access opportunities to grow and succeed.
Empowering Households Through Data Literacy:
Larger households show evidence of economies of scale, and their spending priorities adapt based on their size. Helping families understand these patterns through better financial and data literacy can empower them to optimize their resources and make more informed decisions.
Explore the Data Yourself
Throughout this article, we’ve included a series of charts to illustrate key findings. To delve deeper, check out our interactive dashboards here. These dashboards allow you to explore the data, uncover trends, and draw your own conclusions.
Join the conversation
At FYT Consulting, we believe data inspires discovery. What insights stand out to you from the data? Are there patterns or observations we might have missed? Share your thoughts in the comments or reach out to us directly. Your perspectives help enrich the conversation and uncover new ways to turn data into impactful action.
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