A research released by the Monetary Authority of Singapore (MAS) states that between 2011 and 2021, middle-income workers in Singapore had greater wage increases than other income categories.
The study showed the nominal income of Singaporean resident employees in the 21st until the 80th income percentiles of their age cohorts are referred to as “broad middle,” which climbed by 42% during the period. It surpassed the 36% increase recorded in the lower and higher income categories. Furthermore, more than half of these middle-class workers increased on the wage scale. Throughout the next ten years, 45% advanced by at least one income decile and 23% advanced by at least two.
MAS clarified that when middle-class individuals are relocated to larger, more productive companies, their salaries increase more than doubled over a ten-year period. However, the income rise for those who stayed in smaller, less productive companies was only approximately 50%.
The survey also found that the average salary of middle-class workers grew higher for those who pursued further education.
The central bank predicts that as demographic limitations such as a low birth rate and an ageing population become “more binding,” Singapore’s economic growth. Therefore, this would continue to decline over the next 10 years. It fell from 5.9% to an annual average of 3.7% in the previous decade.
MAS warned that structural trends may impact jobs and the income of middle-class workers in response to the economic growth. For example, generative AI and technological breakthroughs.
It also stated that employees must update their abilities in preparation for job changes.
In the future, MAS expected that labour demand would continue to decline and that wage growth would moderate by 2024. Hiring is expected to further be supported in the travel and domestic service industries. This is due to the possibility of firming up in the externally facing industries by late 2024.
