Top 1% of households hold 14% of nation’s wealth, Minister Siow says

The level is comparable to advanced economies with similar wealth Gini coefficients.

The top 1% of households in Singapore hold about 14% of total household wealth, whilst the top 5% hold about 33%, according to Senior Minister of State for Finance Jeffrey Siow.

“These levels are broadly comparable to advanced economies with similar wealth Gini coefficients,” Siow said in a written parliamentary reply to questions on wealth concentration and the measurement of inequality.

However, he cautioned that the estimates should be interpreted carefully due to sample size limitations and potential under-reporting in survey responses at both ends of the distribution.

Siow said wealth inequality is generally higher than income inequality in advanced economies, as wealth accumulates over the life cycle.

In Singapore, a significant portion of household wealth — particularly amongst lower- and middle-income households — is held in owner-occupied housing and CPF savings.

Wealth inequality is measured at the household level using a combination of survey data and administrative records.

Meanwhile, Siow noted that the government does not differentiate between public and private housing, or between owner-occupied and non-owner-occupied housing, in computing the wealth Gini coefficient.

“It is a stock measure of net worth rather than a measure of liquidity,” he added.

The government intends to track the measure over time, with the next Household Expenditure Survey cycle scheduled for 2028.

In response to questions on wealth taxation, Siow said the government focuses on taxing less mobile assets such as property and motor vehicles, with progressive rates applied to higher-value assets.

“For asset-rich but income-poor seniors, we provide deferral mechanisms for property tax payments to ease cash-flow pressures,” he added.