The top 1 percent of households in Singapore hold about 14 percent of total household wealth, while the top 5 percent account for roughly 33 percent, Acting Transport Minister Jeffrey Siow told Parliament on Tuesday(February 24).
Mr Siow, who also serves as Senior Minister of State for Finance, was responding to questions from Members of Parliament following the Finance Ministry’s release of new data on wealth distribution ahead of the Budget 2026 statement.
The Ministry of Finance’s occasional paper, published on Feb 9, estimated Singapore’s wealth Gini coefficient at 0.55, higher than its income Gini coefficient of 0.38 after taxes and government transfers. The Gini coefficient measures inequality on a scale from 0 to 1, with higher values indicating greater disparity.
Cautioning against over-interpretation, Mr Siow said wealth concentration figures should be treated carefully due to sample size limitations and the possibility of under-reporting at both ends of the wealth spectrum. Measuring wealth is “notoriously hard”, he noted, particularly because of overseas assets and unlisted holdings.
According to The Straits Times, this is the first time the government has published an official estimate of Singapore’s wealth Gini coefficient, marking a significant step in broadening inequality metrics beyond income data traditionally tracked in national statistics.
The minister said Singapore’s wealth concentration levels are broadly comparable to those of other advanced economies with similar wealth Gini figures. Wealth inequality tends to exceed income inequality in developed countries because assets accumulate over a person’s life cycle, he added.
The data was compiled by combining findings from the five-yearly Household Expenditure Survey with administrative records, including information on properties, Central Provident Fund (CPF) accounts, Singapore Savings Bonds and securities held in Central Depository accounts. Mr Siow stressed that the Government has no plans to seek additional legislative or administrative powers to mandate more granular asset disclosure solely for inequality measurement.
As this is the Republic’s first wealth Gini estimate, there is no historical series for comparison. However, the Government intends to monitor the measure over time and may incorporate additional indicators in the next Household Expenditure Survey scheduled for 2028.
Nominated MP Kenneth Goh asked how the Government plans to use the wealth inequality statistic and whether there is a threshold that would trigger policy action. In response, Mr Siow said the absolute Gini figure provides a benchmark against other countries, but the more important factor is the trend over time.
“The enhanced data and methodology that we have used for both income inequality as well as wealth inequality will improve our understanding of the states of inequality in Singapore, which will better help us develop more evidence-based and targeted policies to improve Singaporeans’ lives,” he said.
Concerns were also raised about the potential impact of wealth-targeted policies on retirees who may be asset-rich but income-poor. Mr Siow said Singapore’s property tax system is already progressive, with higher taxes imposed on investment and higher-value properties, while owner-occupiers with a single property pay less and benefit from rebates.
For seniors facing cash flow constraints, deferral mechanisms and interest-free instalment plans are available to ease property tax payments, he added.
Mr Gerald Giam (Aljunied GRC) asked whether the Government would consider shifting the tax burden away from income and work toward wealth, given the disparity between wealth and income inequality levels. Mr Siow said the Government remains open to a broad-based approach to taxation.
“As our society ages and we move towards an older society where there’s more asset owning, (further wealth taxation) is something we can consider,” he said, while cautioning that any such move must be carefully calibrated to avoid social disruption.
The publication of Singapore’s first official wealth inequality measure comes amid broader discussions during the Budget 2026 debate on ensuring sustainable growth and social equity in an ageing society.
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