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Wealth inequality in Singapore exceeds income inequality, and is broadly in line with other advanced economies, new findings from the Finance Ministry showed earlier this month.<\/p>\n
Singapore’s wealth inequality coefficient stands at 0.55, comparable to estimates for other advanced economies like the United Kingdom, Japan and Germany, which range from 0.6 to 0.7.<\/p>\n
This marked the first time Singapore had published wealth data. Mr Siow acknowledged on Wednesday that wealth is \u201cnotoriously hard to measure\u201d, especially for data on overseas or unlisted assets.<\/p>\n
\u201cTo the extent that wealth at the top of the distribution is underreported, measured wealth inequality would be underestimated,\u201d the ministry said at the time of the announcement.<\/p>\n
Like other advanced economies, Singapore primarily relies on survey-based approaches to collect this data, said Mr Siow. \u201cWe have no plans at this point to seek additional legislative or administrative powers to require more granular asset disclosure solely for inequality measurement,\u201d he said.<\/p>\n
Singapore intends to track wealth inequality over time, and the next cycle of the household expenditure survey is planned for 2028, he added.<\/p>\n
Responding to questions about whether the government has considered other forms of wealth taxes beyond property tax, Mr Siow said Singapore\u2019s approach is to tax wealth in ways that are less susceptible to cross-border movement and tax planning.<\/p>\n
\u201cThis is why we focus on less mobile assets like property and motor vehicles,\u201d he added.<\/p>\n
\u201cWe are mindful of intergenerational balance. Younger households who are accumulating assets should not be unduly burdened. At the same time, higher-value property owners should contribute more.\u201d\u00a0<\/p>\n<\/div>\n