Singapore:
Income-based Gross Domestic Product
International Workshop on Household Income, Consumption and Full Accounting of the
Households Sector
Beijing, China
26-28 March 2012
Agenda

Overview

Conceptual Framework

GDI Compilation Methodology
-Data Collection & Compilation Strategy
-Sources & Methods

Reconciliation Processes

GDI Revision Policy
Overview

Three Approaches to GDP
o The Singapore Department of Statistics (DOS) compiles and
disseminates GDP estimates using all three approaches to GDP

Income-based GDP
o Since 1998, DOS has compiled and published the income-based
GDP, GDP(I) on an annual basis, from reference year 1980
onwards
o
GDP(P) as headline GDP - statistical discrepancy recorded on
GDP(I)
Overview
Approach
GDP
Frequency
Quarterly
Start Period
Quarterly - Q1 1975
Annual - 1960
Timeliness
(Advance)-Not later than 2
weeks after end of reference
quarter
Availability of
Constant-price
series
Yes
(Preliminary)-Not later than 8
weeks after end of reference
quarter
GDE
Quarterly
Quarterly - Q1 1975
Annual - 1960
Not later than 8 weeks after
end of reference quarter
Yes
GDI
Annual
Annual - 1980
Not later than 8 weeks after
end of reference year
No
Conceptual Framework

System of National Accounts (SNA), 1993/2008
o Consistent with SNA

Recent Conceptual Change/Methodological Improvements
o Capitalisation of software expenditure
o
Treatment of employee stock options as compensation of
employees
o
Allocation and estimation of financial intermediation services
indirectly measured (FISIM)
GDI Compilation Framework
Data Collection & Compilation Strategy
Business
Register
Administrative
Records
Up-to-date
survey frame
Data Management
Policy
Statistical Surveys
Administrative Data
-Comprehensive data
-Consistent with national accounts concepts
-Less timely
-Respondent burden
-Detailed analysis constrained by sample size
-Comprehensive & detailed data
-Less consistent with national accounts concepts
-Generally more timely than surveys
-Reduced cost to business
-Good source of detailed analysis
Adjustments
&
Reconciliation
GDP(I)
GDI Compilation Framework
Sources & Methods: Compensation of Employees (CoE)

Business survey questionnaires consistent with national
accounts concepts

Survey items on CoE include:
(1) Wages & salaries (including bonus & allowances)
(2) Employer's social contributions (i.e. Central Provident Fund)
(3) Staff benefits (e.g. welfare, medical & housing benefits)
(4) Expenses on share-based payment to employees (e.g. stock options)

CoE is largely compiled on the basis of annual business
survey results, and cross-validated against administrative
data for consistency & reliability

In the absence of benchmarked annual survey data, latest
year’s estimates are extrapolated on the basis of
quarterly/monthly administrative & survey data
GDI Compilation Framework
Sources & Methods: Compensation of Employees (CoE)
Type of Data
Survey Data
Timeliness
Quarterly Data:
About 2 months
after end of
reference quarter
Source
Business surveys
(e.g. Census of
Manufacturing
Activities, surveys of
services)
Coverage
Major industries
(e.g. manufacturing,
financial & insurance)
Annual Data:
About 1-1.5 years
after end of
reference
year
Administrative
Data
Quarterly Data:
About 1 month
after end of
reference quarter
Annual Data:
About 1 year
after end of
reference
year
Frequency
Quarterly
Annual
E.g. Government
finance statistics
Government ministries &
departments
Monthly
E.g. Central Provident
Fund (CPF) & work
passes records
All industries
Quarterly
E.g. Inland Revenue
Authority
All industries
Annual
GDI Compilation Framework
Sources & Methods: Gross Operating Surplus (GOS)

Similar to CoE, GOS is compiled largely on the basis of
business survey results, and cross-validated against
administrative data

GOS is derived as a residual item:
GOS = Value added (basic price)
- Compensation of employees
- Other taxes less subsidies on production

In the absence of benchmarked annual survey data, latest
year’s estimates are extrapolated on the basis of quarterly
survey data.
GDI Compilation Framework
Sources & Methods: Gross Operating Surplus (GOS)
Type of Data
Survey Data
Timeliness
Source
Quarterly Data:
About 2 months
after end of
reference quarter
Business surveys
(e.g. Census of
Manufacturing Activities,
surveys of services)
Coverage
Major industries
(e.g. manufacturing,
financial & insurance)
Annual Data:
About 1-1.5 years
after end of
reference
year
Administrative
Data
Annual Data:
About 1 year
after end of
reference
year
Frequency
Annual
Quarterly
E.g. Inland Revenue
Authority
All industries
Annual
GDI Compilation Framework
Sources & Methods: Taxes less Subsidies on
Production and on Imports

Taxes less subsidies on production and on imports are
compiled largely on the basis of monthly/quarterly
administrative data, e.g. government finance statistics (GFS).
Reconciliation Processes
Non-Benchmarked years
Benchmarked year
GDP(P)
GDP(P)
Statistical Discrepancy = 0
Statistical Discrepancy ≠ 0
Statistical Discrepancy ≠ 0
Data
Reconciliation
(IO tables)
Data
Confrontation
GDP(E)
Statistical Discrepancy = 0
Statistical Discrepancy ≠ 0
GDP(I)
GDP(E)
Statistical Discrepancy = 0

Data confrontation among three approaches to GDP to narrow
statistical discrepancy on an annual basis

Data reconciliation among three approaches to GDP (i.e. no
statistical discrepancy is recorded) on the basis of updated inputoutput tables once every 5 years
GDP(I)
GDI Revision Policy
Routine Revision
Benchmarked Revision
Frequency of Release
Every year
Every 5 years
Purpose of Data Revision
-Incorporate latest business survey
results
-Incorporate benchmark data from
updated IO tables
-Incorporate updated business
survey results for earlier years
-Incorporate major methodological,
conceptual, classification and data
source improvements
Extent of Data Revisions
Mainly for the most recent years
Entire time series
Update of Reference Year
No
Yes
Thank You
Our Vision
A National Statistical System of Quality,
Integrity and Expertise
Our Mission
We provide Reliable, Relevant and
Timely Statistics to support Singapore's
Social and Economic Development