PRESS RELEASE
Report on the Household Expenditure Survey 2012/13
Average Monthly Household Expenditure and Income Increased,
With Income Growth Outpacing Expenditure Growth
1
In 2012/13, Singapore resident households spent an average of
$4,720 a month on goods and services, higher than the $3,810 in
2007/08. Average monthly household income from all sources also rose,
from $8,110 in 2007/08 to $10,500 in 2012/13. On both an overall and
per household member basis, household income rose faster than
household expenditure over this period.
2
These are the key findings from the Singapore Department of
Statistics’ Household Expenditure Survey (HES) which was conducted
from October 2012 to September 2013. The report on “Report on the
Household Expenditure Survey 2012/13” is available online on the
Department’s website at http://www.singstat.gov.sg.
Household Income from All Sources Rose for All Income Groups,
with the Lowest Quintile Experiencing the Fastest Growth
3
Average monthly household income from all sources rose by 5.3
per cent per annum in nominal terms between 2007/08 and 2012/13.
4
Households across all income groups experienced income growth
over this period. Those in the lowest to middle income quintiles saw
their income increase by 6.1 to 6.6 per cent per annum, faster than the
income growth of households in the top two quintiles. Notably,
households in the lowest 20% also experienced significantly faster
income growth between 2007/08 and 2012/13 than in the earlier 5-year
period from 2002/03 to 2007/08.
5
Across house types, households living in HDB flats experienced
higher annual income growth (5.2 per cent) between 2007/08 and
2012/13, compared to those in condominiums and other apartments
(3.6 per cent) and landed properties (4.2 per cent).
6
Employment income accounted for 79 per cent of total household
income from all sources in 2012/13, with business income and income
from non-work sources 1 contributing 11 per cent and 10 per cent
respectively.
Household Expenditure Increased More Slowly than Income
7
Compared to the increase in average household income between
2007/08 and 2012/13, average household expenditure rose by a lower
4.4 per cent per annum. Similarly, on a per household member basis,
average household expenditure increased more slowly than income, by
4.6 per cent and 6.2 per cent respectively.
8
Between 2007/08 and 2012/13, households across all income
groups experienced increases in their average monthly household
expenditure. Households in the middle income quintile (i.e., 41st – 60th
percentile) experienced the fastest increase in average expenditure
compared to other income groups, at 5.5 per cent per annum. In
comparison, average monthly expenditure of households in the lowest
20% and 21st - 40th percentile income groups grew more slowly, at 4.5
per cent per annum and 3.7 per cent per annum respectively. For all
income groups, growth in average household income outpaced growth
in average household expenditure from 2007/08 to 2012/13, as well as
in the earlier 5-year period from 2002/03 to 2007/08.
9
While households spent more in 2012/13, the increase in monthly
household expenditure2 was partly due to households consuming better
quality and higher-end products and services.
1
Non-work sources of income include rental, investment, contributions from relatives and
friends, social welfare assistance and government transfers etc.
2
Expenditure excludes imputed rental of owner-occupied accommodation. In the HES,
consumption expenditure on owner-occupied accommodation is estimated using the rental
equivalence method, which measures shelter cost in terms of the expected rental an owner
would have to pay if he were a tenant of the premises. As it is neither a cash outlay nor
income, imputed rental is included only when analyzing the detailed share of household
expenditure by goods and services.
Increases in Household Expenditure Partly Reflect Lifestyle
Changes and Spending on Better Quality Products and Services
10
In 2012/13, housing3, food and transport accounted for the largest
shares of household expenditure for all income groups. Collectively,
they contributed to 65 per cent of monthly household expenditure on
average, up from 64 per cent in 2007/08 and 61 per cent in 2002/03.
11
While expenditure in all three categories increased between
2007/08 and 2012/13 and over the longer 10-year period, the increase
in spending partially reflects lifestyle changes and consumption of
higher quality products and services. For instance, with the increasing
tendency for households to dine out, food serving services accounted
for 64 per cent of the expenditure on food, up from 62 per cent in
2007/08 and 58 per cent in 2002/03. While meals at hawker centres,
and food courts continued to constitute the bulk of the expenditure
within food serving services, the share of spending in restaurants, cafes
and pubs increased from 22 per cent in 2002/03 to 27 per cent in
2007/08 and further to 35 per cent in 2012/13.
12
Similarly, average expenditure on transport increased from $700
to $810 monthly between 2007/08 and 2012/13, due mainly to higher
spending on passenger air travel and private transport. Expenditure on
public transport rose marginally from $160 to $170 over this period.
Over a 10-year horizon, while expenditure on transport increased by
around $200, public transport expenditure rose by less than $20.
Passenger air travel and private transport contributed to the bulk of the
increase.
Ownership of Consumer Durables Rose
13
Home ownership rate among resident households remained high
at 89 per cent in 2012/13. Even among the lowest 20% households, 82
per cent were home owners.
3
For estimation of expenditure shares, imputed rental is included. Excluding imputed rental,
other housing expenses (e.g. utilities, actual rents paid by tenants, furnishings and household
maintenance) represented a 12 per cent share of households’ expenditure in 2012/13, much
lower than the 30 per cent share when imputed rental was added. It was the third highest
share after the specific categories of food and transport.
14
Reflecting improvements in standards of living, the ownership of
consumer durables among households of different income groups and
house types increased in 2012/13, compared to 2007/08 and 2002/03.
15
In 2012/13, ownership of television sets and washing machines
was near universal at 98 per cent and 96 per cent respectively. More
households also opted for better quality items such as Liquid Crystal
Display (LCD)/Plasma/Light Emitting Diode (LED) television (TV) sets
over Cathode Ray Tube (CRT)/projection TV.
16
Furthermore, ownership of mobile phones, personal computers
and air-conditioners became more common, not only among the higher
income groups but also the lower income groups. Some 86 per cent of
households living in HDB 1- and 2-room flats owned a mobile line in
2012/13, up from 65 per cent in 2007/08 and 56 per cent in 2002/03.
Across all households, personal computer ownership increased from 70
per cent in 2002/03 to 77 per cent in 2007/08, and further to 83 per cent
in 2012/13. The rise in ownership of personal computers over the last 5
years was more significant for households in the lower and middle
income quintiles, as well as households living in HDB 1- to 4-room flats.
Singapore Department of Statistics
18 September 2014
_____________________
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