SINGAPORE – Singaporeans now have a fuller picture of incomes and social mobility in the city-state, which observers said is a good first step for a national conversation on how much inequality the country is prepared to accept.

With more data, Singaporeans could better agree on the amount of redistribution and assistance that society should have, and accompanying trade-offs which could include changes to taxes, education and housing policy, the experts added.

Two reports that the Government released on Feb 9 had, for the first time, included non-wage income into the tabulation of annual household income trends, as well as an estimate of Singapore’s wealth Gini coefficient.

Income inequality here fell over the past decade and was at a record low, even after factoring for additional income streams such as investments and rental properties.

However, the Republic’s wealth inequality was higher than its income inequality, and was comparable to other advanced economies such as the United Kingdom, Japan and Germany.

Jalan Besar GRC MP Shawn Loh said the data showed that Singapore could be close to the ideal range for income inequality, but that policy moves are needed that target extreme wealth and the passing of wealth to the next generation.

With the global trend being towards greater wealth inequality, driven by the “winner-takes-all” effect of tech-driven economic systems, Singapore would need stronger redistribution tools over time, added Mr Loh, a former Budget director.

“As a society, we need to have some national consensus over what the appropriate levels of inequality should be…overall, the paper is a good first step in sparking a national conversation on what this consensus could look like.”

Institute of Policy Studies deputy director Christopher Gee agreed that the additional data should prompt a discussion on what it means for Singapore to become a more just and equitable society, while providing a basis for comparison with other countries.