Minister Lim Hng Kiang's Written Reply to Parliament Question on Gini Coefficient Trend Line on Income Distribution that includes foreigners

Question

Mr Gerald Giam Yean Song: To ask the Minister for Trade and Industry (a) whether the Government can provide a Gini coefficient trend line on income distribution for the past five years that includes the foreign population living and working in Singapore; and (b) how this Gini coefficient compares with other major cities like New York, London and Hong Kong which incorporate these segments of their populations in their Gini calculations.

Written Answer (attributed to Mr Lim Hng Kiang, Minister for Trade and Industry)

The Gini coefficient compiled annually by the Department of Statistics (DOS) covers the income from work of resident households with at least one working person. A resident household refers to a household headed by a Singapore citizen or permanent resident. The income from work of foreigners in Singapore, excluding domestic helpers, would be included in the compilation of household income for the computation of the Gini coefficient if they are members of a resident household.

DOS is unable to provide a Gini coefficient that incorporates the income from work of the entire foreign population in Singapore as data on foreigners who are not members of resident households are not available.   

Due to different household and income coverage, Gini coefficients are not strictly comparable across cities. Singapore’s Gini coefficient is based on income from work of resident households with at least one working person. On the other hand, the Gini coefficients for New York City and Hong Kong cover all households, and include income from both work and non-work sources. The UK Office for National Statistics does not publish the Gini coefficient for London.