Written reply to PQ on reason for change in government's definition of household income in Key Household Income Trends report

Question:

Assoc Prof Jamus Jerome Lim: To ask the Deputy Prime Minister and Minister for Trade and Industry with regard to the redefinition of household income in the recently published Key Household Income Trends report (a) what motivated the change; (b) how this definition compares with practices of major national statistical agencies internationally; and (c) whether the revised methodology was applied retrospectively to ensure time-series comparability.

Written Answer by Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong

1.           The changes to the KHIT report were made partly in response to Singapore’s changing demographics. With our ageing population, there is a growing proportion of retiree households who do not have employment income, but may have income from non-employment sources such as annuities (including from CPF), rental, investments and regular allowances from their children. Expanding the household income definition and household coverage ensures a more complete representation of resident households and their income trends.

2.           The changes made to the household income definition and coverage in the KHIT report are now aligned with international practices and follow longstanding efforts to improve data on non-employment income, which can be challenging to measure. In particular, DOS took reference from the Canberra Group Handbook on Household Income Statistics, an international guidance manual for the compilation of household income statistics that is widely used by other major national statistical agencies.

3.           For better comparability in the KHIT 2025 report, the revised household income definition and coverage have been applied retrospectively to annual household income statistics from 2015 onwards.