The Straits Times·Singapore·Wednesday, October 14, 2026 at 10:00 AM UTC

Is Singapore’s wealth gap the new social divide?

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Lynda Hong

Synopsis: Conversations and interviews that give you something to think about. Each Wednesday, In Your Opinion speaks to thinkers, leaders, and the people shaping our lives and the issues of the day.

The average wealth held by the top 20% of households stands at $5.3 million. That is 18 times more than the bottom 20%, whose average wealth sits at $293,000, according to an occasional paper titled Income Growth, Inequality, and Social Mobility Trends in Singapore published by the Ministry of Finance (MOF) in February 2026.

While government policies and wage initiatives have successfully lowered income inequality, MOF’s 2026 occasional paper reveals that Singapore’s wealth Gini coefficient now stands at 0.55.

In this episode of In Your Opinion, host Lynda Hong sits down with Mathew Mathews, principal research fellow at the Institute of Policy Studies, National University of Singapore (NUS), to unpack the critical difference between earning and owning.

They explore why real income growth alone cannot bridge the mobility gap if lower-income families lack the disposable cash needed to invest in property or compounding assets. Mathews explains how accumulated wealth acts as a vital psychological and practical buffer against economic shocks, particularly for lower-income households.

The conversation dives into the future of the Singaporean social fabric, tackling the threat of AI-driven job disruptions, the dangers of retail investing without financial literacy, and the potential for a universal basic capital model. Finally, they discuss whether slowing relative mobility means the traditional status symbols — like car ownership — are irrelevant, or simply being revisioned by a new generation.

Highlights (click/tap above):

00:48 Why did MOF focus on wealth inequality recently

2:16 Income vs wealth: When what you own matters more

3:52 Can two families with the same income but varying wealth withstand economic shocks?

5:05 How wealth protects children’s opportunities for the future

5:35 Impact of AI on widening income inequality

8:49 Why salary growth doesn’t equal social mobility

12:00 How to generate wealth apart from property and CPF

15:12 The hidden risks of retail investing for the lower-income

25:05 Does moving up the economic ladder mean more comforts in life?

29:20 The threat to Singapore’s social cohesion

Read ST’s Opinion section: https://str.sg/w7sH