Impact of Sustained Increases in Essential Household Expenses on Consumption Patterns among Lower- and Middle-income Households

Mr Gabriel Lam asked the Minister for Energy, Trade and Industry (Energy and Industry) whether the Government tracks how sustained increases in essential household expenses affect consumption patterns among lower- and middle-income households, including whether households reduce expenditure on healthcare, insurance, enrichment or other longer-term needs to meet immediate living expenses.

Dr Tan See Leng: What constitutes essential household expenses would differ across households in Singapore. For food, utilities and public transport, the Household Expenditure Survey showed that between 2017/2018 and 2023, the proportion of total household expenditure spent on these items remained broadly unchanged for lower-income households in the first to 20th income percentiles, as well as middle-income households in the 21st to 80th income percentiles [see Table 1].

Over the same period, the share of total household expenditure spent on healthcare and insurance increased for both lower- and middle-income households. As for private tuition and other educational courses, their share of total household expenditure fell slightly for lower-income households, while remaining stable for middle-income households [see Table 2].