Will economic changes leave the middle class ‘displaced’?

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SINGAPORE: A Reddit post questioning the future of Singapore’s middle class has sparked discussion online, after one user shared how Singaporeans now have to be extremely intentional just to survive the city-state’s rising prices, as well as job threats caused by automation and outsourcing—leaving many to wonder if these economic changes could eventually lead to the “death” or “displacement” of the middle class.

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One commenter online wrote, “I pity the future generations. Going forward in order to survive in Singapore, it seems that you have to be very, very intentional in your life goals from a very young age. This means that there is no wiggle room for failures, detours, and even exploration.”

He noted that students aiming for white-collar jobs now have “no room for exploration”, as they must get into one of the top three local universities and take on only relevant internships, but even then, a stable, decent-paying job is still not guaranteed.

Meanwhile, for those outside the white-collar path, success is only guaranteed when one finds their niche or works aggressively hard to create their own. “Basically, there is no room for being average anymore,” he said.

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He also noted that while some who succeeded are doing well, many others are struggling as mid-paying jobs are getting automated or outsourced, and what’s left are high-paying roles that most are not qualified for.

“Even choosing your future spouse has to be optimised in a way that he/she has a high earning power and must win the BTO lottery,” he added.

According to Singapore’s Department of Statistics, median household employment income among resident employed households grew 3.9% in 2024, from S$10,869 in 2023 to S$11,297 in 2024. After adjusting for consumer price inflation, which averaged 2.4% last year, real income growth stood at 1.4%.

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The government is also reviewing the current income ceiling for Build-To-Order (BTO) flats, which has remained at S$14,000 for couples and families since 2019.

Senior Minister of State for National Development Sun Xueling said the review aims to ensure the ceiling keeps pace with economic trends, allowing more Singaporeans, including young couples that are doing well and earning more, to remain eligible for public housing.

Although data from the Department of Statistics also showed that each household member of resident households, including those with no employed person, received an average S$7,825 last year, higher than S$6,418 received in 2023 amid measures rolled out to support Singaporeans’ cost-of-living, retirement, and healthcare needs, and household income inequality falling to its lowest since year 2000 after accounting government transfers and taxes, many are still feeling the pinch.

Other Redditors also commented that the issue goes beyond Singapore, with one saying that “the entire capitalist class-system world is cooked.” 

We are literally witnessing the death of the class system as we’ve known it for our entire lives, and the lives of our parents and grandparents,” he said as he argued that countries without natural resources, like Singapore, will ultimately be subservient if not subsumed by those who have the natural resources to support societal survival.

He added that society may be heading toward a “feudal divide,” where people are split not by class, but split into those who own and those who rent.

Still, one commenter pointed out that such struggles have always existed. “It’s a free world,” he wrote. “Everyone has their own struggles. Those who don’t adapt just get left behind. That has been the case for as long as civilisation has existed./TISG

Read also: Singapore home buyers face losses and bank interest payments as Johor projects are abandoned

Featured image by Depositphotos (for illustration purposes only)





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