By Rachel Chan

SINGAPOREAN families, especially those living in one- or two-room flats, got richer last year, and have a higher household income than before.

Thanks to the $1.8-billion surplus-sharing package - which was given out by the Government last year to share Budget surpluses with Singaporeans - the rich-poor divide was narrowed.

Income growth for the poorest families was higher (1.8 per cent) than that of the richest (0.9 per cent).

In particular, the average household income of families in Housing Board three-room or smaller flats saw the highest jump.

Between 2007 and last year, the household income for this group grew by between 13 and 15 per cent.

This compares to the 9 to 12 per cent growth in income for those living in five-room flats and condominiums.

The details came from figures on average household income released by the Department of Statistics yesterday.

The study also found that median household income here has gone up to $4,950 from $4,380, a rise of 13 per cent. However, after accounting for inflation, average household income saw slower growth - 6.2 per cent compared to 7.2 per cent in 2007.

More households are now earning more.

Nearly two in five families, which have at least one working family member, had a monthly income of $7,000 last year. In 2007, there was only one in three families with that level of income.

Those who spoke to my paper yesterday said they did not feel richer, although most were earning more.

Tuition teacher Chua L.C., 31, who lives in a one-room flat, said the Government's surplus- sharing package has helped her save more, which gives her peace of mind. 'The handout helps me in dry months when I don't have enough tuition assignments,' she said.

Ms Chua, who shares the Jalan Bukit Merah flat with her aged parents and a younger brother, added: 'Normally, I save very little of what I take home. But during months when funds from the package are credited to my account, I can save some of what I earn.'

Project executive Suharti Sulaimi, 31, who lives in a four-room flat in Ang Mo Kio with her husband and two young daughters, said she saved what she got from the package.

She said: 'My husband and I got pay rises last year. But taking the big picture into account, we are not richer as things have become more expensive.

'The price of daily necessities such as milk powder have gone up by a few dollars.'

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