In the fourth quarter of last year, the growth rate of personal disposable income slowed down, and personal savings turned from an increase to a decrease year-on-year | Lianhe Zaobao

In the fourth quarter of last year, the growth rate of personal disposable income in our country slowed down year-on-year, dropping from 4.1% in the third quarter to 1%. Meanwhile, private consumption expenditure accelerated, rising from 3.9% to 4.8%. As a result, personal savings shifted from a year-on-year increase of 4.7% to a decline of 5.1%, marking the first time since the second quarter of 2024 that savings have shrunk. Analysts pointed out that the decline in personal savings in the fourth quarter of last year was likely influenced by increased consumption at the end of the year. Unless this situation persists for several quarters, there is no need for excessive concern over a single quarter's negative shift. Looking ahead, in an unstable economic environment, local households may choose to allocate more income towards savings as a precaution. According to data recently released by the Singapore Department of Statistics, personal disposable income in the fourth quarter of last year grew by 1% year-on-year, reaching SGD 100.6 billion, primarily driven by wage growth. Employee wages in the fourth quarter increased by 4.8% year-on-year, down from 5.1% in the third quarter. At the same time, private consumption rose by 4.8% year-on-year, reaching SGD 64.1 billion. Under the influence of a slowdown in disposable income growth and an acceleration in consumption expenditure growth, the year-on-year change in personal savings shifted from an increase to a decrease in the fourth quarter. However, the personal savings rate (the ratio of savings to disposable income) rose from 34.5% in the previous quarter to 36.4%. Personal disposable income includes wages, self-employment income, net property income received, and net transfer amounts, among others, after deducting personal income tax. Personal savings refer to the balance of personal disposable income after deducting private consumption expenditure. This reflects the funds available for purchasing financial assets, non-financial assets, or repaying debts. In the second quarter of 2024, as well as the third and second quarters of 2022, personal savings also showed negative year-on-year figures, at -1.9%, -1.1%, and -6.9%, respectively. Expert: Decline in Personal Savings May Be Influenced by Seasonal Consumption Habits In an interview, Xie Zhaoquan, the Executive President of financial planning company SingCapital, stated that the decline in personal savings in the fourth quarter of last year was likely influenced by seasonal consumption habits. He said, "During the year-end period, spending on travel, festive shopping, and living expenses typically increases. Additionally, rising housing prices may lead to higher mortgage expenditures for some households. A single quarter of negative savings is not concerning, but it highlights the importance of maintaining a financial buffer." Further Reading [The growth rate of personal disposable income has slowed for three consecutive quarters; analysts expect it to remain moderate next year ![](https://dss0.zbstatic5.com/s3fs-public/styles/article_small_crop/public/articles/2025/12/12/crowd037A5385.jpg? Concerns about rising living expenses have led many citizens to prepare to dine out less and save more. Xie Zhaoquan believes that although the overall savings amount has shrunk year-on-year, the savings rate has increased, reflecting that local households are becoming more cautious and reducing unnecessary expenses. Given the increasingly unstable economic environment, many families may choose to save more of their income. On the other hand, household debt in Singapore continues to rise. In the fourth quarter of 2025, household debt grew by 7.4% year-on-year, the fastest growth rate since the fourth quarter of 2021. This marks the ninth consecutive quarter of growth. Among this, mortgage loans increased by 5.4% year-on-year, reaching SGD 292.3 billion, up from a growth rate of 4.8% in the third quarter. Mortgages typically account for more than 70% of total household debt, with the remainder consisting of auto loans and personal loans such as credit cards. Personal loans grew by 12.8% year-on-year, higher than the 11.7% in the third quarter. Data from Credit Counselling Singapore (CCS) shows that last year, 2,588 people sought help from the organization, an increase of 26% compared to 2,056 people in 2024. It primarily provides credit counseling and guidance for those with unsecured loans such as credit card and personal loans. CCS General Manager Chen Huimin revealed in an interview that the main issues faced by debtors include reduced or lost employment income, overspending, and increased household expenses. About 70% of those seeking help are aged between 30 and 50, a demographic that typically has both parents and children, leading to a heavier financial burden. Since 2023, renovation loans have also become a major source of debt issues, possibly related to rising renovation costs. Chen Huimin believes that due to geopolitical factors, local households may become more cautious, such as reducing long-distance travel and saving expenses, which could lead to an increase in personal savings