Economists say measures to reduce the gap may not come anytime soon, and even the city state's government has hinted little could be done about the problem in the near term as the economy faces up to the challenges of globalization.

Deputy Prime Minister Lee Hsien Loong said the government, which rejects western-style welfare schemes, could help the lower-income group by "making sure that they continue to have income growth."

The ruling People's Action Party (PAP) has often said Singapore cannot afford to dish out generous social assistance schemes found in the west, as this would eventually erode the competitive edge of its citizens.

It is, however, encouraging the lower-income group to upgrade its skills by increasing the number of training programs, starting with computer literacy. But this would only yield dividends in the longer term.

"All we hear from the PAP is empty words, that the low-income earners have to improve themselves. It is adding insult to injury," said J.B. Jeyaretnam, secretary general of the WP and long-time foe of the PAP.

The WP warned that adopting a hands-off policy towards the widening income gap would have grave social consequences.

Prime Minister Goh Chok Tong has time and again reminded Singaporeans about the need to constantly upgrade their skills, especially in the Internet age where fast-changing technology is changing the traditional rules of competition.

The income divide was reflected in figures released last month that showed the lower income group was the worst-hit during the 1998-99 economic downturn, with monthly wages skidding 34 percent from an average of S$746 (US$433) in 1998 to 492 dollars in 1999.

The bottom 10 percent of the population earned less than an average of S$1000 a month while the top 10 percent saw average income rising from S$15,053 to S$15,541.

An income of S$1000 a month for a family of four is regarded as the poverty line.

On the other side of the yawning income gap, Singaporeans have crashed into the ranks of the world's richest people. According to US magazine Forbes, four Singaporeans made it onto its list of the world's billionaires.

Property tycoon Ng Teng Fong and his son Robert, investor Khoo Teck Puat and hotelier Kwek Leng Beng had a combined worth of over US$8 billion, joining the elite roster headed by software king Bill Gates.

Back at the other end of the scale, the National Council of Social Services said 663 families sought assistance with paying for rent and utilities in the year ending March 1999, sharply up from 369 the year before.

NTUC FairPrice, a supermarket chain managed by the National Trades Union Congress -- a state-linked workers' union -- said it helped shoppers save S$12 million during the recession by lowering the prices of essential items.

The National Wages Council -- a tripartite organisation involving the government, employers and unions -- said it did not want to recommend specific wage increases as some sectors of the economy were still suffering the effects of the regional recession.

It also cautioned against matching pay rises with productivity growth.

Even the economy's strong rebound from the Asian crisis would not provide much cheer to the lower income group.

"The indication is that the income spread is likely to widen over time," said chief government statistician Paul Cheung.

"While we will still enjoy a good wage growth, the gap will widen in favour of high-income earners," he added.