Singapore: A Breeding Ground For Millionaires
Singapore has once again bagged the top spot for having the highest number of millionaires in the globe, based on a study conducted by the Boston Consulting Group (BCG).
The study showed that the total households with investments amounting to over SG $1.26 million have increased to 188,000 last year. In terms of ratio, this reflects that there are one millionaire household among six households in the city-state.
The study has also emphasized how Singapore’s population of wealthy households have grown in terms of private financial assets. According to the survey, 10 in 100,000 households have over SG $129 million (US $100 million), which places them in the “ultra-high-net-worth” bracket. This puts Singapore one step ahead of Hong Kong, and a step behind Switzerland.
The appreciation of the value of the Singapore dollar has also helped boost the number of millionaire households in the said country. Singapore currently ranks 11th in terms of the overall number of millionaire households.
Finexis Advisory CEO Warren Lim said in an interview with Yahoo News Singapore that these millionaires were also birthed by strong investments in the real estate sector.
If the growth rate in terms of private wealth remains unchanged in the next 15 to 20 years, Singapore and Hong Kong (combined) are not far from overtaking Switzerland as the biggest offshore booking centre in the world.
Neighboring Southeast Asian country Indonesia has also seen an increase in private wealth investments. According to a similar report, the combined net worth of ultra-high-net-worth people in the country has reached SG $161 billion (US $125 billion). This means that 25 Indonesians are worth more than SG $1.29 billion.
The overall private wealth across the Asia-Pacific has increased by 10.7 percent in 2011, as realized in a total of SG $30.6 trillion (US $23.7 trillion). On the other hand, private wealth in Europe, North America, and Japan have decreased by 0.4 percent, 0.9 percent, and 2 percent respectively.