Singapore Has Highest Proportion of Millionaires

As World Millionaires Multiply, Singapore Holds Its Lead
by Venessa Wong
Friday, June 3, 2011

Overall, global wealth grew fastest in the Asia Pacific region last year. North America came in second.

Singapore seems modest by some measures: Median income among working households was only about S$5,700 (about US$4,500) in 2010, according to the Singapore Department of Statistics. Yet in this small island nation of only 5 million, known for extravagant shopping, high-end restaurants, and draconian chewing-gum laws, nearly one in every six households has more than $1 million in assets, making it the densest population of wealthy households in the world, according to a new report by Boston Consulting Group.

As the financial markets improved last year, global wealth grew in nearly every region in the world. The fastest, at 17.1 percent, came in the Asia Pacific region (excluding Japan), followed by North America at 10.2 percent. "Global wealth is at an all-time high," says BCG Senior Partner Monish Kumar.

According to BCG's study, global assets under management grew 8 percent, to $121.8 trillion, about $20 trillion above the level during the depths of the global financial crisis. The number of millionaire households grew 12.2 percent, to 12.5 million, and although they represented only 0.9 percent of all households, they held 39 percent of global wealth.

Only Liquid Assets
BCG looked at 62 markets covering more than 98 percent of global GDP and measured assets that included cash deposits, money market funds, listed securities held directly or indirectly through managed investments, and onshore and offshore assets — but not wealth attributed to investors' own businesses, residences, or luxury goods.

Wealth in North America, the world's richest region, had the largest dollar-value gain: $3.6 trillion. The U.S. remains home to the most millionaire households — 5,220,000 (up 10.7 percent from 4,715,0000 households in 2009) — although the share was only 4.5 percent of all households, BCG data show.

While China and India are driving wealth creation in Asia, Singapore also grew at a fast pace. The number of millionaire households in Singapore jumped about 38.6 percent in 2010, to 170,000, from nearly 123,000 in 2009, according to BCG data. The country has had the largest proportion of millionaire households for several years, and the share continues to grow: Singapore's millionaire households increased to 15.5 percent of total households in 2010 from 11.4 percent in 2009.

The rise is due to Singapore's expanding economy, which has grown mainly on such exports as consumer electronics and pharmaceuticals, as well as financial services. Real GDP growth averaged 7.1 percent per year from 2004 to 2007, according to the CIA World Factbook and reached nearly 14.7 percent in 2010—faster than China's 10.3 percent growth rate.

Not Just Tycoons

Among Singapore's well-known billionaires are Wee Cho Yaw, chairman of United Overseas Bank Group (Singapore: UOB - News), as well as the families of the late real estate mogul Ng Teng Fong and financier and hotelier Kho Teck Phuat. Still, many of the country's wealthy are not tycoons but entrepreneurs and affluent immigrants, says Tjun Tang, partner and managing director of BCG in Hong Kong. Other billionaires include philanthropist Richard Chandler in New Zealand and real estate developer Zhong Sheng Jian in China.

City-states such as Singapore, along with other small countries and administrative regions with a high density of millionaire households, such as Switzerland, Qatar, and Hong Kong, tend to be hubs of commerce and finance and have greater economic generation within a smaller population, says Tang.

Another factor driving wealth: Singapore's investor scheme, which grants permanent residence to certain investors, says Tang. According to the website of Janus Corporate Solutions, people can "invest [their] way to Singapore permanent residence" by investing more than a certain minimum in a new business startup or Global Investor Program-approved fund or in expanding an existing business in Singapore.

More Money, But Higher Costs

With this wealthy population comes a relatively high cost of living. In a 2010 cost-of-living survey of 214 cities by consulting firm Mercer, Singapore is the 11th most expensive city in the world for expatriates, on a par with Oslo and more expensive than New York City.

Mercer also gave Singapore high scores in its 2010 quality-of-life study of 221 cities: It was the top-scoring Asian city, followed by Tokyo.

The economic trends remain a concern around the world, yet BCG expects that with strong capital markets, GDP growth, and increased savings, global wealth will grow at a compound annual growth rate of 5.9 percent through 2015. Singapore has already led with the highest proportion of millionaire households for several years. With the Asia-Pacific region's share of global wealth expected to increase to 23 percent in 2015, from 18 percent in 2010, Tang says, "the trends seem to be in Singapore's favor."

Here are the countries with the highest proportion of millionaires:

No. 1: Singapore
Millionaire households as a share of country's total households: 15.5%
Number of millionaire households: 170,000
2009 ranking: 1

Singapore is home to the world's greatest concentration of millionaire households. Deloitte expects that by 2015, it may surpass Switzerland in per capita wealth among millionaire households. Singapore is Asia's eighth-most-expensive location, according to ECA International.

No. 2: Switzerland
Millionaire households as a share of country's total households: 9.9%
Number of millionaire households: 330,000
2009 ranking: 3

With nearly one in 10 households in Switzerland a millionaire household, the country is one of the world's most expensive. Residents of Geneva and Zurich pay about 20 percent more on average for products, services, and accommodation than do people in other Western European cities, according to a UBS study. Food prices in particular are high — about 45 percent above levels in the rest of Western Europe.

No. 3: Qatar
Millionaire households as a share of country's total households: 8.9%
Number of millionaire households: 30,000
2009 ranking: 2

Qatar is the world's fastest-growing economy, as well as one of the richest: Annual GDP growth is estimated at 19.4 percent in 2010, with per capita GDP at $145,300, according to the CIA's World Factbook. The country has the world's third-largest reserves of natural gas, with oil and gas accounting for more than half of GDP, 85 percent of export earnings, and 70 percent of government revenues.

No. 4: Hong Kong
Millionaire households as a share of country's total households: 8.6%
Number of millionaire households: 200,000
2009 ranking: 4

In the past decade, Hong Kong's manufacturing industry moved to mainland China and its service industry grew to more than 90 percent of GDP. While Hong Kong's GDP fell in 2009 as a result of the global financial crisis, recovery began in the third quarter of 2009 and in 2010 the economy grew by nearly 6.8 percent, according to the CIA's World Factbook. The housing market also continues to grow tremendously: In 2010 Q4, home prices were up 20.1 percent year-on-year, according to Knight Frank.

No. 5: Kuwait
Millionaire households as a share of country's total households: 8.5%
Number of millionaire households: 40,000
2009 ranking: 5

Petroleum accounts for nearly half Kuwait's GDP, 95 percent of export revenues, and 95 percent of government income, according to the CIA's World Factbook. The rise in global oil prices has boosted government budget revenue and revived government consumption and economic growth.

No. 6: United Arab Emirates
Millionaire households as a share of country's total households: 5%
Number of millionaire households: 50,000
2009 ranking: 6

Since oil was discovered in the U.A.E. more than 30 years ago, the country has transformed itself from an impoverished region to a modern state with a high standard of living, high per capita income, and a sizable annual trade surplus, according to the CIA's World Factbook. Oil and gas output represents about 25 percent of GDP.

No. 7: United States
Millionaire households as a share of country's total households: 4.5%
Number of millionaire households: 5,220,000
2009 ranking: 7

After declining in 2008, the U.S. millionaire population grew in 2009 and continued to rebound in 2010, according to BCG. While the economy has shown only slight improvement, the U.S. still has by far the most millionaire households of any country, as well as the largest number of ultra-high-net-worth households (those with more than $100 million in assets under management).

No. 8: Taiwan
Millionaire households as a share of country's total households: 3.6%
Number of millionaire households: 280,000
2009 ranking: 8

Taiwan has a widening wealth gap: In 2009, the top quintile of income earners made 6.34 times as much as the bottom quintile, up from 5.5 times 10 years ago, according to the Directorate General of Budget, Accounting, and Statistics. The government recently considered passing a luxury tax on: non-owner occupied homes sold within two years of purchase; automobiles, yachts, helicopters, and airplanes that cost more than TWD3 million (about $104,700); and ivory, coral, furs, and furniture worth more than TWD500,000 (about $17,400), reported the Christian Science Monitor.

No. 9: Israel
Millionaire households as a share of country's total households: 3.4%
Number of millionaire households: 80,000
2009 ranking: 10

The share of millionaire households remains high in Israel, which has shown signs of economic recovery. Following growth of 4 percent in 2008, Israel's GDP slipped by 0.2 percent in 2009, then rose by 3.4 percent in 2010 as exports rebounded, according to the CIA's World Factbook. Home prices in Israel were up year-on-year during each quarter in 2010, show data from Knight Frank.

No. 10: Belgium
Millionaire households as a share of country's total households: 3.1%
Number of millionaire households: 140,000
2009 ranking: 9

Belgium has the greatest concentration of millionaires among EU member countries. Residents do not pay a wealth tax, but are subject to personal income tax, as well as withholding tax, social security, inheritance and gift tax, and communal taxes, according to Deloitte Touche Tohmatsu.

Singapore is a Millionaire's country

Welcome to Millionaire Country!
Despite a dip, Singapore still has highest concentration of wealthy households
Arthur Sim
The Business Times
Thanks to the global economic crisis, wealth destruction has slashed the net worth of the rich all over. Singapore, however, has managed to stay on top with the highest concentration of millionaires.

According to a report by the Boston Consulting Group (BCG) 8.5% of Singapore households had more than US$1 million in assets under management (AUM) in 2008.

The global economic crisis has, however, eroded some wealth here. According to earlier reports, BCG found that Singapore had the highest concentration of millionaires in 2007 too, but the percentage then was higher: 10.6%.

Switzerland has the second highest concentration of millionaires at 6.6% followed by Kuwait with 5.1%.

Globally, the picture was not as rosy.

The number of millionaire households worldwide fell from 11 million to about 9 million, representing a drop of 17.8%. The decline was steepest in North America and Europe, at 22% in both regions, although the US continued to have the most millionaire households at nearly 4 million.

Interestingly, the BCG report found that the crisis narrowed the gap between the wealthy and non-wealthy. Wealth owned by households with less than US$100,000 in AUM increased 2% in 2008; it declined in all other segments. Among households with more than $5 million in AUM, wealth fell 21.5%.

This was attributed to the number of non-wealthy households rising 4% and the number of wealthy households declining 12%.

Things could start looking up next year.

'Wealth will begin a slow recovery in 2010 but may not reach its pre-crisis level until 2013,' said Ranu Dayal, a BCG senior partner and managing director based in Singapore. 'We expect wealth to grow at an average annual rate of about 4% from year-end 2008 through 2013.'

Mr Dayal also believes wealth will grow fastest in Asia-Pacific (excluding Japan) at 9.5% per year over the same period.

Still, Europe is currently the richest region in the world, after nudging out North America.

Europe had US$32.7 trillion in AUM in 2008, down 5.8 per cent from the previous year, followed by North America, with US$29.3 trillion.

Offshore wealth fell to US$6.7 trillion in 2008, down from US$7.3 trillion in 2007. Switzerland remained the largest offshore centre; it accounted for US$1.8 trillion, or 28 per cent of offshore wealth last year. Together, the UK, Channel Islands, Isle of Man and Dublin accounted for US$1.5 trillion while the US accounted for US$0.4 trillion.

Singapore accounted for US$0.5 trillion of offshore wealth while Hong Kong accounted for US$0.2 trillion.

BCG said that increased regulatory scrutiny is changing the landscape of cross-border wealth management, with pressure mounting on offshore centres that have based their edge primarily on tax avoidance. 'Once their tax and legal advantages evaporate, so too will their appeal,' Mr Dayal said. 'Being inconspicuous is a tenuous value proposition in an era of increasing oversight,' he added.

BCG does, however, believe that Singapore and Hong Kong will continue to benefit from their proximity to other Asian countries, where wealth is expected to stage a faster recovery.
Quote:
Singapore now has 77,000 millionaires
我报

Singapore has climbed the ranks of the millionaire club: It is now No. 7 in the world's top 10 list of fastest-growing populations of high rollers.

The country saw a 15.3% rise - or an addition of 10,000 people - to 77,000 millionaires, according to the 12th annual World Wealth Report, prepared by United States investment bank Merrill Lynch and information technology group Capgemini.

The report defines a millionaire as a person possessing more than US$1 million (S$1.37 million) in net assets, excluding his main residence and other consumables.

Asia was home to some of the world's fastest-growing populations of millionaires, according to the report.

Topping the top-10 list was India, followed by China. For India, the number of its millionaires jumped 22.7% last year to 123,000, while the number of high rollers in China rose 20.3% to 415,000.

Other countries in the top 10 list are Brazil, which took the third spot, followed by South Korea, Indonesia, Slovakia, Singapore, the United Arab Emirates, Czech Republic and Russia.

Despite financial turmoil and significant increases in the price of luxury goods, the report said the world's millionaires have an 'unquenchable appetite' for luxury items.

Jewellery, gems and watches attracted the largest share of these 'passion investment allocations' in Asia and the Middle East, the report said.

Globally, these high-priced toys tend to be art collections, yachts, personal jets and similar items, said Merrill Lynch and Capgemini.

But there are regional differences, with Asia's millionaires allocating the most to items like luxury and 'experiential' travel, visits to high-end spas and designer clothes, they said.

Asian millionaires' wealth would grow annually by 7.9% to US$13.9 trillion in 2012, against US$13.5 trillion among Europe's wealthiest, or 4.9% annual growth, the report said.

The number of millionaires in the Asia-Pacific grew 8.7% from a year ago to 2.8million people and their combined wealth soared 12.5% to US$9.5 trillion, excluding the value of their homes and consumables.

'In the Asia-Pacific region, wealth is being created at an unprecedented rate,' said Mr Kong Eng Huat, managing director (South Asia Market) at Merrill Lynch Global Wealth Management.

'Notwithstanding the recent dislocation in global markets, the robust economies in Asia are increasingly being driven by the domestic consumption story and continue to spur wealth creation in the region.'

Mr Kong added that, in 5 years' time, millionaires in Asia would have more combined wealth than those in Europe.

But the rich are also facing the challenges of slower growth in developed markets hit by the credit crisis as well as the risk of high inflation in emerging markets, the report said.

Rich crowding out ordinary Singaporeans

From: "truth"
Date: Wed, 16 Sep 2009 02:55:14 GMT
Local: Wed, Sep 16 2009 10:55 am
Subject: Rich crowding out ordinary Singaporeans

truth comment: the poor has got no place in the singapore which
the papist leegime created. the statistics are confirming this trend.
more and more ordinary singaporeans will have to move to the
poor areas around the region to live out their sunset years. will u
continue to support the papist leegime policy of turning singapore
into a place for the rich only ?
http://www.huffingtonpost.com/2009/09/15/wook-kundor-age-107-seeks_n_...
Singapore most tycoon-dense

NEW YORK - Singapore has the highest density of millionaires at 8.5
per cent of the population, according to a Boston Consulting Group study.

Switzerland is second, at 6.6 per cent, followed by Kuwait, at 5.1 per
cent.

In fourth place is the United Arab Emirates, at 4.5 per cent, then the
United States, at 3.5 per cent.

The number of millionaires worldwide shrank 17.8 per cent to nine
million, as the global recession caused the first worldwide contraction in
assets under management in nearly a decade.

Europe and North America were hardest hit in that regard, posting 22
per cent declines.

The US still boasts 3.9 million millionaires, the highest worldwide.

Wealth dropped 11.7 per cent to US$92.4 trillion (S$131.5 trillion),
and a return to 2007 levels of wealth will take six years, said the study
that examined assets overseen by the asset-management industry.

Also hit hard were offshore wealth centres like Switzerland and the
Caribbean, where assets declined by 8 per cent to US$6.7 trillion last year
from US$7.3 trillion in 2007.

Europe posted a slightly higher US$32.7 trillion of assets under
management, edging out North America for the wealthiest region, though total
wealth in the region dropped 5.8 per cent.

Latin America was the only region to report a gain in assets under
management, posting a 3 per cent uptick from US$2.4 trillion in 2007 to
US$2.5 trillion last year.

Best way to be a multi-millionaire in Singapore

From: "WanChonRen"
Date: Sun, 5 Jul 2009 10:31:00 +0800
Subject: There are no government-linked companies there competing against the private sectors

"WanChonRen" wrote in message

> This is straight forward kiasuism. In a dictatorial Singapore, it is still
> best to be a scholar. Work for the PAP government in a public sector. Be a
> yes-man and climbs the corporate ladder with the help of a strong crony's
> hand. You will become a multi-millionaire just like any of the Royal Lee
> Family and their exclusive ruling elites and cronies.
> http://www.asiaone.com/Business/SME%2BCentral/Prime%2BMovers/Story/A1...

Mr. Wong quoted:

'If you look at those markets, they differ from Singapore in one key aspect:
there are hardly any government-linked companies competing against private
sector,' he said. 'This key difference means that for the past few decades,
MNCs and GLCs have been tasked with driving the economies in Singapore. The
market in Singapore was not as conducive as that of Hong Kong and Taiwan in
building entrepreneurial spirit.

'In addition, the most critical factor in the entrepreneurial spirit is risk
reward ratio, which is clearly low in comparison with Hong Kong and Taiwan.
Who wants to be an entrepreneur if you, as a young and highly qualified
graduate, can achieve wealth without taking any risk of your own money by
working for the government? The government's policy of paying civil servants
well has a negative impact on entrepreneurial spirit.'

He is of the view that Singapore will never be able to reach the same level
of entrepreneurial spirit as that of Hong Kong or Taiwan, unless it
restructures the reward system for risk takers. 'But then again, is their
society better than ours, especially when you take into account the social
order and justice, social harmony, etc?' he asked rhetorically