About 1 in 35 Singaporeans is now a millionaire and the population of high net worth individuals in the island nation is set for strong growth, says a report from WealthInsight, a wealth consultancy firm.
“Singapore’s burgeoning financial markets, renowned private banking and superior quality of life are continuing to attract high net worth individuals from neighbouring countries. We’re currently seeing a large influx of Indian and Chinese millionaires into the country,” says head of WealthInsight Oliver Williams.
The report says that the millionaire population in Singapore is set to grow 18.3 per cent in the next five years to 188,000 by 2020 – or roughly 1 in 30 of the population. Singapore now has 154,000 millionaires, collectively holding $806.3 billion in net wealth.
According to WealthInsight, the number of Singapore millionaires increased by 17 per cent over the past five years, from 130,000 in 2010.
However, millionaires in Singapore have the lowest average wealth in Asia, says the report – an average of $5.2 million as compared to Indonesia’s $6.5 million, Asia’s highest.
“Though seemingly small, the changes in average wealth are hugely reflective of the nation’s equality,” says Williams. “The lower the average wealth of a country’s high net worth individual population, the more evenly that wealth is distributed among others. Germany, for example, has an average wealth of $3.2 million.”
The report also notes that the millionaire population in Singapore is likely to grow at a faster rate than its rival Hong Kong (15.6 per cent), in the next five years.
However, Hong Kong (193,000) currently has a higher millionaire population than Singapore (154,000). “Though Hong Kong has a much higher millionaire population than Singapore, recent events such as the umbrella revolution may have turned migratory high net worth individuals away from the city,” Williams added.