02-06-2011, 06:12 AM
This is just one reason why it's so tough living in Singapore - there are way too many rich people living here! Makes one feel like it's a hopeless situation trying to build wealth as the (already) rich simply get even richer! Not to mention they also flaunt their wealth in extremely conspicuous ways!
Business Times - 02 Jun 2011
S'pore tops the chart again when it comes to millionaires
15.5% of households have at least US$1m in assets under management: report
By MICHELLE QUAH
(SINGAPORE) Think you know which country has the highest proportion of millionaires in the world? You might want to guess again.
According to The Boston Consulting Group's (BCG) latest global wealth report, it is not the United States, not Switzerland and not even Saudi Arabia.
Instead, the honour belongs yet again (yes, again) to Singapore - with one in six, or 15.5 per cent, of all households having at least US$1 million in assets under management (AuM) in 2010.
Translated into absolute numbers, that's about 170,000 households here with more than US$1 million in AuM (including cash deposits, money market funds, listed securities, onshore and offshore assets). The number represents an almost one-third growth from the year before, which makes Singapore also the country with the fastest-growing number of millionaire households.
Switzerland is next in line with the second highest concentration of millionaire households - and also the highest in Europe - with 9.9 per cent, and about 330,000 households in total.
Cutting the numbers another way, the US had the largest number of what BCG terms the 'ultra high net worth' (UHNW) households - those with more than US$100 million in AuM - at almost 2,700 households; Saudi Arabia had the highest concentration of UHNW households at 18 per 100,000 households, followed by Switzerland, Hong Kong, Kuwait and Austria.
The global management consulting firm unveiled the numbers in its eleventh annual Global Wealth report titled Shaping a New Tomorrow: How to Capitalize on the Momentum of Change, a copy of which was sent to The Business Times.
In that report, BCG said global wealth climbed by 8.0 per cent in 2010 to US$121.8 trillion, or about US$20 trillion above where it stood during the depths of the financial crisis.
North America had the largest absolute gain of any regional wealth market in AuM, at US$3.6 trillion, and the second-highest growth rate, at 10.2 per cent. Its US$38.2 trillion in AuM made it the world's richest region, with nearly one-third of global wealth.
In Europe, wealth grew at a below-average rate of 4.8 per cent, but the region still had a gain of US$1.7 trillion in AuM.
And wealth grew fastest in the Asia-Pacific (excluding Japan), at a 17.1 per cent rate. In Japan, wealth declined by 0.2 per cent to US$16.8 trillion - a marked change from hallowed days before when, even as recently as 2008, the country accounted for more than half of all the wealth in the Asia-Pacific. In 2010, Japan accounted for about 44 per cent.
In terms of individual countries, the nations showing the largest absolute gains in wealth were the US, China, the United Kingdom and India.
As for millionaire households, the total number of them represented just 0.9 per cent of the world's households - but they owned 39 per cent of global wealth, up from 37 per cent in 2009. The number of millionaire households increased by 12.2 per cent in 2010 to about 12.5 million.
The US had by far the most millionaire households with 5.2 million, followed by Japan, China, the UK and Germany.
Perhaps not surprisingly, three of the six densest millionaire populations were in the Middle East - in Qatar, Kuwait and the United Arab Emirates.
And, in line with the rate of growth of wealth, the proportion of wealth owned by millionaire households increased the most in Asia-Pacific - at 2.9 percentage points - followed by North America, at 1.3 percentage points.
Tjun Tang, a BCG partner who worked on the report, said the firm expects global wealth to grow at a compound annual rate of 5.9 per cent from year-end 2010 through 2015 - to about US$162 trillion - driven by the performance of the capital markets and the growth of GDP in countries around the world.
Wealth is expected to grow fastest in emerging markets; in India and China, for example, it is expected to increase at a compound annual rate of 18 per cent and 14 per cent, respectively. As a result, the Asia-Pacific region's share of global wealth (ex-Japan) is projected to rise from 18 per cent in 2010 to 23 per cent in 2015.
The Straits Times
Jun 2, 2011
As thick as... millionaires in S'pore
Concentration of such households here is the highest in the world
By Gabriel Chen, Finance Correspondent
SINGAPORE has once again emerged as the country with the highest concentration of millionaires in the world.
A total of 15.5 per cent of households here hold more than US$1 million (S$1.23 million) - defined as those with investable assets of over US$1 million, exclusive of owner-occupied property and items like art. Last year, the proportion was 11.4 per cent.
Millionaires here are much thicker on the ground here than in second-placed Switzerland, where 9.9 per cent belongs to the club. Qatar was in the No. 3 spot with 8.9 per cent followed by Hong Kong with 8.7 per cent, said a new report by the Boston Consulting Group (BCG).
In terms of absolute numbers, the number of millionaire households here grew by almost 33 per cent to 170,000 last year, after jumping 35 per cent a year earlier, placing Singapore ahead of China (31 per cent), Indonesia (26 per cent) and Thailand (25 per cent).
Only Australia minted millionaire households at a faster rate - 36 per cent.
The United States had the most millionaire households at 5.2 million, followed by Japan, China, Britain, and Germany.
Economists and wealth managers cite a number of factors as to why Singapore is experiencing enormous growth in the number of millionaire households.
'Singaporeans saw their wealth surge because of the stronger Singapore dollar, sharp economic rebound and soaring asset prices, including property,' said Bank of America Merrill Lynch economist Chua Hak Bin. 'Openness to foreign talent and wealthy 'new' Singaporeans probably also expanded the number of millionaires.'
UBS Wealth Management Research chief investment strategist Kelvin Tay said: 'The starting point for the burgeoning number of millionaire households here lies in the strong fundamentals of these households during the credit crisis.'
'As much as 70 per cent of household assets were sitting in cash. Therefore, not only did these households emerge relatively unscathed from the crisis, they were also well placed to capitalise on the opportunities in both the stock and property markets when real interest rates plunged into deeply negative territory.'
A case in point is 65-year-old Felix Ong, former chairman of electronics component firm Seksun, which sold all its assets and business undertakings for $295.1 million to Supernova (Cayman) in 2008.
Mr Ong collected a substantial eight-figure sum from the sale, but told The Straits Times his wealth increased further after the stocks, bonds and several properties which he bought during the downturn rose sharply in value.
The BCG study showed the wealthy are starting to move more money back into stocks, with 35 per cent of total assets of US$121.8 trillion now parked in equities, up from 33 per cent last year but still four percentage points lower than 2007.
The study also highlighted that about 1 per cent of households have 39 per cent of the world's wealth, pointing to increased inequalities after the crisis.
'Income inequality is widening in Singapore,' said United Overseas Bank senior economist Alvin Liew. 'A lot more higher value jobs are created here and if you are in these jobs, you'll be expecting higher wages. On the other side of the spectrum, wage levels of lower-skilled workers have not moved up as fast.'
Private bankers say BCG's findings suggest that banks here which cater to the well-heeled are in the right place given Asia's rapid wealth creation. 'While Asian wealth is generated in the recent years, Asian high-net-worth individuals are more conservative in the way they invest,' said Mr Renato de Guzman, chief executive of Bank of Singapore.
'They traditionally like to invest in deposits, equities and property. Increasingly, Asian high-net-worth investors are getting more sophisticated and are diversifying away from US dollars and more into Asian currencies such as Singapore dollars, Korean won and other emerging markets currencies such as the Chinese yuan and Indonesian rupiah.'
gabrielc@sph.com.sg
Business Times - 02 Jun 2011
S'pore tops the chart again when it comes to millionaires
15.5% of households have at least US$1m in assets under management: report
By MICHELLE QUAH
(SINGAPORE) Think you know which country has the highest proportion of millionaires in the world? You might want to guess again.
According to The Boston Consulting Group's (BCG) latest global wealth report, it is not the United States, not Switzerland and not even Saudi Arabia.
Instead, the honour belongs yet again (yes, again) to Singapore - with one in six, or 15.5 per cent, of all households having at least US$1 million in assets under management (AuM) in 2010.
Translated into absolute numbers, that's about 170,000 households here with more than US$1 million in AuM (including cash deposits, money market funds, listed securities, onshore and offshore assets). The number represents an almost one-third growth from the year before, which makes Singapore also the country with the fastest-growing number of millionaire households.
Switzerland is next in line with the second highest concentration of millionaire households - and also the highest in Europe - with 9.9 per cent, and about 330,000 households in total.
Cutting the numbers another way, the US had the largest number of what BCG terms the 'ultra high net worth' (UHNW) households - those with more than US$100 million in AuM - at almost 2,700 households; Saudi Arabia had the highest concentration of UHNW households at 18 per 100,000 households, followed by Switzerland, Hong Kong, Kuwait and Austria.
The global management consulting firm unveiled the numbers in its eleventh annual Global Wealth report titled Shaping a New Tomorrow: How to Capitalize on the Momentum of Change, a copy of which was sent to The Business Times.
In that report, BCG said global wealth climbed by 8.0 per cent in 2010 to US$121.8 trillion, or about US$20 trillion above where it stood during the depths of the financial crisis.
North America had the largest absolute gain of any regional wealth market in AuM, at US$3.6 trillion, and the second-highest growth rate, at 10.2 per cent. Its US$38.2 trillion in AuM made it the world's richest region, with nearly one-third of global wealth.
In Europe, wealth grew at a below-average rate of 4.8 per cent, but the region still had a gain of US$1.7 trillion in AuM.
And wealth grew fastest in the Asia-Pacific (excluding Japan), at a 17.1 per cent rate. In Japan, wealth declined by 0.2 per cent to US$16.8 trillion - a marked change from hallowed days before when, even as recently as 2008, the country accounted for more than half of all the wealth in the Asia-Pacific. In 2010, Japan accounted for about 44 per cent.
In terms of individual countries, the nations showing the largest absolute gains in wealth were the US, China, the United Kingdom and India.
As for millionaire households, the total number of them represented just 0.9 per cent of the world's households - but they owned 39 per cent of global wealth, up from 37 per cent in 2009. The number of millionaire households increased by 12.2 per cent in 2010 to about 12.5 million.
The US had by far the most millionaire households with 5.2 million, followed by Japan, China, the UK and Germany.
Perhaps not surprisingly, three of the six densest millionaire populations were in the Middle East - in Qatar, Kuwait and the United Arab Emirates.
And, in line with the rate of growth of wealth, the proportion of wealth owned by millionaire households increased the most in Asia-Pacific - at 2.9 percentage points - followed by North America, at 1.3 percentage points.
Tjun Tang, a BCG partner who worked on the report, said the firm expects global wealth to grow at a compound annual rate of 5.9 per cent from year-end 2010 through 2015 - to about US$162 trillion - driven by the performance of the capital markets and the growth of GDP in countries around the world.
Wealth is expected to grow fastest in emerging markets; in India and China, for example, it is expected to increase at a compound annual rate of 18 per cent and 14 per cent, respectively. As a result, the Asia-Pacific region's share of global wealth (ex-Japan) is projected to rise from 18 per cent in 2010 to 23 per cent in 2015.
The Straits Times
Jun 2, 2011
As thick as... millionaires in S'pore
Concentration of such households here is the highest in the world
By Gabriel Chen, Finance Correspondent
SINGAPORE has once again emerged as the country with the highest concentration of millionaires in the world.
A total of 15.5 per cent of households here hold more than US$1 million (S$1.23 million) - defined as those with investable assets of over US$1 million, exclusive of owner-occupied property and items like art. Last year, the proportion was 11.4 per cent.
Millionaires here are much thicker on the ground here than in second-placed Switzerland, where 9.9 per cent belongs to the club. Qatar was in the No. 3 spot with 8.9 per cent followed by Hong Kong with 8.7 per cent, said a new report by the Boston Consulting Group (BCG).
In terms of absolute numbers, the number of millionaire households here grew by almost 33 per cent to 170,000 last year, after jumping 35 per cent a year earlier, placing Singapore ahead of China (31 per cent), Indonesia (26 per cent) and Thailand (25 per cent).
Only Australia minted millionaire households at a faster rate - 36 per cent.
The United States had the most millionaire households at 5.2 million, followed by Japan, China, Britain, and Germany.
Economists and wealth managers cite a number of factors as to why Singapore is experiencing enormous growth in the number of millionaire households.
'Singaporeans saw their wealth surge because of the stronger Singapore dollar, sharp economic rebound and soaring asset prices, including property,' said Bank of America Merrill Lynch economist Chua Hak Bin. 'Openness to foreign talent and wealthy 'new' Singaporeans probably also expanded the number of millionaires.'
UBS Wealth Management Research chief investment strategist Kelvin Tay said: 'The starting point for the burgeoning number of millionaire households here lies in the strong fundamentals of these households during the credit crisis.'
'As much as 70 per cent of household assets were sitting in cash. Therefore, not only did these households emerge relatively unscathed from the crisis, they were also well placed to capitalise on the opportunities in both the stock and property markets when real interest rates plunged into deeply negative territory.'
A case in point is 65-year-old Felix Ong, former chairman of electronics component firm Seksun, which sold all its assets and business undertakings for $295.1 million to Supernova (Cayman) in 2008.
Mr Ong collected a substantial eight-figure sum from the sale, but told The Straits Times his wealth increased further after the stocks, bonds and several properties which he bought during the downturn rose sharply in value.
The BCG study showed the wealthy are starting to move more money back into stocks, with 35 per cent of total assets of US$121.8 trillion now parked in equities, up from 33 per cent last year but still four percentage points lower than 2007.
The study also highlighted that about 1 per cent of households have 39 per cent of the world's wealth, pointing to increased inequalities after the crisis.
'Income inequality is widening in Singapore,' said United Overseas Bank senior economist Alvin Liew. 'A lot more higher value jobs are created here and if you are in these jobs, you'll be expecting higher wages. On the other side of the spectrum, wage levels of lower-skilled workers have not moved up as fast.'
Private bankers say BCG's findings suggest that banks here which cater to the well-heeled are in the right place given Asia's rapid wealth creation. 'While Asian wealth is generated in the recent years, Asian high-net-worth individuals are more conservative in the way they invest,' said Mr Renato de Guzman, chief executive of Bank of Singapore.
'They traditionally like to invest in deposits, equities and property. Increasingly, Asian high-net-worth investors are getting more sophisticated and are diversifying away from US dollars and more into Asian currencies such as Singapore dollars, Korean won and other emerging markets currencies such as the Chinese yuan and Indonesian rupiah.'
gabrielc@sph.com.sg
