Singapore has the World’s Highest Population Density of Millionaires.
A report by Boston Consulting Group showed that 39% of the world’s wealth lies in the hands of top 1% of the world’s total population millionaire households.
The report said that Singapore has the highest density of millionaire households in the world. 16% of Singapore households have at least $ 1 million in assets. Switzerland ranked second, has 9.9% millionaire households of the total population proportion. Hong Kong, China came in fourth place, 8.7%; the United States ranked seventh, is 4.5%.
Singapore will become Asia’s largest Ultra High Net Worth Millionaire City
A report predicted that the ultra-high net worth millionaires in Singapore (UHNWI) will see the largest increase in the world’s cities in the next decade. Singapore therefore will surpass Tokyo as Asia’s largest number of ultra-high networth city.
The report predicts that by 2023, Singapore is expected to have up to 4900 Ultra High Net Worth Individuals with net assets worth more than $30 million, an increase of 55%.
Singapore’s Change of Direction
Singapore, located at the cross of the Pacific and Indian Ocean shipping routes, has a strong advantage in the international export trade for half a century. The international export trade once accounted for about 45 percent of Singapore’s total trade . With the international trade and re-exporting slowing down, Singapore had to re-strategise and began moving away from manufacturing. The new focus – financial services industry.
By promoting the development of private banking, wealth management and financial banking services, targeting ultra high net worth individuals in Asia-Pacific. Singapore is aiming to create a “East of Zurich”.
Singapore set to become a Global Financial Center & Asia-Pacific’s ‘Safe Haven’
Singapore last year had almost a quarter increase in assets under management, taking the city-state a major step towards being a global wealth management center.
Monetary Authority of Singapore released data show that the total assets under management the previous year was S$ 1.34 trillion compared to S$1.63 trillion last year, an increase of 22%. As comparison, the Swiss Bankers Association statistics show that last year the total assets managed in Switzerland was only 2.8 trillion Swiss francs. Singapore is slowing closing in on Switzerland.
A new generation of business leaders and entrepreneurs is growing rapidly in Asia. The demand for financial services has naturally increased, so that the gap between Singapore, Hong Kong, Switzerland and London is gradually narrowing.
Over the years, Singapore has rapidly established a good financial services infrastructure. Since the 1997 Asian financial crisis, Singapore government began to promote the development of offshore private banking businesses. By attracting a large number of the world’s top financial institutions to be headquartered here, it has allowed Singapore’s Private Banking industry to flourish in the Asia-Pacific region.
Many of the world’s top 30 finance and wealth management companies have been set up here. Citibank, one of the world’s largest by market capitalization, has just recently announced that due to local double-digit annual growth, its private banking unit will soon recruit more personnel in order to catch up with the strong business momentum.
Singapore has Six Major Advantages
- Singapore has successful offshore management experience. It has successfully implemented offshore financial services with the innovation of financial derivatives since the late 1970s. The implementation of Offshore Financial Center strategy has greatly increased its international competitiveness, and currently completes with the likes of Tokyo, Hong Kong and Shanghai as one of the major Asian financial centers.
- Singapore share similar Swiss banking secrecy laws and banking system. Asset management and private banking services are the two pillars of the Swiss financial sector, making Switzerland the world’s financial leaders. Switzerland’s success is due to the country’s banking secrecy laws. Money with Swiss banks are an absolute security. In the eyes of many, Singapore and Switzerland share the same values.
- Singapore has one of the the lowest tax rate amongst developed nations. Currently the amount of wealth assets under management in Singapore is estimated at US$2,000 billion dollars, while the Swiss has about 1.3 trillion euros worth of assets. Compared with Switzerland, the size of the assets under management in Singapore is small. However the growth of assets under the management of Swiss private banking was flat last year, as more and more investors began to abandon Switzerland, and shifting to low tax jurisdiction Singapore.
- Political stability with a strong legal framework and a skilled labor force. Always a major consideration for foreign investors.
- Singapore is well known as the Garden City. The Government of Singapore has strict laws and regulations governing the country, at the same time making it “Asia’s Most Livable City”. With excellent living conditions and living standards, personal Safety and Security are of utmost importance. There are hardly any violence, murder, drug abuse or street protest you can find.
- The world’s best airport, the world’s busiest seaports. And its efficient public transport infrastructure.
All these factors have always convinced foreign private investors of our business friendly environment. A PricewaterhouseCoopers survey of private bankers, more than half said they would choose Singapore as its Asian regional base.
The global economy is gradually shifting the balance of power from West to East. Therefore, Singapore is well positioned to be the Monaco of the East.