17% of Singapore households are millionaires

Yet another ridiculous statistic! Does it include the value of your live-in property??

The Straits Times
Jun 2, 2012
Invest
17% of Singapore households are millionaires

By Melissa Tan

SINGAPORE leads the world in terms of the proportion of households classed as millionaires after the ranks of the wealthy swelled again last year.

A new study has found that the number of households with investable assets of US$1 million (S$1.26 million) or more rose 14 per cent to 188,000 last year. That means 17.1 per cent of households - or one in six - are millionaires.

The findings come from management consultancy Boston Consulting Group (BCG) in its Global Wealth Report 2012, which does not include property and other non-financial assets.

In 2010, 165,000 households were classed as millionaires.

The latest jump comes even though the economy grew only 4.9 per cent last year, following a 14.8 per cent surge in 2010.

BCG said the 17.1 per cent figure was the 'highest density' of millionaire households across all the 63 countries it surveyed.

Singapore came in 11th in terms of the absolute number of millionaire households.

That figure was definitely boosted by the appreciation of the Singapore dollar over the past few years, while wealth was generated by the strong growth in the property market, said Mr Warren Lim, chief executive of Finexis Advisory.

He noted that households could have also made money last year if they caught the right timing in the stock market.

Those who bought property in 2005 and 2006 and sold them recently would have seen solid gains, he said.

He added that his financial advisory firm has seen a rise of about 20 per cent in the number of wealthy clients coming to his firm for advice in the past year.

Singapore was slightly lower down the ladder when it came to ultra-high net worth households, which BCG defined as those holding over US$100 million in wealth.

It had 108,000 of these ultra-rich households last year. This is roughly equivalent to 10 out of every 100,000 households, according to BCG.

While Singapore was in 26th position when ranked by absolute numbers, it was still No. 2 in terms of the density of such households.

The Republic was trumped narrowly by Switzerland, where 11 out of every 100,000 households were considered ultra- high net worth last year.

'Overall, global growth in private wealth is clearly being driven by rapidly developing economies in the 'new world', not by the 'old world' of traditional, mature ones,' BCG wrote in its report.

The Asia-Pacific region grew richer at a faster rate than most other regions last year, due more to solid economic growth than to equity market gains.

Private financial wealth in Asia excluding Japan expanded 10.7 per cent last year to about US$23.7 trillion. The region is expected to hold US$40.1 trillion in wealth by 2016.

In contrast, developed economies like the US, Europe and Japan experienced a decline in the amount of wealth held in 2011.

Global wealth reached US$122.8 trillion last year, and BCG predicts it will grow to $151.2 trillion by 2016

melissat@sph.com.sg

(02-06-2012, 06:18 AM)Musicwhiz Wrote: Yet another ridiculous statistic! Does it include the value of your live-in property??

Quote:The Straits Times
Jun 2, 2012
Invest
17% of Singapore households are millionaires

By Melissa Tan

SINGAPORE leads the world in terms of the proportion of households classed as millionaires after the ranks of the wealthy swelled again last year.

A new study has found that the number of households with investable assets of US$1 million (S$1.26 million) or more rose 14 per cent to 188,000 last year. That means 17.1 per cent of households - or one in six - are millionaires.

The findings come from management consultancy Boston Consulting Group (BCG) in its Global Wealth Report 2012, which does not include property and other non-financial assets.

In 2010, 165,000 households were classed as millionaires.

The latest jump comes even though the economy grew only 4.9 per cent last year, following a 14.8 per cent surge in 2010.

BCG said the 17.1 per cent figure was the 'highest density' of millionaire households across all the 63 countries it surveyed.

Singapore came in 11th in terms of the absolute number of millionaire households.

That figure was definitely boosted by the appreciation of the Singapore dollar over the past few years, while wealth was generated by the strong growth in the property market, said Mr Warren Lim, chief executive of Finexis Advisory.

He noted that households could have also made money last year if they caught the right timing in the stock market.

Those who bought property in 2005 and 2006 and sold them recently would have seen solid gains, he said.

He added that his financial advisory firm has seen a rise of about 20 per cent in the number of wealthy clients coming to his firm for advice in the past year.

Singapore was slightly lower down the ladder when it came to ultra-high net worth households, which BCG defined as those holding over US$100 million in wealth.

It had 108,000 of these ultra-rich households last year. This is roughly equivalent to 10 out of every 100,000 households, according to BCG.

While Singapore was in 26th position when ranked by absolute numbers, it was still No. 2 in terms of the density of such households.

The Republic was trumped narrowly by Switzerland, where 11 out of every 100,000 households were considered ultra- high net worth last year.

'Overall, global growth in private wealth is clearly being driven by rapidly developing economies in the 'new world', not by the 'old world' of traditional, mature ones,' BCG wrote in its report.

The Asia-Pacific region grew richer at a faster rate than most other regions last year, due more to solid economic growth than to equity market gains.

Private financial wealth in Asia excluding Japan expanded 10.7 per cent last year to about US$23.7 trillion. The region is expected to hold US$40.1 trillion in wealth by 2016.

In contrast, developed economies like the US, Europe and Japan experienced a decline in the amount of wealth held in 2011.

Global wealth reached US$122.8 trillion last year, and BCG predicts it will grow to $151.2 trillion by 2016

melissat@sph.com.sg

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Also found the BCG report.
See Pg 9 under NOTES 1

For those like me, who felt poor after reading the article...note it measures household wealth, not individual wealth.

Wonder if it includes cpf?

The survey likely bias and makes too many assumption.

1. Increasing housing price, many working adults are staying with their parents longer.
2. Small size of the city state will also reduce the need for children to move out to work.
3. Fewer children may also mean tendency for them to stay together with their parents.
4. Another factor is Singaporean are marrying later.
5. Proactive lengthening of retirement age means Parents are working longer
6. Both parents are working are another key factor
7. Smaller household expense due to fewer children in recent decade.

Singapore has all the "STRESSES". And most are unwanted.
The combine will significantly increase household income. A more meaningful average will be on working adults on each age segment.


Cory

(02-06-2012, 06:18 AM)Musicwhiz Wrote: A new study has found that the number of households with investable assets of US$1 million (S$1.26 million) or more rose 14 per cent to 188,000 last year. That means 17.1 per cent of households - or one in six - are millionaires.

Singapore was slightly lower down the ladder when it came to ultra-high net worth households, which BCG defined as those holding over US$100 million in wealth.

It had 108,000 of these ultra-rich households last year. This is roughly equivalent to 10 out of every 100,000 households, according to BCG.

Is there something wrong with the SPH report or did I misinterpret it?

188,000 households are millionaires = 1 in 6 household

108,000 are ultra-rich household with more than US$100 million = 10 out of every 100,000 household

I don't believe that we have 108,000 ultra-rich household when our population is just 5 million

The most amazing thing from the BCG report is not the 118,000 millionaire households but rather,


Singapore was slightly lower down the ladder when it came to ultra-high net worth households, which BCG defined as those holding over US$100 million in wealth.

It had 108,000 of these ultra-rich households last year.


So, even as we try to add up all our 'peanuts' by squeezing in as many working members as we can into our household, try to sneak in other 'assets' such as CPF, Properties, Gold Collection, Wine, Stamps,...maybe even car, there're actually 100,000 households out there who have >100x ie. US$100M of what many are trying so hard to achieve!

A new mountain just appeared for us to try to climb to the peak within our life time...

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(02-06-2012, 09:32 AM)shanrui_91 Wrote:

(02-06-2012, 06:18 AM)Musicwhiz Wrote: A new study has found that the number of households with investable assets of US$1 million (S$1.26 million) or more rose 14 per cent to 188,000 last year. That means 17.1 per cent of households - or one in six - are millionaires.

Singapore was slightly lower down the ladder when it came to ultra-high net worth households, which BCG defined as those holding over US$100 million in wealth.

It had 108,000 of these ultra-rich households last year. This is roughly equivalent to 10 out of every 100,000 households, according to BCG.

Is there something wrong with the SPH report or did I misinterpret it?

188,000 households are millionaires = 1 in 6 household

108,000 are ultra-rich household with more than US$100 million = 10 out of every 100,000 household

I don't believe that we have 108,000 ultra-rich household when our population is just 5 million

I went to check the BCG report. I think SPH report is erroraneous. It should be ~108 households.

(02-06-2012, 09:37 AM)KopiKat Wrote: The most amazing thing from the BCG report is not the 118,000 millionaire households but rather,


Singapore was slightly lower down the ladder when it came to ultra-high net worth households, which BCG defined as those holding over US$100 million in wealth.

It had 108,000 of these ultra-rich households last year.


So, even as we try to add up all our 'peanuts' by squeezing in as many working members as we can into our household, try to sneak in other 'assets' such as CPF, Properties, Gold Collection, Wine, Stamps,...maybe even car, there're actually 100,000 households out there who have >100x ie. US$100M of what many are trying so hard to achieve!

A new mountain just appeared for us to try to climb to the peak within our life time...

---

(02-06-2012, 09:32 AM)shanrui_91 Wrote:

(02-06-2012, 06:18 AM)Musicwhiz Wrote: A new study has found that the number of households with investable assets of US$1 million (S$1.26 million) or more rose 14 per cent to 188,000 last year. That means 17.1 per cent of households - or one in six - are millionaires.

Singapore was slightly lower down the ladder when it came to ultra-high net worth households, which BCG defined as those holding over US$100 million in wealth.

It had 108,000 of these ultra-rich households last year. This is roughly equivalent to 10 out of every 100,000 households, according to BCG.

Is there something wrong with the SPH report or did I misinterpret it?

188,000 households are millionaires = 1 in 6 household

108,000 are ultra-rich household with more than US$100 million = 10 out of every 100,000 household

I don't believe that we have 108,000 ultra-rich household when our population is just 5 million

I went to check the BCG report. I think SPH report is erroraneous. It should be ~108 households.

"188,000 households are millionaires = 1 in 6 household"
Unquote:
Yes! Sell your HDB abode and live on the street. Then it may be true.

(02-06-2012, 09:32 AM)shanrui_91 Wrote: Is there something wrong with the SPH report or did I misinterpret it?

188,000 households are millionaires = 1 in 6 household

108,000 are ultra-rich household with more than US$100 million = 10 out of every 100,000 household

I don't believe that we have 108,000 ultra-rich household when our population is just 5 million

(02-06-2012, 09:37 AM)KopiKat Wrote: I went to check the BCG report. I think SPH report is erroraneous. It should be ~108 households.

I double verified KopiKat comment. It seem that the SPH report is flaw in the number of UHNW households, it should be slightly more than 100, instead of the reported 108,000.

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(02-06-2012, 11:48 AM)Temperament Wrote: "188,000 households are millionaires = 1 in 6 household"

Yes! Sell your HDB abode and live on the street. Then it may be true.

First of all, the reported figure does not include property and other non-financial assets as already highlighted by Kopikat

"The findings come from management consultancy Boston Consulting Group (BCG) in its Global Wealth Report 2012, which does not include property and other non-financial assets."

I assume the wealth include the CPF.

It should not come as surprise, with the household size in 2010 is 3.5 persons. A millionaire household means US$286k investable assets each person, which is ~S$370k (assume 1US$ = S$1.3) per person. IMO, It is a reasonable sum in Singapore context today for a middle class family.

It is not difficult for a working adults of 20 years to accumulate S$150k (in CPF special + medisave), more if he/she had not depleted the normal account for property.

The remaining is S$170k per person, both in personal saving and investment. I believe Musicwhiz already have that amount to qualify.

Being at the Top in household income is a Very BAD news for us. This indicate we cannot afford to leave our parent household to get a property for ourselves, not getting married, later retirement and more people working within the household.

with such abundant wealth in singapore, i find it hard that typical stock price will tank deeply