Homepage
PR Newswire
24-07-2011, 07:57 AM
I seriously question the rationale for writing and publishing such articles! Is it just to show how the super affluent flaunt their wealth, while many others across the world struggle with poverty? I feel that Singapore has too many of such articles and thus breeds materialism and conspicuous consumption! 
Jul 24, 2011
Plastic Fantastic
Number of credit card holders who spend an average of $100,000 or more a month rose to 102 last year
By Magdalen Ng
All it takes for some to purchase a million-dollar artwork or a Ferrari is a little piece of plastic.
With the growth of the super-affluent in the Asia-Pacific region, credit card issuers have been pulling out all the stops to attract the highest spenders.
And they are succeeding.
According to the Credit Bureau of Singapore, the number of credit card holders who spend an average of $100,000 or more a month has increased from 70 in 2009 to 102 last year, a jump of 45.7 per cent. There were 56 in 2008.
The jump has occurred during a period when high net-worth wealth grew by 35 per cent in the Asia-Pacific region, higher than the 22 per cent growth of this segment globally, according to the Citi Private Bank-Knight Frank Wealth Report 2011.
Also, credit card rules were relaxed recently to allow card issuers to do away with credit limits altogether for their best clients.
American Express, Citibank, DBS Bank, OCBC and United Overseas Bank all have such cards catering to the super-wealthy.
Citibank's Ultima card is by invitation, and is available only to those with assets under management of at least $5 million. There is a 'sizeable portion' of Ultima card members who spend six figures or more on their cards each month, said the bank.
Mr Han Kwee Juan, managing director and head of credit payment products at Citibank Singapore, said its lifestyle managers, who provide services similar to those of private bankers, work closely with the customers to ensure that all their needs are met.
He cited the example of how Citibank once flew in a chef and his entire kitchen crew from London for a customer, who was not free to fly there.
Similarly, OCBC has provided services that enable customers to cut a two-year wait list to buy limited-edition Hermes Kelly and Birkin bags, and secure dinner reservations at coveted Michelin-starred restaurants like The Fat Duck in England.
Commenting on the increase in big spenders, Ms Meranda Chan, Visa's country manager for Singapore and Brunei, said the big-ticket items people are spending their money on fall mainly under the retail category, such as art masterpieces and down payments for luxury cars, as well as travel.
Celebrity photographer and watch expert Dominic Khoo, 33, has used his credit card to pay for some of the luxury watches in his collection, which include names like Gerald Genta.
He said: 'If you carry cash to purchase these items, you would be lugging sacks of cash, or maybe suitcases.
'Also, the reward points are really hard to resist. You get quite a lot of miles when you change those for frequent flier miles.'
Lamborghini Singapore managing director Melvin Goh said he has seen an increase in the number of such customers buying the supercar, which costs approximately $900,000 to $1.6 million.
Similarly, Ms Stephane Le Pelletier, Asia-Pacific director of Opera Gallery, said: 'The largest single transaction we ever processed via credit card is $1 million. It was for a masterpiece by Marc Chagall.'
The gallery has also seen an increase in collectors choosing to pay via credit.
'We think that one of the main reasons is the rise in associated promotions and benefits. The frequent flier mile award programmes, for example, are a big draw for many of our clients,' she added.
Citibank allows customers to change their reward points for just about anything. A card member, for example, recently asked the bank if he could pay for a luxury watch with his points. Not a problem, said the bank, which settled the cost with the watch dealer.
However, for some customers, points are not everything.
Housewife H. Tan has bought diamonds and furniture, and made the down payment for her Mercedes-Benz with her credit card. But she said: 'Sometimes, if we know the jewellers and they give a better price, then I'll just pay by cash.'
songyuan@sph.com.sg
Jul 24, 2011
Plastic Fantastic
Number of credit card holders who spend an average of $100,000 or more a month rose to 102 last year
By Magdalen Ng
All it takes for some to purchase a million-dollar artwork or a Ferrari is a little piece of plastic.
With the growth of the super-affluent in the Asia-Pacific region, credit card issuers have been pulling out all the stops to attract the highest spenders.
And they are succeeding.
According to the Credit Bureau of Singapore, the number of credit card holders who spend an average of $100,000 or more a month has increased from 70 in 2009 to 102 last year, a jump of 45.7 per cent. There were 56 in 2008.
The jump has occurred during a period when high net-worth wealth grew by 35 per cent in the Asia-Pacific region, higher than the 22 per cent growth of this segment globally, according to the Citi Private Bank-Knight Frank Wealth Report 2011.
Also, credit card rules were relaxed recently to allow card issuers to do away with credit limits altogether for their best clients.
American Express, Citibank, DBS Bank, OCBC and United Overseas Bank all have such cards catering to the super-wealthy.
Citibank's Ultima card is by invitation, and is available only to those with assets under management of at least $5 million. There is a 'sizeable portion' of Ultima card members who spend six figures or more on their cards each month, said the bank.
Mr Han Kwee Juan, managing director and head of credit payment products at Citibank Singapore, said its lifestyle managers, who provide services similar to those of private bankers, work closely with the customers to ensure that all their needs are met.
He cited the example of how Citibank once flew in a chef and his entire kitchen crew from London for a customer, who was not free to fly there.
Similarly, OCBC has provided services that enable customers to cut a two-year wait list to buy limited-edition Hermes Kelly and Birkin bags, and secure dinner reservations at coveted Michelin-starred restaurants like The Fat Duck in England.
Commenting on the increase in big spenders, Ms Meranda Chan, Visa's country manager for Singapore and Brunei, said the big-ticket items people are spending their money on fall mainly under the retail category, such as art masterpieces and down payments for luxury cars, as well as travel.
Celebrity photographer and watch expert Dominic Khoo, 33, has used his credit card to pay for some of the luxury watches in his collection, which include names like Gerald Genta.
He said: 'If you carry cash to purchase these items, you would be lugging sacks of cash, or maybe suitcases.
'Also, the reward points are really hard to resist. You get quite a lot of miles when you change those for frequent flier miles.'
Lamborghini Singapore managing director Melvin Goh said he has seen an increase in the number of such customers buying the supercar, which costs approximately $900,000 to $1.6 million.
Similarly, Ms Stephane Le Pelletier, Asia-Pacific director of Opera Gallery, said: 'The largest single transaction we ever processed via credit card is $1 million. It was for a masterpiece by Marc Chagall.'
The gallery has also seen an increase in collectors choosing to pay via credit.
'We think that one of the main reasons is the rise in associated promotions and benefits. The frequent flier mile award programmes, for example, are a big draw for many of our clients,' she added.
Citibank allows customers to change their reward points for just about anything. A card member, for example, recently asked the bank if he could pay for a luxury watch with his points. Not a problem, said the bank, which settled the cost with the watch dealer.
However, for some customers, points are not everything.
Housewife H. Tan has bought diamonds and furniture, and made the down payment for her Mercedes-Benz with her credit card. But she said: 'Sometimes, if we know the jewellers and they give a better price, then I'll just pay by cash.'
songyuan@sph.com.sg
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
