17% of Singapore households are millionaires

[kazukirai]

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.

I would think that a HH size of 3.5 usually means 2 adults and 1-2 kids. After all, adults with 20 years working experience means they probably have 1-2 kids age 20 or younger.

So in this case, shouldn't the investable assets be more like US$500k each?

[CityFarmer]

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.

I would think that a HH size of 3.5 usually means 2 adults and 1-2 kids. After all, adults with 20 years working experience means they probably have 1-2 kids age 20 or younger.

So in this case, shouldn't the investable assets be more like US$500k each?

Since we are talking about 1 in 6 households (~17%) are millionaire household, instead of a typical (average) household. So I am referring to above average middle class household comprises of 3-4 working adults (e.g. with average working years of 20 years).

I had not managed to find direct supporting statistic nos for this type of household. But to assume 17% of overall household belong to this group, should not come as surprises to anyone.

Additional indirect supporting statistic to my view are

- For those population above 15 years old, the larger groups are 25-34 (15%), 35-44 (16%) and 45-54 (17%).
- Singles (above 15 years) are 32% of population, excluded those widowed, divorced or separated.

The above is my view on the topic. Feel free to comment further

[koh_52]

I agreed with ST newspaper comments …but as for ultra rich number I personally dun think so….not easy to have 100 million Nett Worth, meaning after less all liabilities, e.g bank loan.

A normal person after working for more than 30 yrs, logically he should have substantial savings…after less all liabilities and excluding owner stay ppty…….balance nett worth 1 million not difficult to achieve so 17% of SG HH got it there.

Main reason due to structural shift of Ageing population …Hmms so many cash rich uncles/aunties here hor, hmms meaning healthy demand for property, maybe this is 1 of the reason why S’pore ppty price still inching up whereas other places like China and HK puncture liao.

[CityFarmer]

I agreed with ST newspaper comments …but as for ultra rich number I personally dun think so….not easy to have 100 million Nett Worth, meaning after less all liabilities, e.g bank loan.

A normal person after working for more than 30 yrs, logically he should have substantial savings…after less all liabilities and excluding owner stay ppty…….balance nett worth 1 million not difficult to achieve so 17% of SG HH got it there.

Main reason due to structural shift of Ageing population …Hmms so many cash rich uncles/aunties here hor, hmms meaning healthy demand for property, maybe this is 1 of the reason why S’pore ppty price still inching up whereas other places like China and HK puncture liao.

Yes, agreed. It is much easier now to understand why COE and Properties price keep rising

[CityFarmer]

It is just happen to read some statistic number of SME and public services in Singapore. Let's look at the issue from the other perspective.

It is about 153,400 SME in Singapore in 2011.

There are 15 Ministries and more than 50 Statutory Boards in Singapore, employing 130,000 officers.

If we assume (till further confirmation by buddies )

- 50% of SME's CEO and deputy CEO are US$ millionaire i.e. 153,400
- 25% of the 130,000 officers are US$ millionaire i.e. 32,500

In total 185,900 US$ millionaire. If everyone of them is the sole bread-winner, then it is not too far from the 188,000 millionaire households reported

[camelking]

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

My office just happen to have 5 such 100m person around....
So, maybe possible to have 108,000 such people.... taking into account those rich indo,indians and chinese from overseas....why not?

[WolfT]

Singapore only have 76,000 millionaire and there are 108,000 household with 100mil?
printing error lar. 108 only lar..

[CityFarmer]

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

My office just happen to have 5 such 100m person around....
So, maybe possible to have 108,000 such people.... taking into account those rich indo,indians and chinese from overseas....why not?

Base on the data from the report, it is already confirmed that 108,000 UHNW households is flaw, it should be ~108 household.

Let's look at from the other way. The household net wealth in Singapore is S$1.09 trillion in 2009

If we have 108,000 household with 100 US$ Millions minimum each, total minimum wealth is 12.96 S$ trillion (US$ = 1.2 S$).

Sound illogical, isn't it?

[camelking]

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

My office just happen to have 5 such 100m person around....
So, maybe possible to have 108,000 such people.... taking into account those rich indo,indians and chinese from overseas....why not?

Base on the data from the report, it is already confirmed that 108,000 UHNW households is flaw, it should be ~108 household.

Let's look at from the other way. The household net wealth in Singapore is S$1.09 trillion in 2009

If we have 108,000 household with 100 US$ Millions minimum each, total minimum wealth is 12.96 S$ trillion (US$ = 1.2 S$).

Sound illogical, isn't it?

ok liao....ahahahhaahahhahahhahahahaha

[redcorolla95]

Credit Suisse Global Wealth Report Oct 2011
Investable net wealth per adult
Less than US$10,000 18%
US$10-100l 30%
> US$100k 52.4%

Mean wealth US$284k
Median wealth US$101k

MAS Financial Stability Review Nov 2011
Q3 2011 S$1.247 trillion in household net wealth, of which S$783b of property.
So if we take 1.146m households, the mean household is worth S$1.08m, if we subtract the property, that gives S$400k of liquid assets.

There are lots of rich households in Singapore.

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.

I would think that a HH size of 3.5 usually means 2 adults and 1-2 kids. After all, adults with 20 years working experience means they probably have 1-2 kids age 20 or younger.

So in this case, shouldn't the investable assets be more like US$500k each?

Since we are talking about 1 in 6 households (~17%) are millionaire household, instead of a typical (average) household. So I am referring to above average middle class household comprises of 3-4 working adults (e.g. with average working years of 20 years).

I had not managed to find direct supporting statistic nos for this type of household. But to assume 17% of overall household belong to this group, should not come as surprises to anyone.

Additional indirect supporting statistic to my view are

- For those population above 15 years old, the larger groups are 25-34 (15%), 35-44 (16%) and 45-54 (17%).
- Singles (above 15 years) are 32% of population, excluded those widowed, divorced or separated.

The above is my view on the topic. Feel free to comment further