S'pore Has 67,000 Millionaires

Source : The Straits Times, Oct 18, 2007

They are mostly businessmen in the 41 to 55 age group, with their wealth mainly in real estate.

THE typical millionaire in Singapore - and there are 67,000 of them - is a businessman aged between 41 and 55 with the bulk of his wealth in real estate.

The number of millionaires here rose by 21.1 per cent in 2006, making Singapore the fastest-growing population of the rich in the region, according to the second annual Asia-Pacific wealth report released by Merrill Lynch and research firm Capgemini on Thursday.

To join the super-rich club, these individuals must have US$1 million in assets, not including their homes. Other investments in real estate are included.

'Robust economic growth and strong financial markets, along with astute government fiscal policies has continued to contribute to Singapore's growth rate,' said Rahul Malhotra, Merrill Lynch's head of global wealth management for Asia Pacific.

'Real estate and equities investments have also continued to be the twin drivers behind this growth.'

The report found that rich Indonesians living in Singapore comprised a significant share of the local millionaire population and wealth.

There are also 928 ultra-rich people here, with net wealth of at least US$30 million each.

Singapore's millionaires held a combined US$323.7 billion in financial assets at the end of last year, up 24.5 per cent from 2005.

Of this, some 36 per cent was in real estate, with 26 per cent in equities, 18 per cent in cash and deposits, 10 per cent in fixed income investments and 10 per cent in alternative investments.

And 46 per cent of the millionaires are between 41 and 55 years, with 32 per cent between 56 and 70, and 15 per cent between 31and 40.

Over a-third of these millionaires derived their wealth from business, with the next two sources of wealth being inheritance (22 per cent) and income (18 per cent).

The report also found out that 78 per cent of them are men.

Regionally, the number of millionaires grew 8.6 per cent in 2006 to 2.6 million, making up 27 per cent of the world's millionaires.

India and Indonesia followed Singapore as the next two fastest-growing millionaire populations, with 20.5 per cent and 16 per cent increases in the numbers of millionaires respectively.

The combined wealth of the region's millionaires swelled 10.5 per cent to US$8.4 trillion, up by from 2005, with Japan accounting for 43 per cent and China about a fifth.

The report also said the region's class of super-rich individuals whose assets exceed US$30 million grew by 12.2 per cent to 17,500, exceeding the global rate of 11.3 per cent.

'It is really a story of growth, growth and growth, all across,' said Mr Malhotra.

Wealth creation was driven by the region's rapidly developing economies, among the fastest-growing in the world - led by China and India.

Handsome returns from regional stock markets also boosted wealth, as benchmark stock indices in China, Indonesia, India and Hong Kong outperformed most mature capital markets with returns over 30 per cent, the report said.

Savings rates, as a percentage of GDP, were higher in Asia-Pacific than most developed markets, with rates greater than 40 per cent in China, Singapore and Hong Kong.