S'pore
leads world in new millionaires
There are 66,660 of them in 2006, up
21.2%, with 11,660 newly minted millionaires joining the club,
according to the annual World Wealth Report by Merrill Lynch and
Capgemini released yesterday. They account for about 1.5 per cent
of the population, which means three out of every 200 people here
are millionaires.
June 29,
2007
AsiaOne
Tiny Singapore saw the fastest
increase globally in the number of high-net-worth individuals. The
number of people with more than US$1 million in financial assets
excluding their home rose 21.2 per cent to 66,660.
Singapore's pace was closely followed by India, where the number of
millionaires rose 20.5 percent to 100,015, and Indonesia where
growth was 16 percent to 20,000, according to the latest Merrill
Lynch and Capgemini world wealth annual report.
"Singapore is a little boat of 4.5 million people that floats very
nicely when the global economy is doing well," Mark Matthews,
Merrill Lynch's chief Asia strategist told a news conference in
Singapore yesterday.
"As you can see from these numbers, Singapore's growth has
accelerated -- not only economic growth, but also savings."
About 11,660 newly minted millionaires, defined as those with
financial asswets of over US$1 million (S$1.54 million), joined the
ranks here last year, the survey of the well-to-do- in 71 countries
found.
This is the second time in three years that Singapore has posted
the highest growth globally, which comes amid a booming stock
market, strong economy and a property boom.
Noted Mr Matthews: "We think Singapore is in the midst of an
impressive transition. It is to South-east Asia what Miami was to
Latin America, a place where the wealthy come to bank their money,
educate their children and get culture.
"Now we think Singapore is metamorphosing into a Zurich and Monaco
not just for South-east Asia but for all of Asia.
"It is become a very important financial hub and it will become a
leisure hub as well. for that reason, we're very bullish on
Singapore."
The 66,660 millionaires account for about 1.5 per cent of the
population, which means three out of every 200 people here are
millionaires.
To qualify, these well-heeled types must have a million bucks in
assets not counting that widely used barometer of wealth - the
home. Other investments in real estates are included.
The survey shows that the number of millionaires in Asia jumped
last year, pushing their combined wealth up 10.5 per cent to $8.4
trillion, but growth is expected to slow in line with a cooling
global economy.
Strong economic expansion, led by China and India -- the world's
two fastest growing major economies -- robust foreign direct
investments and growing confidence in the region have swelled the
ranks of Asia's rich, the annual survey shows.
"In the Asia Pacific, the high net-worth population accelerated
from 7.3 percent in 2005 to 8.6 percent in 2006 (to 2.6 million),"
Victor Tan, Merrill's Asia Pacific chief equity strategist, told a
media briefing in Hong Kong.
Soaring wealth, high savings and ample potential have made Asia the
world's hottest market for international and private banks seeking
to cater to the rich.
Standard Chartered Plc. , for example, launched its private banking
business in India this month, looking for a slice of the action in
Asia's second-fastest growing economy that is dominated by Merrill
Lynch and Citigroup .
Hong Kong's wealthy grew 12.2 percent to 86,618, ranking the city
as the 10th fastest in the world.
Willie Chan, another Merrill equity strategist, said the city's
relatively slower growth rate was due to a high-base effect as the
number of wealthy people had risen sharply in 2005.
China, with an economy growing at 10.5 percent in 2006, saw a 7.8
percent increase in wealthy individuals to 345,000.
By comparison, disposable per capita income of urban Chinese was
11,759 yuan in 2006 or about $1,545, according to official data
from state news agency Xinhua.
Further details of how Asian countries ranked by wealth will be
revealed in an Asia Pacific survey due in October.
The report also showed that wealthy investors had shifted more
money into property at the expense of other investments, lured by
high returns from commercial real estate investments and real
estate investment trusts.
The trend was most dramatic in the Asia Pacific, where 29 percent
of assets from wealthy individuals was held in real estate, up from
16 percent a year ago, the report showed.
"Looking forward to year-end 2008, high-net-worth individuals are
likely to shift their allocation back towards alternative
investments after realising profits in their real estate
investments," Tan said.
But rising interest rates globally may sap the strong cash flows
that have helped to drive recent growth, and economic growth in
Asia and Latin America was expected to ease as global demand
slowed, the report said.
The biggest risk that could hurt global economic expansion, and in
turn wealth expansion, would be if the Chinese economy unexpectedly
slowed down, Matthews said.
But so far there was little likelihood of such a slowdown happening
in the near future, he added.
Global assets held by wealthy investors rose 11.4 percent to $37.2
trillion in 2006, but that is set to slow to a 6.8 percent annual
rate between 2006 and 2011 to US$51.6 trillion.
In Asia Pacific, the growth rate is seen slowing to 8.5 percent per
annum.
Reference:
Asia1.com
