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Singapore sees growth in UHNWIs, wealth per adult

Singapore sees growth in UHNWIs, wealth per adult

The number of ultra-high-net-worth individuals (UHNWIs) in Singapore grew at a faster rate of 15.3% to 981, and the number of millionaires in Singapore increased 2.7% to 152,000 in 2017, a new report by Credit Suisse has found.

Singapore’s household wealth grew 3.4% to reach $1.2 trillion in mid-2017, and it is projected to increase by 2.3% per year in the next five years to reach $1.3 trillion in 2022.

Average wealth was at $268,800 per adult in mid-2017, ranking ninth globally among major economies, compared to $115,560 in 2000.

The rise was mostly caused by high savings, asset price increases, and a favourable rising exchange rate from 2005 to 2012, the Swiss bank noted.

What’s more, Singapore is now ahead of Hong Kong, which was ranked ahead of Singapore in 2000. Wealth per adult in Hong Kong grew at an average annual rate of only 3.0% between 2000 and 2017, versus 5.1% for Singapore.

Financial assets make up 56% of gross household wealth in Singapore, a ratio similar to that of Switzerland. The average debt of $50,570 per adult is moderate for a high-wealth country, representing 16% of total assets.

Looking ahead, the number of millionaires in Singapore is forecast to grow 2.3% per annum to 170,000 in 2022, and UHNWIs at a similar rate to just over 1,000.

Asia Pacific trends

Findings from the report revealed that Asia Pacific in 2016 saw wealth increase by 3% to $89 trillion.

China generated the largest wealth growth in the region, with total wealth increasing by $.7 trillion to $29 trillion, representing the second largest wealth gain by country following the US.

Japan’s wealth fell 6.1% to $23.7 trillion due to currency depreciation against the dollar. In yen terms total wealth in Japan increased by a moderate 2.8%.

From 2016 to 2017, the number of millionaires globally grew by 2.3 million to reach 36 million. In the region, Australia added 202,000 millionaires to reach 1.2 million, China added 163,000 reaching two million and Taiwan added 58,000 to 381,000.

In Asia Pacific, the number of millionaires is expected to increase by 7.2% per annum to reach 11.7 million in 2022, while the UHNW segment is forecast to grow to around 52,000 at 6.8% annually.

China could see its number increase by 41% to 2.7 million to reach the third position in the millionaires’ world ranking behind the US and Japan.

India could reach 370,000 millionaires in 2022, an increase of more than 50% in the next five years.

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