Financial Services Industry Creating Millionaires in Singapore

03 October 2013

The number of millionaires in Singapore stands at one in 30, and this number will swell by 2018 as one in 20 people in Singapore are expected to turn millionaires. This staggering surge in the millionaire population is attributed to the growth of the financial services sector and the increased migration of wealthy Asian families to the bustling cosmopolitan island.

WealthInsight’s latest report on Singapore ‘The Rise of the Lion City’ puts this region only behind Monaco as places with highest density of millionaires, and expects the number of Singapore millionaires to increase by 59% between 2012 and 2017.

According to Oliver Williams, analyst at this global wealth consultancy, uncertainty in some Asian markets is driving the UHNW Asian families to Singapore, resulting in an increased number of wealthy families in the region.  Majority of the boom in the number of millionaires in Singapore however comes from the continued strength of the financial services industry having already created 22% multimillionaires and 35% millionaires since last year – an incredible 163% increase from 2008.

WealthInsight also predicts Singapore to tip Switzerland before 2020 as the world’s largest offshore financial center. This comes after the report put the total worth of assets under management in Singapore at USD 1.29 trillion – with millionaires in Singapore holding 40% of their foreign assets in the Asia-Pacific region.

In 2012, the 183,000 millionaires in Singapore collectively held USD 857 billion (85.7% of total individual wealth held in Singapore). These millionaires also held USD 302 billion (35.2%) of their wealth outside their home country – a figure well above the 20% to 30% global average.  The report predicted their foreign assets holdings to reach USD 462 billion by 2017. These findings lend further support to the reviving and strengthening measures taken by the financial services industry in Singapore after the 2008 slowdown.

Other facts about Singapore:

  • Nearly 83% of the multimillionaires in Singapore are men
  • 47% of Singapore millionaires earned their wealth; 35% are entrepreneurs
  • By 2015 the number of International students in the Singapore will swell up to 150,000

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