Singapore is home to some of the wealthiest people in the world. (Photo credit: Arian Zwegers)
[Article first appeared on Forbes Magazine September Issue]
It takes most Singaporeans less than 10 years to become a millionaire. That is the fastest rate anywhere in the world, says a wealth report released by the Barclays Bank on July 5, 2013 in Singapore.
The Bank surveyed 2000 high net worth individuals globally in early 2013 to ascertain how entrepreneurs, business leaders and investors make, spend and share wealth. The respondents were individuals with net worth of more than $1.5 million. A fifth of the 500 interviewed were based in Asia.
While the popular belief is that the wealth of millionaires in Singapore has come from the dramatic rise in property prices over the years, that is only partly true. According to the survey, 72% of the wealth was made from personal investments, followed by 58% from property and 55% from savings through earning and bonuses. (Respondents could choose multiple answers).
The financial crisis too, despite its seismic economic, political and social fallout, the world over, enabled close to 50% of the rich Singaporeans to increase their wallet size. This was mainly on the back of a buoyant Straits Times Index (STI) that doubled in value from 2008 to 2013. Regional bourses in Thailand, Indonesia and Malaysia showed a similar vibrancy. A quarter of Singaporeans interviewed said their wealth had jumped five-fold or more over their lifetime.
However, considering the highly -integrated nature of the island state’s economy, Singapore’s rich also experienced the highest fluctuation in their fortunes; more any other country. Almost 70% said their wealth was volatile and moved “a great deal” overtime.
When it comes to spending, despite headline grabs of $26,000 cocktails, Ferrari-speckled roads in Singapore, the survey reports that Singaporeans use 61% of their money for saving and investing, just a notch behind their Chinese brethren in Hong Kong at 66%, and ahead of mainland Chinese who would put 58% of their money to work in banks or the stock market. The second most popular use of money among Singaporeans was on travel and social activities (16%). Only 7 per cent spent on cars, jewelry or collectibles. This is in sharp contract to the new rich in India where 17% are spending on tangibles like cars, homes or jewels.
And what is the psyche of a typical Singaporean on sharing wealth? He would rather gain personal fulfillment and a sense of purpose in life. While 13% Singaporeans prefer to pass on their assets in inheritance, more than 50% want to give their wealth to charity. And they prefer to do it in their lifetime.
*Article first appeared on http://www.forbes.com/sites/neerjajetley/2013/07/08/singaporeans-are-the...