S'pore will have more millionaires per population v US, China by 2030: HSBC

[DOBIEMKZ]

S'pore will have more millionaires per population v US, China by 2030: HSBC

https://www.straitstimes.com/business/economy/singapore-will-have-more-millionaires-per-population-vs-us-and-china-by-2030-hsbc

Ovais Subhani Senior Correspondent, PUBLISHED 17 AUG 2022, 1:33 PM SGT

The study looks at resident population that comprises citizens and permanent residents. ST PHOTO: DESMOND WEE

SINGAPORE - In the next eight years, the number of millionaires in Singapore as a share of its population will be more than that of the United States, China or any other economy in the Asia-Pacific region, said HSBC in a report.

The Republic, where 7.5 per cent of the adult population had wealth of at least US$1 million (S$1.38 million) in 2021, would see the share of millionaires rise to 9.8 per cent in 2025 and then jump to 13.4 per cent in 2030.

The study looks at resident population that comprises citizens and permanent residents.

To measure the wealth of the millionaires, HSBC said it used their cash in banks and investment in securities such as stocks and bonds. It also took into account real estate holdings, which include owner-occupied properties, after deducting any outstanding mortgage amounts. 

The bank said that in Asia, Singapore is already second to only Australia, whose share of millionaires per population stood at 8 per cent in 2021.

By 2030, Australia will drop to second place with 12.5 per cent of the nation holding cash and assets of at least a million US dollars.

By that year, 11.1 per cent of Hong Kong's population will be millionaires, 9 per cent for the US, 7.2 per cent for Japan and 4.4 per cent for China.

Singapore's share of residents with wealth of at least US$250,000 will rise to 67 per cent by 2030, second to Australia's 70.8 per cent, said the report titled The Rise Of Asian Wealth.

HSBC said the growth of millionaires in Asia will continue through 2035 with their projected share reaching 17 per cent for Singapore, ahead of 15.1 per cent for Australia and 14.6 per cent for Hong Kong.

However, in absolute terms, the countries with large populations will continue to lead the league of millionaires in the region.

The number of adults with wealth of at least US$1 million in China stood at 17.1 million in 2021. HSBC said that number will rise to 50.4 million in 2030. 

The number of Singapore millionaires will rise over the same period from 400,000 to 700,000.

Mr Frederic Neumann, HSBC's chief Asia economist, said the deepening pool of local savings across the region is providing a measure of resilience against the vagaries of global financial markets and hardship from rising inflation and slowing growth.

"An account of Asia's growing wealth also shines a light on the societal resources that are ultimately available to lift millions more out of poverty," he said in the report.

"After all, the region is hardly short of capital, even if this is unevenly distributed, both between and within economies."

He noted that financial wealth in Asia had started to exceed that in the US after 2008 with the start of the global financial crisis, the worst economic disaster to hit the US since the Great Depression. Asian financial wealth reached just shy of US$140 trillion in 2021, well above US$120 trillion in the US.

Japan accounted for over half of the wealth held in the region in the years following the global financial crisis. But by 2021, China's share climbed to 46 per cent while Japan's has fallen to a quarter.

However, excluding Japan, Asia's financial wealth is still lower than that of the US at around US$100 trillion.

But "given current trends in per capita income growth, wealth in Asia ex-Japan could surpass that in the US by 2025", said Mr Neumann.

The number of millionaires in Asia, excluding Japan, is projected to jump from roughly 30 million currently to over 76 million by the end of the decade, he added.

=================================================

13% of S'pore population to become millionaires by 2030, highest proportion among Asia-Pacific economies: HSBC report

https://www.todayonline.com/singapore/13-spore-population-become-millionaires-2030-highest-proportion-among-asia-pacific-economies-hsbc-report-1971636

BY NAVENE ELANGOVAN, Published August 17, 2022 (Updated August 18, 2022)

Singapore is expected to see its share of millionaires among its residents grow from 7.5 per cent in 2021 to 13.4 per cent by the end of the decade.

By 2030, more than 13 per cent of adults in Singapore will be millionaires, said an HSBC report

This is the highest proportion among 15 Asia-Pacific economies

In absolute terms, the number of millionaires in Singapore will rise to 700,000 in 2030, up from 400,000 currently

SINGAPORE — In eight years' time, more than 13 per cent of adults in Singapore will be worth more than US$1 million (S$1.38 million), a proportion higher than the United States, China and 12 other Asia-Pacific economies, said an HSBC report.

In Singapore, Australia, Hong Kong and Taiwan, there are likely to be more millionaires on a relative basis than in the US, with South Korea and New Zealand coming close, the report also said.

Comparatively, the US is expected to have 8.8 per cent of its adult population as millionaires by 2030 while the figure for China is expected to be 4.4 per cent.

Singapore is expected to see its share of millionaires among its residents, which comprise permanent residents and citizens, grow from 7.5 per cent in 2021 to 9.8 per cent in 2025 and up to 13.4 per cent by the end of the decade.

In absolute terms, this means that the number of millionaires in Singapore will rise to 700,000 in 2030, up from 400,000 currently.

The report by HSBC, titled "The Rise of Asian Wealth", looks at the rise of wealth in Asia. It was released on Tuesday (Aug 16).

Among other things, the report examines the projected number of residents that will reach certain wealth brackets in the coming years.

It does so based on the residents' bank deposits, investments in bonds and equities, assets held by pension funds or insurance companies, as well as their real estate holdings after deducting any outstanding mortgage amounts. 

It compares 15 economies in the region, including Singapore, China, Japan, Malaysia and Taiwan. 

Mr Frederic Neumann, HSBC’s chief economist for Asia, said that although the region is going through economic instability, it is nevertheless worth taking stock of Asia’s rising wealth at this juncture.

This is because the deepening pool of local savings provides “a measure of resilience against the vagaries of global financial markets”. 

“An account of Asia’s growing wealth also shines a light on the societal resources that are ultimately available to lift millions more out of poverty,” he added in the report.

S’PORE HAS SECOND HIGHEST PROPORTION OF MILLIONAIRES IN REGION

The report said that currently, Singapore has the second-highest (7.5 per cent) number of millionaire adults based on the percentage share of its population, just after Australia (8 per cent) and ahead of Taiwan (5.9 per cent).

By 2030, Singapore will take the top spot at 13.4 per cent, followed by Australia (12.5 per cent) and Hong Kong (11.1 per cent).

By the end of 2030, only around 4 per cent of adults in mainland China and less than 1 per cent of adults in India are likely to be millionaires, noted the report.

However, in absolute numbers, China will continue to have the highest number of millionaires, rising from about 17 million currently to 50 million by the end of the decade. This figure is projected to rise to nearly 80 million by 2035.

The number of millionaires in India is also set to hit 6.6 million by 2030, exceeding the whole of the Association of Southeast Asian Nations (Asean) region, said the report.

However, it noted that the large number of millionaires in some of these economies can be explained due to the large sizes of their population, on top of their wealth distribution and level of economic development.

INDIVIDUALS WITH AT LEAST US$250,000

At the slightly lower end of the income bracket, Singapore is also expected to see the proportion of its residents having at least US$250,000 of wealth standing at 67 per cent by 2030, up by about 10 percentage points from 2021.

In terms of the percentage share of the population, this will make Singapore the second-highest city in the region with individuals of this net worth, just after Australia at 70.8 per cent.

Both economies also occupy the same top two spots in this category in 2021.

In China, the number of adults with a net wealth of at least US$250,000 is expected to double by 2030 to around 350 million, while the figure in India could triple to 57 million.

Region-wide, the number of millionaires is projected to jump from about 30 million currently to more than 76 million by the end of the decade.

The report said that economies that are growing more rapidly tend to accumulate wealth faster.

For example, Vietnam, the Philippines and India are expected to see the number of adults holding wealth of at least US$250,000 more than double by 2030, with Indonesia and Malaysia “not far behind”.

 

Edited August 18, 2022 by DOBIEMKZ

[Vratenza]

Today's milion dollar is not worth the same as a million dollar in 1990.

[DOBIEMKZ]

[Estrangable]

that is not even a good news to ordinary citizens... that means everything is jacked up..zero trickle down effects. The only shit that gets trickled down is increased pricing. 

we should learn from emperor xi - common prosperity. 

[Beregond]

we will have even more millionaires when all our HDB is worth at least 1 m 😂

[1fast1]

Even now, millionaire = just middle-class.

[Playtime]

12 minutes ago, Beregond said:

we will have even more millionaires when all our HDB is worth at least 1 m 😂

i never understood why people so happy when they hear hdb hit 1 million.

for me... it means our children are royally fxxked.... how to be cheapest and accept lower wages to compete with FT.

[Estrangable]

blame it on Marlboro Tan and his policies... he was the one that started the asset inflation bubble 

[Victor68]

How do we classify millionaire? Cash, Asset? And $1 million or $100 million? 

[Fitvip]

40 minutes ago, Estrangable said:

that is not even a good news to ordinary citizens... that means everything is jacked up..zero trickle down effects. The only shit that gets trickled down is increased pricing. 

we should learn from emperor xi - common prosperity. 

Dan Gu Gu.😪

 How many millionaires is none of our concern, but, how many take up cardboard picking as exercise is.😪 

Edited August 18, 2022 by Fitvip

[Beregond]

12 minutes ago, Victor68 said:

How do we classify millionaire? Cash, Asset? And $1 million or $100 million? 

Cash + asset ba.

if base on cash only , possible meh😂

[1fast1]

18 minutes ago, Estrangable said:

blame it on Marlboro Tan and his policies... he was the one that started the asset inflation bubble 

Marlboro Tan has long f**ked off. No point blaming him. A good gahmen will make new policies that correct existing issues and rebalance equity. They don't because they won't or can't. Blame the current gahmen. 

[Victor68]

2 minutes ago, Beregond said:

Cash + asset ba.

if base on cash only , possible meh😂

With HDB easily going above $700k, a car $150k and some money in CPF. $1m is the poor man here. I would only consider hard cash of $10m per person or liquid assets of equivalent then can consider baby millionaire lah.

[Victor68]

40 minutes ago, Playtime said:

i never understood why people so happy when they hear hdb hit 1 million.

for me... it means our children are royally fxxked.... how to be cheapest and accept lower wages to compete with FT.

It simply means you are locking up all your money by paying a super high rental for that roof over your head. You need to slave yourself, otherwise you won't even have a roof over your head. Yeah FT is cheaper because they can go back to their home one day. 

[inlinesix]

18 minutes ago, Victor68 said:

With HDB easily going above $700k, a car $150k and some money in CPF. $1m is the poor man here. I would only consider hard cash of $10m per person or liquid assets of equivalent then can consider baby millionaire lah.

HDB is joint assets. Need to work harder 

[Tianmo]

If I die tomorrow, my wife become instant millionaire within 2 months.  So by 2030 I can make her one of the 13%. 

Not very difficult leh.

 

[Vratenza]

in some other definition of millionaire, the roof over your head is not counted as part of your financial asset even if it is fully paid for.

[Jamesc]

Wah inflation so bad we all millionaires?