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How much do millionaires know? Why migrate? Will Singapore be the big winner?

According to the Global Wealth 2024 report released by Switzerland Bank (UBS), the number of millionaires in US dollars in Singapore increased to 333,204 last year, an increase of about 0.4% from the previous year. The report also shows that the average wealth per adult in Singapore reached US$398,000, ranking eighth in the world.

Have you ever "dragged your feet"? The report shows that the average wealth of Singaporeans has grown faster, but in a median terms, it has fallen by 2%. This suggests that wealth is rising mainly in the high-income bracket.

How much do millionaires know? Why migrate? Will Singapore be the big winner?

The report said the gap between rich and poor in Singapore has widened by 22.9 per cent since 2008, with the Gini Index rising from 57 that year to 70 last year.

The bigger the Gini Index, the more volatile it is?

The Gini Coefficient is a measure of the gap between the rich and the poor, with higher scores representing greater gaps. Since the onset of the global financial crisis in 2008, the average wealth per adult in Singapore has increased by 116 per cent in Singapore dollars, or more than doubled, the report said. However, the Gini coefficient also rose to 70, which is lower than the regional average but higher than that of Hong Kong SAR and Taiwan.

How much do millionaires know? Why migrate? Will Singapore be the big winner?

Local analysts interviewed said that most Singapore families have reached a certain level of affluence, which can be called "well-off families". And those whose wealth grows faster have always been those at the top of the pyramid. If we only compare the gap between the rich and the poor in the Gini index and the Hong Kong SAR and Taiwan, it does not reflect the real situation.

How much do millionaires know? Why migrate? Will Singapore be the big winner?

Which one has the strongest public housing policy? (Photo shows public housing in the Hong Kong SAR)

He explained that the biggest difference between Singapore and the two economies mentioned above is the realization of "home ownership". The vast majority of Singapore families easily "live and work" and are quickly promoted to "well-off homes". HDB policy is Singapore's biggest "social underpinning". Therefore, even if the gap between rich and poor as reflected in the Gini coefficient widens, it does not mean that Singapore will be more unstable.

Global wealth: United States has the most millionaires

The Global Wealth Report, published by Switzerland Bank, is the result of a study of 56 economies around the world. In the Global Wealth Report released last year, total global private wealth fell by 2.4%, and the number of millionaires in the world fell by 3.5 million. That was the first decline since the 2008 financial crisis.

According to the report, a large part of this is due to losses in the stock and bond markets, which have had a greater impact on the wealthy.

The Global Wealth Report defines a "millionaire" as a "millionaire" in terms of net worth, minus debt from the value of a household's financial assets and real estate (such as a house).

How much do millionaires know? Why migrate? Will Singapore be the big winner?

This year's report shows that the United States has the largest number of millionaires, close to 22 million, accounting for 38% of the world's millionaires. Chinese mainland ranked second, with more than 6 million; In third place is United Kingdom with about 3.06 million.

However, the report suggests that the United Kingdom will be the country that has lost the most millionaires. The number of millionaires in the United Kingdom will fall by 17% to 2.54 million by 2028. Singapore's millionaires will increase by more than 10% to 375,000.

Fortune migration: Where do millionaires go?

The "Henley Private Wealth Migration Report 2024" released earlier by a London-based investment immigration consulting firm shows that this year will be a watershed moment for global wealth migration. "An unprecedented 128,000 millionaires are expected to move around the world."

As the world is caught in the middle of a storm of geopolitical tensions, economic uncertainty and social unrest, millionaires are "voting with their feet" in record numbers, the report said. The U.A.E., United States and Singapore will be the countries that attract millionaire immigrants the most this year.

How much do millionaires know? Why migrate? Will Singapore be the big winner?

The report shows that the U.A.E. has been the top destination for millionaire immigrants around the world for three consecutive years, continuing to attract large numbers of migrants from India, the Middle East, Russia and Africa, and is expected to see a large influx of United Kingdom and Europeans, which will make the U.A.E. net attract almost twice as many millionaires this year as United States.

Singapore is expected to see a net inflow of 3,500 millionaires this year, behind the U.A.E. and United States.

It is important to note that the definition of a millionaire in the report is slightly different from UBS's Global Wealth Report, which is based on having $1 million in liquid investable wealth.

How much do millionaires know? Why migrate? Will Singapore be the big winner?

The report similarly notes that the United Kingdom will be the biggest loser in the millionaire migration, with an unprecedented net loss of 9,500 millionaires this year.

London has traditionally been seen as a top destination for millionaire immigrants, attracting large numbers of wealthy families from continental Europe, Africa, Asia and the Middle East over the years, the report said. About a decade ago, however, more and more millionaires began to leave the United Kingdom. The trend reversal is very noticeable. In the six years since Brexit (2017 to 2023), the United Kingdom has lost 16,500 millionaires.

On the other hand, after the outbreak of the Russian-Ukrainian war, the exodus of millionaires in Russia is weakening, and only 1,000 people are expected to move abroad this year, far less than the net loss of 8,500 people a year at the beginning of the war in 2022.

Shi Qi丨Author

KS丨Editor

CH丨Editorial review

Essay Nanyang丨Source

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