More Singaporeans are becoming millionaires

Despite a lackluster stock and real-estate market in Singapore, the number of wealthy individuals in the country keeps on growing.

The number of high net worth individuals (HNWI) rose by 4.5% last year - meaning the number of Singapore's millionaires increased to 105,100 from 100,500 the previous year.

The World Wealth Report by Capgemini and the Royal Bank of Canada showed the combined wealth of this group - identified as those with at least US$1 million (S$1.25 million) in investable assets - grew by 7%, from US$489 billion to US$522.6 billion.

The report stated Asia now has nearly as many of the 'ultra-rich' as North America, and could be set to take over, as Asia Pacific's HNWIs grew by 17% to reach 4.32 million, compared with North America's 16%.

However North America still reigns as the wealthiest region with its HNWI wealth calculated at US$14.8 trillion.

In Asia, Hong Kong's wealthy population also grew - up 9.4% to 124,000 - with its combined wealth of HNWIs increasing nearly 12% to US$626.9 billion, which has been mostly driven by rising stock and real-estate markets.

"Since the financial crisis in 2008, the top 25 markets fall into three distinct categories of growth," the report stated. "The above-average growth country cluster represents a diverse mix of markets, including the smaller, oil-rich markets of Norway and Kuwait, the regional and global financial centers of Hong Kong and Singapore, as well as the emerging economic powerhouses of China, India, Russia, and Taiwan."

Claire Sauvanaud, vice president and senior account executive of Capgemini Asia told The Straits Times that Singapore's business owners and entrepreneurs have become more wealthy because of their own ability to create wealth, thanks to Singapore's overall strong economic growth.

"So, despite the stock and real-estate markets going down, many Singaporeans have become wealthier," she said.

Image: Shutterstock