Singapore's household wealth grew 3.4% to US$1.2 tril

Singapore's household wealth grew 3.4% to US$1.2 tril

Samantha Chiew
14/11/17, 04:15 pm

SINGAPORE (Nov 14): According to the Credit Suisse Research Institute’s 2017 Global Wealth Report, Singapore’s household wealth increased by 3.4% to US$1.2 trillion ($1.6 trillion) and is expected to increase by 2.3% per annum over the next five years to reach US$1.3 trillion in 2022.

Personal wealth per adult grew strongly in Singapore up to 2012. Since then, it has risen slowly in domestic currency units, and declined a little in terms of US dollars.

Despite this drop, average wealth remains at a high level of US$268,800 per adult in mid-2017 -- ranking ninth globally among major economies -- compared to US$115,560 in 2000.

The rise was mostly caused by high savings, asset price increases, and a favourable rising exchange rate from 2005 to 2012.

Similar to Switzerland, financial assets account for 56% of gross household wealth in Singapore.

Meanwhile, the average debt of US$50,570 per adult is considered moderate for a high-wealth country, representing 16% of total assets.

In 2017, the number of millionaires in Singapore increased by 2.7% to 152,000. These individuals own a total wealth of US$570 billion, an increase of 8%. Meanwhile, the number of ultra-high-net-worth individuals (UHNWI) in Singapore also increased 15.3% to 961, ranking 20th globally.

Credit Suisse expects the number of millionaires to grow 2.3% every year to 170,000 in 2022 and the number of UNHWI to grow at a similar rate to just over 100.

According to the report, total global wealth increased at a rate of 6.4%, the fastest pace since 2012, to reach US$280 trillion.

This reflected widespread gains in equity markets matched by similar rises in non-financial assets, which moved above the pre-crisis year 2007’s level for the first time this year. Wealth growth also outpaced population growth, so that global mean wealth per adult grew by 4.9% and reached a new record high of US$56,540 per adult.

US leads the gains in global wealth driven by stronger financial assets, reaching about US$93.6 trillion in 2017, or equivalent to 33% of total global wealth.

In Asia Pacific, wealth increased by 3% to US$89 trillion in 2016. The slower growth was mainly due to adverse currency movements.

China generated the largest wealth growth in the region, with its total wealth increasing by 6.3% to US$29 trillion, due to currency depreciation against USD.

According to the report, global wealth should continue to grow at a similar pace to the last half a decade (3.9% expected and 3.8% recorded over last five years), albeit at a slower rate than the previous estimate of 5.4%.

Based on this updated forecast, global wealth is anticipated to reach US$341 trillion by 2022.

In Asia Pacific, wealth is expected to grow by 5.3% per annum to reach US$115 trillion in 2022, with the fastest growth coming from India, Indonesia and Philippines.

2019 GDP growth to ease to 'slightly above midpoint' of 1.3-3.5% forecast: MAS

SINGAPORE (Apr 26): MAS expects GDP growth to come in slightly above the mid-point of 1.3-3.5% forecast range in 2019, as growth momentum of the global economy has moderated at the turn of the year amid sluggish trade. This was according to the Guide to the Macroeconomic Review April 2019, released by the Monetary Authority of Singapore’s (MAS) Economic Policy Group on Friday morning. On the back of easing GDP growth, MAS has decided to maintain the current rate of appreciation of the SGD NEER policy band. This policy stance is consistent with a modest and gradual appreciation path of ....

CapitaLand Mall Trust kept at 'hold' by OCBC and Maybank on higher mall supply, soft retail sector

SINGAPORE (Apr 26): OCBC Investment Research says CapitaLand Mall Trust’s (CMT) 1Q19 results met its expectations. Gross revenue rose 10.0% y-o-y to $192.7 million while NPI jumped 11.5% to $140.1 million, forming 25.1% of its FY19 forecast. See: CapitaLand Mall Trust declares 3.6% higher DPU of 2.88 cents on higher income OCBC says Funan has already achieved high pre-commitment levels of 90%, and is on track to open in the middle of 2019 and will thus contribute to CMT’s earnings progressively from 2H19. However, the near-term outlook remains cautious given the higher supply, ....

Singapore's GLP plans US$3 billion IPO for its US warehouses

(Apr 26): Singapore-based GLP is planning an initial public offering (IPO) for its US operations that could raise about US$3 billion ($4.09 billion). GLP may seek to value the operations at more than US$20 billion, and the firm is said to have confidentially filed with securities regulators for the planned offering. Much of GLP’s US business stems from a 2014 deal to acquire IndCor Properties from Blackstone Group for US$8.1 billion. The offering could help GLP recoup funds after it was taken private by a management-backed consortium from the Singapore stock exchange last year. GLP ....