Singapore and her millionaires – does it matter?

June 20, 2012 | 11:33 pm

The number of “High Net Worth Individuals” – someone with over US$1 million at his or her disposal to be used for investment purposes – in Singapore has declined by 7.8 per cent in 2011 following a drop in exports, says the 16th Annual World Wealth Report by Capgemini and RBC Wealth Management.

However, a separate Global Wealth 2012 report by the Boston Consulting Group found that the number of millionaire households in Singapore has increased from 165,000 to 188,000 in 2011, putting Singapore in the top spot as the country with the highest proportion of millionaire households (17 in every 100 households).

A tiny, prosperous island nation at the tip of the Malay Peninsula, Singapore’s pro-business model, proximity to growing Asian markets and reputation for safety and efficiency has attracted many multi-national companies and expat entrepreneurs. On top of local success stories like Sim Wong Hoo, Singapore is home to a number of high profile immigrant millionaires such as New Zealand businessman Richard Chandler, US financier Jim Rogers and Facebook co-founder Eduardo Saverin. Earlier this month it was reported that Australian coal mining tycoon Nathan Tinkler will also be relocating to the city-state, so as to pursue interests in Asia.

Impressive though they may sound, these reports and statistics have a very limited effect on the lives of the average Singaporean feeling the squeeze of the rising cost of living. Singapore has been reported as being the sixth most expensive city in Asia and 42 per cent more expensive than New York. Cars and property are notoriously expensive, a particularly sore point for many locals. The affordability of homes – and indeed, of life in Singapore in general – was a hot-button issue during the 2011 General Election.

In fact, highlighting the number of millionaires may only remind people of the high income inequality in Singapore. This problem has already drawn comments from top economists like Lim Chong Yah and Yeoh Lam Keong who have stressed the need for change in wage and economic policies. There are disagreements about what the best solution is, but one thing remains clear: something needs to be done before Singapore becomes nothing more than a playground for the rich and a painful struggle for everyone else.

Asia