As Singapore's wealth continues to grow, so does the gap between the rich and the poor. According to the UBS "Global Wealth Report 2024" released on Wednesday (July 10), Singapore is expected to see an increase of over 10% or 42,000 in its US-dollar millionaire population by 2028.
The report reveals that as of last year, Singapore was home to 333,000 US dollar millionaires, with their combined wealth exceeding 1 trillion USD (approximately 1.35 trillion SGD). Since the global financial crisis of 2008, the average wealth per adult in Singapore has grown by 116% in SGD terms.
However, this growth comes with a caveat. The Gini Coefficient measures income inequality and has reached 70, marking a 23% increase since 2008. While this figure is lower than the regional average, it surpasses that of Hong Kong and Taiwan, indicating a faster wealth accumulation among the affluent class while the less wealthy experience stagnant growth.
The report, covering 56 markets, ranks Singapore eighth in average personal wealth. However, when considering median wealth, Singapore ranks 18th. Singaporeans hold two-thirds of their total assets in financial assets such as stocks, bonds, savings, and other securities traded in financial markets. This proportion is higher than the Asia-Pacific average but lower than Hong Kong's. The debt ratio of Singaporeans is below 14%, consistent with the regional average but slightly higher than Hong Kong's.
As Singapore continues its economic ascent, the challenge of balancing growth with equitable wealth distribution becomes increasingly apparent. The coming years will be crucial in shaping policies that promote inclusive growth and address the widening wealth gap.
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