- Joined
- Jul 24, 2008
- Messages
- 33,627
- Points
- 0
<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR class=msghead><TD class=msgbfr1 width="1%"></TD><TD><TABLE border=0 cellSpacing=0 cellPadding=0><TBODY><TR class=msghead vAlign=top><TD class=msgF width="1%" noWrap align=right>From: </TD><TD class=msgFname width="68%" noWrap>Fkapore <NOBR></NOBR> </TD><TD class=msgDate width="30%" noWrap align=right>5:14 am </TD></TR><TR class=msghead><TD class=msgT height=20 width="1%" noWrap align=right>To: </TD><TD class=msgTname width="68%" noWrap>ALL <NOBR></NOBR></TD><TD class=msgNum noWrap align=right> </TD></TR></TBODY></TABLE></TD></TR><TR><TD class=msgleft rowSpan=4 width="1%"> </TD><TD class=wintiny noWrap align=right>34809.1 </TD></TR><TR><TD height=8></TD></TR><TR><TD class=msgtxt>Wealth
Millionaires galore
Cheerily, their numbers are skyrocketing - time to prepare for an even higher cost of living in Singapore. By Seah Chiang Nee.
Jun 19, 2010
SINGAPORE has recovered nicely from an economic crisis, but few people are aware of the scale it has been accumulating wealth during the past year.
With 36% foreigners, the country last year produced millionaires at a rate faster than any other country in the world, according to a global survey.
The Boston Consulting Group (BCG) said the number of millionaires in the island republic increased by 35% – ahead of second-placed Malaysia (33%) and red-hot China.
Its annual report also showed that 11.4% of Singaporean households had more than US$1mil in investable assets, excluding property.
This was the highest concentration of millionaire families in the world - ahead of Hong Kong, Switzerland, Kuwait, Qatar, United Arab Emirates and the United States, BCG reported.
(In absolute terms, America has 4.7 million more wealthy families – by far the most – followed by Japan and China, the report added.)
The high-end wealth boom has filtered down to a segment of upper middle class and parts of the heartland.
“At this rate, every other man you encounter on the street will soon turn out to be a millionaire,” commented a retired teacher. If property is included, the wealth level rises further.
Yet he is worried – rather than happy – with the millionaire explosion. He fears a permanently higher cost of living.
Others are worried that it will widen the gap between rich and poor because the bottom 20% in incomes has been stagnating for years.
Reflecting the views of others, the former business teacher said he believed the wealth was mainly due to the influx of rich foreigners who can buy or rent property from locals.
A recovering economy driven by foreign money has significantly increased demand for goods and services. The heartland is spending more.
Weekend queues are appearing again in restaurants despite price escalation. People are upgrading their taste for pricier Italian, Japanese or Korean food.
A while back, a reporter observed that even school canteens were going up-market, offering pizza, lasagna, sushi and ice-blended drinks to students who, at times, have to eat three meals in school.
The price of cars, already the world’s costliest, is rising still higher.
During this season of The Big Sales and with the mid-year school holidays, the shopping arcades are packed.
A major factor is the threatened property balloon developing in the market, where rich profits are made.
A significant part of the foreign funds has ended up with middle-class Singaporeans.
There has been a dramatic reversal of fortunes in just a little over a year.
Before it happened, a recession had wiped out 21% of Singapore’s millionaire community.
Foreigners were packing their bags for home, leaving behind thousands of empty condos.
They have since returned, at first slowly, then with increased tempo.
“The new super-rich are the mainland Chinese, and there are plenty of them in Singapore.”
It has led to complaints from Singaporeans that their country is becoming a haven only for the wealthy.
Several years ago they led Prime Minister Lee Hsien Loong to assure undergraduates that Singapore is not just for the rich.
“It is a place where the vast majority of Singaporeans will enjoy a high quality of life,” Lee said.
So how much of the middle class is really benefitting from all this?
Answer: Apparently a fair bit. The reason is because Singaporeans had always been the region’s top savers to begin with.
Some 60% of households have bankable assets worth between US$250,000 and US$1mil, a BRG representative was quoted by the Straits Times as saying.
Some negative factors are increasing, though.
Singaporeans have just been told that their city is now the 9th most expensive place in Asia, dislodging Guangzhou and Shenzhen.
The higher costs are putting the squeeze on people who are not benefitting from the upturn, but paying the higher costs of living.
Other sufferers are the unemployed – or under-employed – and the elderly.
With so many foreigners buying real estate, the over-heating market is both a blessing and a curse.
Older citizens who had the foresight to buy property when they were young are now well-placed to ensure a reasonable retirement.
Not so young, property-less graduates who plan to get married and build a life; the market is moving beyond their reach.
In the recent period of rising prices, I have watched several friends selling off their property to buy a cheaper home so they can have enough money to live through their days without income.
For owners of expensive homes, the temptation to “take profit” is rising. While some have done very well, many – having sold off – have found it hard coping with high rents.
This has led to the long-term impact of Singaporeans cashing in their most valuable assets for temporary gains.
Asked prominent commentator Chuan Chin Leng after observing there are several thousand billionaires in China alone, with numerous rich Indians, Indonesians, Malaysians and all over the world:
“How much more luxury property can we build to sell to the super-rich before we run out of space?”
Above all, Chua asked: “Why are we selling our precious land and space so happily? Who is benefitting and where is the money going to?”
(This was published in The Star on June 19, 2010)
</TD></TR><TR><TD class=msgVFM colSpan=2 align=middle>View Full Message</TD></TR></TBODY></TABLE>
Millionaires galore
Cheerily, their numbers are skyrocketing - time to prepare for an even higher cost of living in Singapore. By Seah Chiang Nee.
Jun 19, 2010
SINGAPORE has recovered nicely from an economic crisis, but few people are aware of the scale it has been accumulating wealth during the past year.
With 36% foreigners, the country last year produced millionaires at a rate faster than any other country in the world, according to a global survey.
The Boston Consulting Group (BCG) said the number of millionaires in the island republic increased by 35% – ahead of second-placed Malaysia (33%) and red-hot China.
Its annual report also showed that 11.4% of Singaporean households had more than US$1mil in investable assets, excluding property.
This was the highest concentration of millionaire families in the world - ahead of Hong Kong, Switzerland, Kuwait, Qatar, United Arab Emirates and the United States, BCG reported.
(In absolute terms, America has 4.7 million more wealthy families – by far the most – followed by Japan and China, the report added.)
The high-end wealth boom has filtered down to a segment of upper middle class and parts of the heartland.
“At this rate, every other man you encounter on the street will soon turn out to be a millionaire,” commented a retired teacher. If property is included, the wealth level rises further.
Yet he is worried – rather than happy – with the millionaire explosion. He fears a permanently higher cost of living.
Others are worried that it will widen the gap between rich and poor because the bottom 20% in incomes has been stagnating for years.
Reflecting the views of others, the former business teacher said he believed the wealth was mainly due to the influx of rich foreigners who can buy or rent property from locals.
A recovering economy driven by foreign money has significantly increased demand for goods and services. The heartland is spending more.
Weekend queues are appearing again in restaurants despite price escalation. People are upgrading their taste for pricier Italian, Japanese or Korean food.
A while back, a reporter observed that even school canteens were going up-market, offering pizza, lasagna, sushi and ice-blended drinks to students who, at times, have to eat three meals in school.
The price of cars, already the world’s costliest, is rising still higher.
During this season of The Big Sales and with the mid-year school holidays, the shopping arcades are packed.
A major factor is the threatened property balloon developing in the market, where rich profits are made.
A significant part of the foreign funds has ended up with middle-class Singaporeans.
There has been a dramatic reversal of fortunes in just a little over a year.
Before it happened, a recession had wiped out 21% of Singapore’s millionaire community.
Foreigners were packing their bags for home, leaving behind thousands of empty condos.
They have since returned, at first slowly, then with increased tempo.
Recently a Chinese national created waves by paying S$36mil for a bungalow on Sentosa island, the most expensive residential sale.
This prompted surfer Wally Buffet to write: “Forget about the Indians, the Malaysians and the Indonesians. They are no longer the super-rich.“The new super-rich are the mainland Chinese, and there are plenty of them in Singapore.”
It has led to complaints from Singaporeans that their country is becoming a haven only for the wealthy.
Several years ago they led Prime Minister Lee Hsien Loong to assure undergraduates that Singapore is not just for the rich.
“It is a place where the vast majority of Singaporeans will enjoy a high quality of life,” Lee said.
So how much of the middle class is really benefitting from all this?
Answer: Apparently a fair bit. The reason is because Singaporeans had always been the region’s top savers to begin with.
Some 60% of households have bankable assets worth between US$250,000 and US$1mil, a BRG representative was quoted by the Straits Times as saying.
Some negative factors are increasing, though.
Singaporeans have just been told that their city is now the 9th most expensive place in Asia, dislodging Guangzhou and Shenzhen.
The higher costs are putting the squeeze on people who are not benefitting from the upturn, but paying the higher costs of living.
Other sufferers are the unemployed – or under-employed – and the elderly.
With so many foreigners buying real estate, the over-heating market is both a blessing and a curse.
Older citizens who had the foresight to buy property when they were young are now well-placed to ensure a reasonable retirement.
Not so young, property-less graduates who plan to get married and build a life; the market is moving beyond their reach.
In the recent period of rising prices, I have watched several friends selling off their property to buy a cheaper home so they can have enough money to live through their days without income.
For owners of expensive homes, the temptation to “take profit” is rising. While some have done very well, many – having sold off – have found it hard coping with high rents.
This has led to the long-term impact of Singaporeans cashing in their most valuable assets for temporary gains.
Asked prominent commentator Chuan Chin Leng after observing there are several thousand billionaires in China alone, with numerous rich Indians, Indonesians, Malaysians and all over the world:
“How much more luxury property can we build to sell to the super-rich before we run out of space?”
Above all, Chua asked: “Why are we selling our precious land and space so happily? Who is benefitting and where is the money going to?”
(This was published in The Star on June 19, 2010)
</TD></TR><TR><TD class=msgVFM colSpan=2 align=middle>View Full Message</TD></TR></TBODY></TABLE>
