Singapore clinches ninth spot in highest average wealth per adult: Credit Suisse

It hit $390,280, thanks to high savings and asset price increases.

With an average wealth per adult of $390,280 (US$283,120) as of mid-2018, Singapore placed ninth in the world for the biggest household wealth per adult, according to the Global Wealth Report by Credit Suisse. The average amount has more than double of the city state’s average wealth per adult in 2000 which was at $158,141 (US$114,720).

According to the study, the wealth surge was pushed by high savings, asset price increases, and a rising exchange rate from 2005 to 2012.

“Personal wealth per adult grew strongly in Singapore up to 2012,” the study noted. “After that it dipped, mostly due to depreciation against the US dollar, but it has been growing again since 2015.”

With this, Singapore has beaten Hong Kong which used to place better in the 2000 rankings. The Lion City’s average annual rate of growth for wealth per adult which was at 5.3% outpaced Hong Kong’s annual rate of 4.3% from 2000 to 2018.

“This went along with higher GDP per capita growth in Singapore over the same period,” the study explained.

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The country’s gross household wealth is largely comprised of financial assets (55%), which is similar to that of Switzerland. The study also found that wealth inequality in the Lion City is not so extreme, as indicated by its wealth Gini coefficient of 76% and share of the top 1% of wealth holders of 33%.

Financial assets make up 55% of the gross household wealth in Singapore, a ratio similar to that of Switzerland, for example.

Meanwhile, the study also found that wealth inequality in Singapore is not extreme, as indicated by its wealth Gini coefficient of 76% and share of the top 1% of wealth holders of 33%. Only 7 in 50 people have wealth below $13,785 (US$ 10,000), compared with 64% globally.

Moreover, the study found that 220,000 individuals or 0.5% of its adults are part of the top 1% of the global wealth holders. This is a high number given that Singapore only holds 0.1% of the world’s adult population, the study noted.

According to the report, the US continues to have the biggest chunk of global wealth followed by the Asian giant, China.