Wealth predicted to grow

The number of wealthy individuals in Singapore is set to increase from 410,000 to more than 600,000 by 2011, a new report has predicted.

The Datamonitor Wealth Management in Singapore 2007 report also predicts the assets these wealthy individuals hold will increase from US$140 billion to US$210 billion in the next five years.

Datamonitor financial services analyst David Lalich, the author of the report, said competition among fund managers in the Asian country will increase as wealth grows.

“With more Singaporean individuals poised to join the ranks of the wealthy during the next five years, fund managers will do well if they attract these new clients to their firms,” he said.

The researcher defines a wealthy individual as somebody holding US$60,000 of liquid investments onshore, which includes cash, bonds, equities and unit trusts.

Datamonitor sees Singapore’s economic performance continuing to grow despite a predicted global downturn in 2008-09.

“Singapore operates as an open and free-market economy, which leaves it heavily dependent on foreign trade and investment from other international economies,” Lalich said.

“As a result, the Singaporean economy suffered from a series of adverse events between 2001 and 2003, including the global economic downturn and the SARS virus outbreak that spread across parts of East Asia.

“However, returned international trade and tourism since 2004 have allowed Singapore to produce strong economic growth and sharp increases in its equity values.”

The global downturn will particularly hit the US and UK, the researcher predicts, but Singapore’s economy will grow at a faster rate than in the first five years of this century.