Affluent in Singapore lose confidence in wealth
The rich in Singapore are losing confidence in their wealth and are searching for solid investment options.
According to Channel News Asia, a Standard Chartered survey concluded that many of Singapore’s affluent have declined in wealth confidence owing to unsure economic landscape.
The study by Standard Chartered Bank and Scorpio Partnership is a Future Priority Report 2012 that aspires to capture sentiments of over 2,700 wealthy individuals across nine markets in Asia.
The Singapore property markets included 300 individuals from Singapore with an average annual income of S$159, 290 (US$126,000).
The study demonstrated that as the confidence level is lower than the year before (76 per cent) a majority of Singapore’s affluent (70 per cent) stay confident in increasing their wealth in the next 12 months.
Channel News Asia noted that while “Singaporeans are bullish on Asia,” about a third of Asian respondents view Europe and North America as “offering good wealth creation prospects in the next 12 months.”
Throughout a five-year horizon these numbers have increased considerably, predominantly for the Middle East, Latin America, and Africa.
The Singaporeans survey was shown to enlarge their wealth to an average of S$4.5 million (US$3.6 million) from a present average wealth of S$1.5 million (US$1.2 million).
The Asian affluent showed a liking for tangible investment options, stating gold (44 per cent), high interest savings (43 per cent), and real estate (34 per cent) as their top choices.
Nonetheless, it was reported that “Singaporeans are less bullish on gold and opt for high interest savings and shares as investment preference.
To realize the wealth gold over an average of 10.9 years, they require 10 per cent annual returns on their wealth.
Still, the average Asian affluent is perceived as more insistent, aspiring to increase their wealth by 12 per cent per annum over the next 10 years to S$5 million (US$4 million).
The highest money goal is set in South Korea (US$6 million), followed by India (US$4.8 million) and China (US$4.5 million).