According to Capgemini’s World Wealth Report of 2018, Singapore’s number of high net worth individuals, or HNWIs, has grown 11.5% since 2017, consequently representing one of the best and fastest years of growth for the sector since 2011.
The Paris-based consultancy firm asserts that this increase in number of the Singaporean ultra-rich and elite as well as the uptick in their wealth (from US$761.2 billion to US$858.4 billion in 2017) is due to a combination of the following circumstances: the increase in the nation’s GDP (by 3.6%), recovering real estate prices (by 1.1%), well-managed national savings (46.5%), and increasing market capitalization over the past year.
Core inflation rates remained around 1.5% in 2017 and is set to rise to the upper half percentile between the range of 1% and 2%.
The consultancy added that the Singaporean government has decided to raise taxes in order to meet the demand, given the fact that government expenditure on national security, health care, and other social services is expected to hit 3% of the state’s GDP over the next decade.
HNWIs combined to reach the US$70 trillion (SGD94.9 trillion) level for the first time ever – consequently representing its sixth straight year of consecutive gains (with HNWI global wealth increasing 10.6%), and its second-fastest year of gains since 2011.