Singapore is one of the countries with a high proportion of millionaires globally. Approximately 11 out of every 100 Singaporeans are millionaires.
According to reports, the annual wealth survey by the Boston Consulting Group indicates that Singapore's millionaire proportion is 11.4%, ranking first in the world.
Following closely are the Hong Kong region and Switzerland, with Middle Eastern countries such as Kuwait, Qatar, and the United Arab Emirates ranking fourth to sixth, while the United States ranks seventh.
Reports indicate that the United States has 4.72 million millionaire households, making it the country with the most millionaire households. Europe remains the wealthiest region globally, with total managed assets reaching $37.1 trillion.
The report points out that while global wealth has increased, there is a trend of increasing concentration, with less than 1% of households worldwide classified as millionaires, and millionaire households controlled 38% of global assets last year, up from 36% the previous year.
Although the assets of wealthy individuals seem to have recovered from the impact of the 2008 economic crisis, their trust in financial advisors has not yet been restored.
A survey conducted by the Boston Consulting Group on 114 wealth management firms found that while total managed assets grew by an average of 14.3% last year, asset management revenues decreased by 7.3%, primarily due to declining fees, difficulty in negotiation, and investors shifting towards liquid and simple low-risk asset classes and investment projects.
Bruce Holley, a senior partner at the Boston Consulting Group's New York office, stated that despite the recovery of wealth after the 2008 financial tsunami, investors remain cautious.
Reports indicate that the number of wealthy households and global wealth decreased during the 2008 financial tsunami, and last year's report originally anticipated that global wealth would not return to pre-recession levels until at least 2013, but it has now nearly recovered to 2007 levels.
Holley said: “Given the severity and scale of this financial crisis, I am surprised by the speed of global wealth recovery.”
The Boston Consulting Group predicts that global wealth will grow at an average rate of 6% annually from this year to 2014, higher than the 4.8% annual average growth from 2004 to 2009. The wealth growth in the Asia-Pacific region, excluding Japan, is expected to be double that of the global growth rate.
The group also anticipates that with the economic growth engines of China and India, the Asia-Pacific region's share of global wealth will increase from 15% last year to 20% by 2014. In the next five years, the total managed assets in China and India are expected to increase by $9 trillion, accounting for 75% of the region.
The total managed assets in the Asia-Pacific region increased by 22% to $17.1 trillion, making it the region with the highest growth rate. The North American region, including the United States and Canada, saw total managed assets increase by $4.6 trillion (15%) to $35.1 trillion, the highest absolute gain region.
