According to a study by WealthInsight, the number of millionaires in Singapore is expected to grow by 18.3% over the next 5 years.
In 2015, we have approximately one millionaire per 36 people living in Singapore. WealthInsight forecasts that the number of millionaires in Singapore will reach 188,000 by 2020, up from the current number of 154,000 in 2015.
One of the key reasons given for this increase in the number of millionaires expected on our tiny island is due to the country’s ability to continue attracting high networth individuals from neighboring countries.
So what are the reasons why millionaires continue flocking to a country that has no natural resources, limited space and a tight labour market?
1. Highly ranked globally in the Worldwide Governance Indicators Project
We took a look at the Worldwide Governance Indicators Project to evaluate some of the results pertaining to Singapore’s ranking. In total, there were about 200 countries that was part of this project by the World Bank.
|Control of Corruption
|Rule of Law
|Political Stability/No Violence||17th
|Voice and Accountability||112th|
With the exception of Voice and Accountability (no surprise there), Singapore scored very well in all other areas.
A good percentage of millionaires are generally business owners themselves; Even if they are not business owners, they could be investors in businesses or top management personnel in businesses that they work in.
Businesses appreciate a stable country run by an established government with an excellent rule of law. Because of that, a lot of businesses have their headquarters situated in Singapore. With that, their millionaire bosses or top executives also relocated themselves here.
2. Singapore’s infrastructure is rank no.2 in the world
According to the World Economic Forum, Singapore is one of the top countries with the best infrastructure globally.
Despite the constant disappointment of our MRT system, there are other infrastructures that Singaporeans can be very proud of.
PSA International: Top 5 terminal operators in the world
Changi Airport: World’s Best Airport according to SkyTrax
Housing Development Board: Provides one of the best public housing globally
3. Singapore has one of the lowest tax rates in the world
Singapore is well known to be a tax haven as corporate and individual taxes are much lower here compared to other developed nations around the world.
Singapore was ranked 10th lowest tax country globally by BusinessInsider. However if you were to exclude Middle East and ex-Soviet nations, we would have been 1st.
Once you compare our infrastructure and other World Bank indicators, Singapore would easily outshine in totality, which would explain why so many millionaires are attracted to live in our country.
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