This article below appeared in The Straits Times 12 March 2013 (see the Wealth Report 2013)
Singapore ‘set to be No. 2 wealth centre in the world’
It will overtake NY in 10 years; London remains No. 1, says report
By Cheryl Ong
SINGAPORE will not only continue to be a favourite investment destination
for rich folk but will become one of the world’s top two wealth centres,
according to a new report.
It found that Singapore will move up from its third ranking now to surpass
New York and take the number two position within 10 years. London is
expected to hold the number one spot.
“Singapore’s growing importance as a global city bodes well for its
development as Asia’s wealth management hub,” said Mr Renato de Guzman,
chief executive of Bank of Singapore, which compiled the report with
property consultancy Knight Frank.
“Our clients have often cited Singapore’s political and economic stability
and well-regulated financial sector as key factors that make it an
attractive investment decision.”
Knight Frank director and research head Png Poh Soon added: “The 10-year
forecast affirms our place in the global scene in the future as a city of
choice for [high net worth individuals].”
The firm also forecasts that the number of such wealthy people here will
increase by 40 per cent within 10 years.
It noted that European wealth centres have weakened since last year’s
survey. “Paris drops to ninth place in the popular vote and Berlin falls out
of the top 10 altogether,” the report said.
“Once again, Singapore has had a very strong year, eclipsing Paris and even
Hong Kong, which it has previously lagged.”
A separate Knight Frank survey of 400 private bankers around the world
placed Singapore in sixth place out of 40 cities considered important to
wealthy investors.
The survey was based on a indicators such as economic activity, political
power, quality of life and knowledge and influence.
Mr Poh also noted that property will continue to feature strongly in the
investment portfolios of the rich. “As prices of prime homes stabilise, we
believe Singapore homes will be a good long-term investment as high net
worth individuals continue to favour Singapore as a global city of choice.”
He added that the increased taxes for pricey real estate unveiled in the
Budget will not deter investment from the rich. “I think this is something
more of a slight dent in their wealth, it’s probably not going to be a big
issue.”