Singapore's Millionaires Increase at Fastest Pace in World

June 10, 2006 (Bloomberg) -- The number of millionaires in Singapore rose at the fastest pace in the world in 2004, according to a report by Cap Gemini & Merrill Lynch & Co.

Singapore millionaires rose 22.4 percent to 48,500, the report said. In the U.S. the number increased 10 percent to 2.5 million and in Hong Kong they rose by 18.8 percent to 67,500. Asia had 2.3 million millionaires last year, up 8.2 percent, the research showed.

China's economic growth of 9.5 percent last year drove economic growth across the Asia Pacific region, the report said, and the world's most populous nation will continue to generate new wealth. Wealth globally swelled to $30.8 trillion by the end of 2004.

``China is generating wealth for a lot of people in Asia,'' said Stephen Corry, Merrill Lynch's vice president for regional equity strategy.

A yuan revaluation of 10 percent, which Merrill expects, would make it less expensive for mainland Chinese investors to purchase property here, or travel to the region for business and leisure. ``That spending effect is going to be positive for the entire region,'' he said.

Still, the number of Chinese millionaires grew by 4.3 percent to 299,500, compared with a 25 percent growth rate in 2003. That was due mainly to a slump in China's stock indexes, which are the worst performers among 79 benchmarks tracked by Bloomberg worldwide during the past 12 months.

Li Ka-shing, who controls Hutchison Whampoa Ltd. and Cheung Kong Holdings Ltd., is Hong Kong's richest and the world's 22nd richest man, according to an annual survey published by Forbes magazine. Singapore's richest man, property magnate Kwek Leng Beng, is worth $2.8 billion, Forbes said. Kwek owns City Developments Ltd., and the Millennium and Copthorne Hotel chains.

The report projects Asian wealth to grow by 6.9 percent annually to $10.1 trillion by 2009, compared with a 3.8 percent growth in European wealth to $10.7 trillion.

To contact the reporter on this story: Douglas Wong in Hong Kong at dwong19@bloomberg.net
Last Updated: June 10, 2005 08:04 EDT