Singapore is often cited as one of the world’s most expensive places to live. However, Singapore also boasts a high general level of wealth. When considering Gross Domestic Product (GDP) per capita, adjusted for purchasing power parity (PPP), Singapore ranks as the fourth-wealthiest country globally.
According to data from the International Monetary Fund (IMF), Singapore’s GDP-PPP per capita in 2023 was US$133,740. This places Singapore behind only Ireland (3rd), Macau SAR (2nd), and Luxembourg, which holds the top spot.
In many of these top-ranked wealthy countries, the wealth held by the top 10% of the population is staggering, and the disparity becomes even more pronounced when considering the top 1%.
Given this context, what are the income and net worth thresholds to be in the top 1% in Singapore, both in terms of annual earnings and overall wealth?
Net Worth To Be In Singapore’s Top 1%
To calculate net worth, all investments and assets owned by an individual are typically included in the assessment. This includes stocks, bonds, real estate, private equity, and alternative assets such as gold or even Bitcoin.
According to the latest Knight Wealth Report 2024, which examined global wealth levels as of Q4 2023, to be part of the top 1% in Singapore in terms of net wealth, an individual needed to own assets worth US$5.23 million (S$7.06 million).
This ranking made Singapore the top country in Asia for net worth required to be in the top 1%, with only the US, Switzerland, Luxembourg, and Monaco ahead in the global rankings.
The next highest place in Asia was Hong Kong SAR, which ranked 12th globally. In Hong Kong, the net worth required to be in the top 1% was US$3.09 million.
Source: Knight Frank Wealth Report 2024
The figure for Singapore saw a significant increase from the Knight Frank Wealth Report 2023, which required a net worth of US$3.5 million in the top 1% as of Q4 2022.
This rise can be attributed to the strong performance of global stocks in 2023, which likely helped many individuals in Singapore increase their net worth. Other financial assets, such as gold, also performed strongly.
Additionally, Singapore has enhanced its appeal as a hub for wealth management in recent years. Consequently, the number of family offices in the city-state has grown to 1,100, collectively managing over US$4 trillion in wealth. This substantially increased from less than 100 family offices a decade ago.
Read Also: How To Set Up A Singapore Family Office
Annual Earnings To Be In Singapore’s Top 1%
Annual earnings differ from overall net wealth or worth. According to Salary.sg, an income comparison website using data from the IRAS Annual Report FY2021/2022, you needed to earn S$191,000 annually to be in Singapore’s top 10% of earners.
To be in the top 1% of earners in Singapore, you would need to earn S$696,000 annually. This figure represents an increase compared to the 2021 Economic Freedom Index findings, which examined annual earnings in Singapore as of the end of 2020.
In the 2021 Economic Freedom Index, the threshold for the top 10% of earners in Singapore was S$193,352 annually, slightly higher than the 2022 figure.
Overall, reaching the top 1% in Singapore in terms of annual earnings and net wealth requires a substantial amount of money. Given Singapore’s attractiveness as a wealth management hub in Southeast Asia and its robust economy, this figure may continue to increase.
Read Also: 5 Items That Contributed To Singapore Being The Most Expensive City In The World
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