Singapore is one of the richest nations in the world – and No.1 in Asia for gross financial assets

Singapore has earned its position as one of the richest nations in the world, with its citizens having an average of EUR 89,570 (S$143,000) in net per capita financial assets.

According to the Allianz Global Wealth Report 2017, the ‘little red dot’ is currently ranked seventh globally and third in Asia.

The United States tops the table with Americans having an average of EUR 177,210 in net per capita financial assets.

When looking at gross per capita financial assets, Singapore’s average of EUR 125,640 per person, moves the nation up to the No.1 position in Asia.

On a global scale, Singapore is ranked eighth, and well surpasses the global average of EUR 70,060.

The term “gross financial assets” refers to the sum of assets such as bank deposits and securities, while “net financial assets” refers to the sum of these assets minus liabilities like loans.

The Allianz Global Wealth Report 2017 is based on data from 53 countries – covering around 90% of global GDP and 69% of the global population.

Singapore’s strong performance could be attributed to debt growth remaining low in the last year, allowing the debt ratios (debt as a percentage of the total GDP) to continue on its decline, said the report.

However, Singapore’s debt ratio (73.7%) was still above the world average (71.5%) and the regional average (50.2%).

Allianz Global Wealth Report 2017

Its per capita liabilities was also amongst the highest in Asia at the end of 2016, but asset growth accelerated considerably in 2016, reaching 7.4 per cent, reported the Straits Times.

The growth was mainly due to “high growth of insurance and pensions assets, whose share in the asset portfolio of Singaporean households is higher than in all other Asian countries, at 46.3%”, Allianz told ST.

When looking at Asia as a whole, the report found that the region was once again the uncontested leader in 2016 in terms of growth (15%).

The dominance of Asia becomes even clearer in a long-term comparison, when inflation is also taken into account.

Gross per capita financial assets in Asia (excluding Japan) grew by almost 11% per year in real terms in the last decade, while Latin America and Eastern Europe only grew about 5%.

North America and Western Europe showed even slower growth rates, at about 2.1% and 1.4% respectively.

In Asia, bank deposits remained the most popular asset class among private households – making up 45.3% of total gross financial assets in the region.

But households in Singapore particularly favoured life insurance policies and pension funds (46%) over bank deposits (37%).

Allianz Global Wealth Report 2017