Singapore Ranks Fourth Globally for Net Financial Assets Per Capita in 2024
Singapore continues to solidify its position as one of the world’s wealthiest nations, ranking fourth globally in terms of net financial assets per capita, according to the Allianz Global Wealth Report 2024. The report revealed that Singapore residents held an average of €171,930 (S$246,000 or RM800,000) in net financial assets per capita by the end of 2023.
Singapore’s Global Wealth Standing
Singapore outperformed many other countries, including Taiwan and Japan, ranking ahead of Taiwan’s fifth-place (€148,750) and Japan’s twelfth-place (€91,940). The United States secured the top spot with €260,320 per capita, followed by Switzerland (€255,440) and Denmark (€172,200), narrowly beating Singapore.
Malaysia’s Position in Comparison
In contrast, Malaysia was ranked 40th, with net financial assets per capita of €9,430 (RM44,000). This disparity highlights the significant gap in financial asset accumulation between the two neighboring countries.
Drivers of Singapore’s Wealth Growth
Singapore’s gross financial assets grew by 5.8% in 2023, nearly doubling the rate recorded the previous year. According to Allianz, key contributors to this growth were investments in securities and bank deposits, while insurance and pension assets lagged behind. Despite rising global interest rates, household borrowing remained cautious, leading to a modest 1% rise in liabilities in 2023.
Debt Reduction and Financial Stability
One of the most notable findings in the report was Singaporeans’ efforts in reducing debt over the last decade. By the end of 2023, Singapore’s debt ratio stood at 54.1%, a significant improvement that reflects prudent financial management amid rising interest rates.
Future Outlook
As Singapore continues to lead the region in financial assets per capita, the nation’s ability to manage liabilities and navigate economic challenges remains a model for neighboring countries. Allianz noted that Singapore’s robust financial asset growth sets the foundation for sustained wealth accumulation in the future, particularly as household debt remains under control.
For more detailed insights, the Allianz Global Wealth Report 2024 utilized data from Singapore’s Department of Statistics to provide a comprehensive analysis of global wealth trends.
