Image Credits: South China Morning Post
Singapore is poised to welcome approximately 3,500 ultra-wealthy individuals in 2024, reinforcing its status as a global wealth hub. According to a report from Henley & Partners, the influx of centi-millionaires underscores a broader trend where Asian cities are outpacing their European counterparts, which are currently experiencing sluggish economic growth. This shift in global wealth dynamics suggests that emerging markets are increasingly becoming the focal points of wealth accumulation, with Singapore emerging as a favored destination for the affluent.
However, the housing market in Singapore faces significant challenges. New home sales are projected to reach their lowest levels since the financial crisis, with only 208 units sold in August 2024—representing a staggering 47% decline from the previous year. This downturn is attributed to a combination of high interest rates, a dearth of new housing projects, and developers’ hesitance to lower prices despite rising home values. Market analysts are revising forecasts downward, indicating an overall decrease in total sales for 2024.
In contrast to the sluggish housing market, Singapore’s electronics industry is thriving. Exports surged by 35.1% in August, marking the fastest growth rate since 2010. This boom is largely driven by robust global demand for semiconductors and media products, highlighting Singapore’s critical role in the tech supply chain and its growing significance amid shifting global trade patterns.
The retail landscape also faces upheaval, with Times Bookstore set to close its last branch in Singapore on September 22. This closure follows a series of similar shut-downs and reflects the broader challenges faced by physical bookstores in an increasingly digital world.
On a positive note, DBS Group Holdings Ltd reported a remarkable 300% growth in semi-liquid fund sales to Greater China investors this year. This increase reflects a shift toward alternative investments, offering liquidity and appealing double-digit returns, which have attracted professional investors seeking to diversify away from equities.
In the realm of hospitality, Singapore’s Raffles Hotel and Capella Singapore have made it onto the World’s 50 Best Hotels list for 2024, reinforcing the city’s reputation for outstanding service and luxury accommodations.
Lastly, in a bid to enhance digital banking security, the Monetary Authority of Singapore, along with major banks, will roll out Singpass Face Verification (SFV) within the next three months. This initiative aims to combat phishing scams by implementing stricter identity verification measures in high-risk scenarios, thereby safeguarding customers’ financial information.