Singapore to Become the World’s Richest Country?

Currently holding 4th place after Qatar and Luxembourg, Singapore is seen as the richest country in the world by 2025, a study by Citibank and real estate consultant Knight Frank reports.

According to the report, Singapore is already the top GDP per capita champ with a figure of more than $56,000. Singapore was the richest country per capita in the world in 2010. An island country made of 63 islands has a diverse population of Chinese, Malays and Indians, altogether 5 million people.

The answer to Singapore’s success might the simplest kind. Concluding interviews with people with more than 25 million dollars in investable assets, Citibank asked among other things, what they prefer to spend their money on, when the rich from India chose cars, Latin-Americans traveling and Africans safari, Singaporeans preferred books and other readable material.

By 2050, Singapore is expected to top the chart GDP per capita of $137,710. Despite the economic burn-down the number of centa-millionaires has increased by 29% since 2006 and is forecast to rise even further.

Surprisingly, the report didn’t see Qatar and Luxembourg in the list, instead Hong Kong and Taiwan are predicted to move up to take the second and third places.

China will continue to grow

China is expected to open its economy, currency and markets plus it also has a well-educated and strong labour force. Democracy, human rights and freedom of speech have been improving for some time now and I believe will continue to do so.

China is making its way to the modern world. So far Chinese real estate market was controlled by the government yet capitalism is on the rise – an unusual mix of private and state control is creating something of a “planned market” for housing. Investors are still focusing on commercial property markets and also to the prime residential market in Hong Kong. Mainland Chinese buyers now make up 25% of prime market purchases in Hong Kong, where prime apartment prices rose by a further 4.6% in 2011, compounding the 60% growth seen since the beginning of 2009.

Not surprisingly, Australia has been attracting foreign private money. Memocorp, the Australian vehicle of Singapore billionaire Tay Tee Peng, paid AU$395m for 259 George Street in Sydney. South African investor Nathan Kirsh, who has also been active in London, bought 4 and 14 Martin Place for AU$153m.

“If China continues to grow and commodity demand remains, there is a growth story for property in Australia. We are upbeat on prospects for cities like Perth and Brisbane that have strong links to the mineral and mining industries,” says Stephen Ellis, Executive Chairman of Knight Frank Australia.

Yet the 2011 Chinese property crash has brought price falls in Singapore, Sydney and Shanghai – tellingly among the fastest growers in last year’s PIRI survey – confirm the unravelling of speculative price booms in Asia Pacific.

There is more to worry about than just the economy

A philanthropist John Caudwell concludes the report with some fundamental thoughts. According to him even if the current crisis will be solved, the ecological crisis, water shortage and climate warming, is still escalating and a vast number of people will have to relocate. “A renewable energy revolution is needed to replace 80% of the world’s fossil fuel requirements by the year 2020 in order for the world to stand a good chance of surviving in its current state. I know that this can be achieved; I just don’t know whether the world is sufficiently motivated to make it happen quickly enough,” he says.

The report can be seen here: http://www.thewealthreport.net/

Tagged richest countries, Singapore, survey