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Singapore is a country that consistently ranks among the wealthiest in the world, but how exactly did this island nation accumulate its wealth,
and how does it compare to other rich nations around the world?
Well, we’re going to answer these questions today along with some related questions about Singapore’s economy and why the rich are drawn to the country,
but first a little background.
Let’s take a few minutes to get acquainted with this amazing location before moving on.
Officially, the Republic of Singapore is an independent island nation within the southern tip of Malaysia.
But its landmass actually includes 62 offshore islands which surround the primary island.
Modern Singapore was established by Sir Thomas Raffles in the 19th century for use as a seaport.
With a major influx of immigrants, the city quickly grew. Singapore achieved its independence on August 9, 1965.
Today the nation covers just 280 square miles with a population of over 5.6 million people.
Visitors come from all around the world to see the many picturesque tree-lined streets found in this nation, giving it the nickname of the Garden City.
It’s also known as the city of celebration due to the fact that there is always something to do in Singapore.
But it wasn’t always such a thriving nation. Let’s go back into its history now to find out how it got to be where it is today.
The man largely responsible for the wealth and success of Singapore was Lee Kuan Yew.
Considered the founding father of Singapore, Yew transformed a fledgling nation into an economically rich influence.
However, when they were granted independence in 1965, there were few natural resources at the country’s disposal.
Yet Kuan helped transform the tiny nation on the brink of elimination into a renowned financial center.
With the combination of their very free trade policies and extremely low tariffs, success was bound to materialize.
Singapore flourished as a result of its background as a port of entry and its strong trading activities.
Lee had the vision to transform his small island into a financial giant.
To achieve this success, he led the island nation with an authoritarian grip.
Yew left no room for the practice of financial corruption in any form, and his policies saw billions of dollars pouring into the country.
Their major sectors today are the manufacturing of electronics and machinery, biomedical science, transport engineering, and tourism.
They are also hosted to the second busiest port in the world with hundreds of billions of dollars’ worth of goods exported yearly.
Because their industries are so focused on technology, science, and machinery, they're well-positioned to continue for enjoy a strong economy for years to come.
There are several benefits available to businesses who wish to transfer their operations to Singapore.
Among the benefits which attract enterprises to the island nation are the generous tax liberties, easy access to Asia, and its lax immigration policies.
There are plenty of opportunities for entrepreneurs as well.
One can start their own company in Singapore in only three hours’ time.
Before you even think about that, you should check out our video of the 15 things you should know when starting a business by clicking in the upper right-hand corner.
Individuals tend to migrate to Singapore for varied reasons.
One of the highlights of Singapore is how easy it is to integrate into the ranks of the population.
The normal birth rate in Singapore is exceptionally low, and the constant influx of foreigners into the country helps maintain a balanced population.
English is also a widely spoken language.
Although the cost of living in Singapore may be high, the salaries tend to match the cost.
The higher incomes coupled with the lower income tax rate result in a not so prohibitive cost of living.
However, it should be noted that in Singapore 37 percent of salaries go to the Central Provident Fund or CPF.
This actually takes cash out of the earner’s hands and puts it into their retirement account, which certainly gives more stability to the aging population.
And one of the more enticing advantages to residing in Singapore is the low crime rate.
The state often punishes minor offenses very severely in their efforts to curb crime at all levels.
A minor traffic offense could readily result in a very steep fine.
This policy is a very good deterrent for the criminal actions of all sorts.
Singapore has been listed by the Economist Intelligence Unit as the most expensive place to live out of all the cities around the world for four years in a row.
Therefore, we can easily understand that although Singapore may enjoy a higher standard of living, it is not without its cost.
The current rate of real estate is approximately $3,000 per square foot.
Even with these high costs, Singapore has sold more luxury homes to the incoming foreigners in 2019 than in the 12 previous years.
In one quarter of 2019 alone, 140 luxury homes valued at over $8 million were sold to foreign buyers.
This gives you just a small taste of the wealth that is found in Singapore, but let’s see if we can get an even better idea.
As one of the world’s richest nations, Singapore had an impressive per capita GDP of just over 61,000 US dollars in 2018,
making it the 4th highest in the world behind Qatar, Macau, and Luxembourg.
They are on track in 2019 to move up to the number three rank.
When it comes to the mean wealth per adult in the country, Singapore drops down to 13 with a still impressive $297,000 as the average wealth per adult.
With its steady increase in value, the nation has earned a reputation of being a rich man’s playground.
In 2018 alone, the wealth of the top 50 richest people in Singapore increased by more than 12% for a total of $130 billion.
According to Forbes, Singapore had 22 billionaires in 2018.
The richest among them as of 2019 is Zhang Yong, an entrepreneur who owns 466 restaurants in China, the U.S.,
Japan, South Korea, and Singapore.
His net worth stands at $1.8 billion.
A total of 13 billionaires from the list made their fortune in real estate.
More than half on the list are self-made billionaires, which is a testament to the opportunities found in Singapore.
Despite the high average wealth and the strong GDP, the majority of people living in Singapore do not feel rich.
This is a result of several factors, including the fact that so much is withdrawn from their salaries for retirement and the high cost of living.
You won’t find a car in Singapore for less than $76,000, for example, and even the government-subsidized apartments cost a minimum of one million dollars.
Health care costs are also extremely high and increase at a rate of about 15% per year.
After the CPF contribution is subtracted, the average wage for a Singaporean is only about $33,000.
This number does get a bit skewed because of the significant wage inequality in the country.
So while there are plenty of rich in the country, who are seeing their fortunes increase at a rapid rate,
there is certainly another side of the coin with many struggling just to pay for basic necessities.
So, yes, Singapore is a very wealthy nation, but that wealth is not distributed to a large portion of the population.
Singapore is a small island nation that has come from the verge of bankruptcy to become a super-rich state.
The Republic of Singapore emerged as an independent entity, making its way up the ladder of wealth.
However, Singapore could have some troubling times in the future as growth has slowed down a bit amidst uncertainties in Hong Kong and throughout Asia
as well as complications resulting from the Brexit issues in the UK.
Even so, the rich Singaporeans have proven to be a resilient bunch whose wealth grows significantly year after year.
However, the vast majority of Singaporeans risk being left behind as the cost of living increases as the wages stay largely stagnant.
There is also an aging population in Singapore, so a new generation of workers will need to step up and work even harder to grow the economy.
Time will tell if this small country will be able to continue on its upward trajectory and maintain its status as one of the richest countries in the world.
Having now reached the end of our discussion on Singapore, we're curious Aluxers:
Let us know in the comments.
And, of course, for sticking with us until the end, here's your bonus!
One of Singapore’s most popular attractions is their island of Sanlosa, which is completely covered with amusement parks.
On the island are dozens upon dozens of individual attractions.
These items of interest include a replica of an ancient Mayan city, water theme parks, an aquarium, a butterfly park, an old fort, and a host of other attractions.
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