Friday, August 24, 2012

Singapore: Wealthies in 2012 wealth Report


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THEY say if you want to be successful, learn from the people who are successful.  If we want to be a rich and prosperous country, we should take lessons from countries that are prosperous.
The 2012 Wealth Report released by Citibank Private Wealth and Property Consultancy Knight Frank listed  Singapore as the wealthiest nation in the world by gross domestic product per capita measured by purchasing power parity,  beating Norway, the US, Hong Kong and Switzerland and predicted as the wealthiest in 2005 over Hong Kong, Taiwan and South Korea with the US (the only non-Asian nation) sliding back to No. 5.  We can observe from the list that the present top five wealthy nations except for Singapore and Hong Kong are non-Asian but in 2050 the top four are all Asian countries.
And mind you, Singapore will continue to hold its No.1 title up to 2050! Oneevidence is the presence of many millionaires in the country.  The report also predicts that there will be a 67-percent increase in Singapore in the next four years in centa-millionaires.  Centa-millionaires are those super millionaires with over $100 million in disposable wealth.
 
Citi’s List of Global Growth Generators or what they call “3G” countries lists China, India, Bangladesh, Egypt, Indonesia, Iraq, Mongolia, Nigeria, Philippines, Sri Lanka and Vietnam.  Except for China and India (which are included in the so- called BRIC nations together with Brazil and Russia) the rest are “key countries with promising chances for growth that do not necessarily match the traditional assumptions about where future growth will emanate from,” quoting the Report.  Brazil and Russia were not included in the list and the other countries included here aside from India and China are poor countries that can look forward to catch-up with growth though it will take decades.
It is encouraging to see the Philippines as among those countries in the 3G list.   Our economy is one of those who had opened up and had reached, in the words of Citi’s Chief Economist Willem Buiter “the modicum of institutional quality and political stability that are needed for fast growth and rapid catch- up.”  To grow, the Philippines can learn from the wealthiest in emerging markets, The Report shows that they are generating their wealth from natural resources, manufacturing and construction based on a statement made by James Lawson, director at Ledbury Research. As we can see, agriculture is not one of them, the area where our country is mostly focus on. Increase in construction is a by-product of a growing economy—what we should work more is developing our manufacturing sector.
How can Filipinos become millionaires or multimillionaires just like the wealthy in Singapore? The study shows that individuals attain such status through their earnings (which is commonly seen in more developed and established economies).  But those who are really very wealthy, except for those who became rich by inheritance (with assets of $10 million or more) are the entrepreneurs or business owners.  The risk is bigger than just being an employee but the returns if you become successful is tremendous as to catapult a person to being not just a millionaire but a centa- millionaire.  It is easier said than done but anyone can begin somewhere and even if you have not reached the “centa” status, improving oneself not only in terms of financial capacity but developing one’s  character in the area of discipline, good stewardship, fortitude, perseverance that are required of a good entrepreneur are enough reasons to take the risk of entrepreneurship.
What else can we learn from affluent countries such as Singapore? CNN World mentioned an interview in the Wealth Report with the super rich about their “favorite things” (or hobbies?).  Indians responded cars and gadgets, Latin American said traveling and Africans said safaris.  The wealthy in Singapore’s most favored things? “Books and reading materials.” In other words, to be prosperous read more....

(Wilma Miranda is the Chairman of the Publications Committee of Finex, the treasurer of KPS Outsourcing Inc. and a partner of Inventor, Miranda & Associates, CPAs.  The views expressed herein do not necessarily reflect the opinion of these institutions.  Email wilma_517@yahoo for comments).

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