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Here’s an interesting article I came across during the weekend: according to a Credit Suisse report, the average wealth of Singaporeans is the highest in Asia.

In the report, it states that the average adult has US$276,885 (S$395,000) in wealth, which is 1.4% higher than last year.

“The Global Wealth Report ranked Singapore number 1 in Asia, and when compared to the major economies, Singapore is ranked number 7.”

 

averageSource: Today Online

 

 

This is great news and I’m quite humbled that our tiny nation has managed to achieve this. However, remember that there are two main sources of household assets:

#1: WEALTH FROM FINANCIAL ASSETS

“Financial assets — which include items such as currency, deposits and equities — accounted for more than half of the average wealth per adult in Singapore at US$180,414.”

Wealth from financial assets accounted for >50% of the wealth of a singaporean adult. That means an average Singaporean has $130,000 in cash, foreign currencies, deposits, stocks, and other liquid investments.

Of course, the figure is just an average. I went to Singstat to get a visual of these figures, and here’s what I found: while the growth rates of household assets and liabilities have slowed down dramatically since 2010, net worth continued to climb every single year alongside liabilities!

householdThe growth rate for assets and liabilities slowed down in the past 6 years.
Source: Singstat

I recommend that you click the image above to expand it. Take a look at the details: liabilities have never exceeded assets, but the growth rates have plummeted severely over the past 5 years. It seems that low growth rates in household net worth is going to be the norm.

The average Singaporean has about S$130,000 in financial assets. Cash, stocks, deposits, and foreign currencies included.

That’s a very good figure to have, because most Singaporeans will be able to tide through a 1-2 year period of retrenchment before having to look for sources of income.

What about the statistics on Non-financial assets?

#2: WEALTH FROM NON-FINANCIAL ASSETS

“Non-financial wealth, including assets such as housing, accounted for US$151,239.”

I wanted to find out if this was accurate, and dug deeper to get the data. I decided to do away with Credit Suisse’s claims and check out the figures reported by the statistics department:

householdMost of the wealth is still held in financial assets, rather than in homes.
Source: Singstat

This gives a more accurate figure in my opinion. The data until Q4 2015 reveals that approximately half of every Singaporean adult’s financial wealth came from residential property valuation. The average Singaporean’s wealth in residential property assets could be anywhere from 40-60% of his/her personal wealth.

A casual glance like this might lead you to conclude that Singaporeans are well-protected, wealthy, and financially-savvy.

It is no wonder that even though Singapore has a great number of millionaires as a percentage of population, much of the wealth is held in property. I managed to find statistics on the total assets of Singaporean households, and these are presented in the tables below.

Note: The figures below are in millions of dollars.

householdNot counting CPF & Residential Property, Singaporeans have a lot less liquid assets as a percentage of total assets.
Source: Data from Singstat, Chart generated using MS Excel

In essence, the Singapore as a whole without CPF and Residential Property can be almost 65% poorer on average! That means the true amount of liquid capital that our country commands is much lower than the net worth figures reported. Take note that the data is in millions of dollars and represent the whole nation.

SIDENOTE: DEBT

“The average debt was US$54,768, or 17 per cent of total assets, moderate for a high-wealth country, the report said.”

The average debt was “moderate” for a high-wealth country, and I wanted to understand what this meant. To my pleasant surprise I realized we could actually get the data for our CPF, life insurance, pension funds, shares, liabilities classified by category, and many other statistics from our very own statistics department of Singapore.

excelWith data, in hand, much magic can be performed.
Data Source: Singstat

After downloading their data in XLSX format, I saw that there were several categories for liabilities. They are:

  1. Mortgage loans – to financial institutions
  2. Mortgage loans – to Housing and Development Board (HDB)
  3. Personal loans – motor vehicle
  4. Personal loans – credit cards
  5. Personal loans – education loans, renovation loans, hire purchase loans, loans for investments etc.

After putting them in a pie chart, this is what it looks like:

pieMortgage loans in both categories take up 75% of liabilities Singaporeans have.
Source: Data from Singstat, Chart generated using MS Excel

It was interesting that much of household assets include residential property, while much of household liabilities also include residential property. It’s understandable that most of the loans would be made with financial institutions since HDB has a fixed loan rate, while the FI’s have variable ones (good news for us in a low interest rate environment).

It is remarkable that credit card loans amounted up to almost the same size as motor vehicle loans!

WHAT ABOUT YOU?

The average adult Singaporean has $130,000 of liquid assets, has 75% of liabilities in housing loans, 19% of liabilities in education/renovation/investment loans, and, unsurprisingly, derives most of his/her wealth from CPF and Residential Property.

What does your balance sheet look like? It’s important to review your own finances periodically and see how they have changed over the years.

Perhaps it’s time for a financial health check-up as we round up and conclude the year 2016. Hope you enjoyed plowing through the numbers like I did!

Cheers!

 

REFERENCES & RESEARCH SOURCES:

http://www.todayonline.com/business/singaporeans-average-wealth-increases-us277000-credit-suisse-report
http://www.singstat.gov.sg/statistics/browse-by-theme/household-sector-balance-sheet
http://www.singstat.gov.sg/statistics/visualising-data/storyboards/household-sector-balance-sheet
http://www.tablebuilder.singstat.gov.sg/publicfacing/createDataTable.action?refId=1952

In October, I embarked on a 2-week trip with my sister to Ireland, Iceland and the UK, and it was an amazing trip! 😀

In 2 days, I will be going for another 2-week trip, this time covering Dubai, South Africa and Lesotho. (Yes, this is a country!)

Of course, I will continue trading as I travel, and continue supporting my students and traders. Stay tuned for my market updates!

For those who love adventure and real-time updates, do follow me on Instagram as well: https://www.instagram.com/iamrecneps/ 

 

Here are some photos from my last trip:

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Here is the full photo album for this trip: https://www.facebook.com/iamrecneps/media_set?set=a.10154654785598430.1073741842.530303429&type=3

Good luck, and trade safe! 😀

 

P.S. For my full travel photo log and list of countries travelled, please visit: https://synapsetrading.com/travel-log/

Last weekend, we conducted the very first intake of our newly revamped “Lifestyle Trader Program (LTP)”, where I spent 2 full days imparting professional trading skills to both new and experienced traders, and how they can follow a step-by-step roadmap to building their first pot of gold by spending just 15 minutes a day.

It was an awesome weekend, and I look forward to seeing my next millionaire student! 😀

 

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TRAINING FEEDBACK & TESTIMONIALS:

“Spencer has been helpful and generous in sharing his knowledge of trading by identifying the market types, 4 different setups, and price action, volume time analysis. It has given me confidence to go live on my account the next trading day.” – Johnson Quek

“Very informative!” – Tse Young

Well-structured & organized training. Easy to understand. Nice learning environment & support provided by Spencer/Terence.” – Jonathan Lim

Good detailed explanation of trading concepts & setups. This course definitely helps me understand the basic skills to do any trades.” – Joylene Wang

Very concise and detailed explanation on trading. Good course for beginners.” – Samuel

“It is a good foundation course for beginners to learn more about the different setups for trading.” – Karen Chan

“The course is easy to understand and broken down into simple steps for beginners.” – Karen

“Overall, the tips and knowledge are valuable.” – Jarren

“Both Spencer and Terence are knowledgeable and open to share insights and get learners started on trading. Good job!” – Calynn

“The lesson flow was good, easy to follow with practical insights on trading. Easy to follow. Spencer is very open and willing to help his students to learn. Thanks!.” – Jon

“The training programme is a no-fluff and no-hype one and very practical tools are shared, which will build strong fundamentals in us during trading.” – Chris

 

NEXT INTAKE RESERVATIONS:

The registration for the next intake (Q1 2017) has opened, and you can reserve early to avoid disappointment.
Check availability: https://synapsetrading.com/the-synapse-program/

See you soon! 😀

jonathan-lim

“The course suits beginners to more advance traders, explaining the basics to the simple set ups. Increases confidence to trade live!” – Jonathan Lim

Thank you Jonathan for your kind testimonial, and we wish you all the best for your trading journey!

 

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Would you Like to Start Learning Real Skills & Getting Real Results?

About our training program: https://synapsetrading.com/the-synapse-program/
Training schedule: http://www.xfers.io/item/synapseprogram/ 

To see more testimonials, please visit https://synapsetrading.com/testimonials/
Email enquiries & booking: info@synapsetrading.com, Whatsapp +65 9772 4280

alina

“Spencer is patient and willing to share his strategy and knowledge without holding anything back.” – Alina

Thank you Alina for your kind testimonial, and we wish you all the best for your trading journey!

 

photo-for-testimonial-handout-q3-2016

Would you Like to Start Learning Real Skills & Getting Real Results?

About our training program: https://synapsetrading.com/the-synapse-program/
Training schedule: http://www.xfers.io/item/synapseprogram/ 

To see more testimonials, please visit https://synapsetrading.com/testimonials/
Email enquiries & booking: info@synapsetrading.com, Whatsapp +65 9772 4280