In recent years, Singapore has emerged as one of the world’s wealthiest cities, drawing attention for its substantial increase in millionaire residents. The city-state’s economic growth has been marked by significant contrasts, as headline figures often obscure key disparities. While luxurious lifestyles and opulent properties are becoming commonplace, not all residents are reaping the benefits of this wealth surge, highlighting a nuanced and complex economic landscape.
Years ago, Singapore’s reputation centered around its efficient operations and favorable business environment. While these aspects have not dramatically altered, the city has increasingly become a magnet for the world’s wealthy, surpassing other Asian hubs like Tokyo and Hong Kong in attracting high-net-worth individuals. Although this has cemented Singapore’s appeal among the affluent, it has inadvertently contributed to rising inequality, a notable shift from its once broadly equitable growth model.
What Drives the Wealth Priapism?
Singapore’s attractiveness to millionaires derives largely from its strategic tax policies, with no levies on capital gains or inheritance, and a top income tax rate of 24% applied only to high earners. Such fiscal policies have led 3,500 millionaires to move to Singapore in 2025 alone.
“Singapore wins that game,” the Singapore Business Federation stated, referring to its tax appeal.
Yet, the societal impact of this wealth influx raises questions about the distribution of economic benefits among its broader population.
Can Public Housing Meet Rising Demands?
For many Singaporeans, the real estate market, especially public housing, reflects broader concerns over wealth distribution. High property costs and limited access to affordable housing strain the social contract promising equity and upward mobility. Build-to-Order (BTO) housing, designed to keep homes within reach of the average citizen, now faces multi-year waiting times.
“BTO flats… are supposed to keep homeownership accessible,” a resident expressed concern.
Such housing hardships starkly contrast with the comfort of the elite who easily navigate the real estate landscape.
Singapore’s commitment to inclusivity and equality is tested amid thriving wealth. Domestic views suggest concerns about the city’s long-term social equity, as local professionals and families struggle to afford homes, an issue not prominent in earlier years. This has sparked dialogue on the sustainability of relying on wealthy migrants as an economic engine and its implications for residents experiencing economic strain.
The city-state also faces broader economic challenges, as indicated by a recent 2025 Singapore Business Federation survey. An alarming 40% of businesses anticipate a worsening economy, doubling past figures. Business capital constraints add another layer of complexity to the narrative of prosperity that surrounds Singapore’s global financial standing.
While Singapore’s appeal to the wealthy is undeniable, its growth model may need recalibration to ensure it serves all its citizens. Addressing disparities in wealth accumulations remains crucial. A reassessment of policies that drive both economic development and equitable distribution will be vital in maintaining social harmony and economic stability moving forward.
Singapore’s economic success has highlighted disparities between the affluent and average citizens. As millionaires flock to the city, there’s a growing disconnect felt by locals struggling with high living costs. Sustainable solutions are needed to balance wealth accumulation with equitable growth, ensuring broader societal benefit without diluting its economic appeal.
