Singapore's 240,000 millionaires spur spending on luxury brands

Fashion Network

21 hours ago

Singapore covers just 280 square miles, fewer than New York City, and its population of around six million is dwarfed by the likes of Asian megacities like Tokyo and Shanghai. Yet it had the third-largest share of luxury store openings last year among 32 Asia-Pacific cities excluding those in China's mainland, according to data shared with Bloomberg by commercial real estate firm Savills.
That's benefiting places like The Shoppes at Marina Bay Sands, where Italian label Marni opened its first store in August last year. The mall provides services like buggies to drive VIPs around for personalized styling sessions, and is set to launch salons previewing unreleased luxury collections for top clients, said Hazel Chan, senior vice president of retail.
Brands are also ramping up invitation-only sales events — now held several times a week — reflecting a pivot toward ultra-personalized shopping, said Irene Ho, Chief Executive Officer of marketing group The Luxury Network Singapore.
'Singapore has proved to be a very stable place for wealthy people. That has created a very strong local base for the luxury market,' said Jonathan Siboni, founder and CEO of consultancy Luxurynsight. 'Singapore is an oasis in the desert.'
The city-state is a rare bright spot in a luxury market dimmed by China's slowdown. Decades of pro-wealth policies have drawn high-net-worth individuals and built a robust finance sector, making it one of the world's richest countries.
Its strength is reinforced by political stability and rising local affluence. Singapore now reportedly counts over 240,000 millionaires, and median household employment income has risen for five straight years.
With visitors from countries including not just China and the US but Indonesia and India driving tourists' retail spend to S$3.9 billion from January-September 2024 — up 5% year-on-year — Singapore is doubling as both a safe haven and strategic gateway for luxury brands targeting Southeast Asia.
Brands attracted to Singapore's inbound wealth and clients versed in both Western and Asian aesthetics have begun using the market as a 'controlled launchpad' to test retail ideas, said Angelito Perez Tan, Jr., co-founder and CEO of RTG Group Asia, whose businesses include a luxury consultancy.
'These aren't just gimmicks, they're strategic soft launches that test how consumers engage emotionally with the brand,' he said.
Despite its glitz, Singapore remains home to millions of people who aren't millionaires — and its government has been facing a delicate balancing act as it works to narrow the country's wealth gap. Efforts to support the nation's working class hinge partly on raising taxes on the wealthy, but risks driving them away — with some now considering alternative locations like Dubai.
Singapore's banks stepped up scrutiny of wealthy clients last year, following a record S$3 billion money laundering scandal that exposed weaknesses in how banks and brokerages in the country screen their customers.
Still, the probe has only reinforced Singapore's credibility among the rich by proving that it protects wealth, identity and reputation through rule of law, said RTG's Tan.
'It showed that the system works, and that's exactly what matters to legitimate high-net-worth individuals,' he said. 'When there's that kind of trust, spending naturally follows. That trust and validation are key reasons why luxury spending in Singapore has remained relatively steady, even as the broader region cools.'
Spending is flowing across all segments of luxury industry and brands are fighting for attention. Tapestry Inc.'s affordable luxury brand Coach opened its first-ever bar in May, tucked into a Singapore heritage shophouse and serving up customized martinis and New York City-style street snacks.
High-end watchmaker Audemars Piguet Holding SA, meanwhile, opened AP Cafe inside its boutique, offering Swiss-Singaporean dishes incorporating wonton skins and chicken rice alongside couture.
Raffles City mall also entered the luxury beauty game in 2024 with massive pop-ups. This year, 21 brands — including Armani Beauty, YSL Beauty, Chanel, Dior and Gucci — are on the bill.
The upgrades are inspiring Singaporeans like Chloe Liem, 22, an avid collector of jewelry from brands like Richemont SA's Van Cleef & Arpels and Cartier.
'Even though I know luxury items are crazily marked up, I understand I'm paying for the experience and feeling of the brand,' she said. 'I feel confident splurging on these items because I enjoy it.'