Taiwan has more millionaires: study

Taiwan had more wealthy individuals at the end of last year compared with the previous year as a result of high economic growth bolstered by brisk exports and investment, according to a report released Friday by Merrill Lynch.

The World Wealth Report 2005, co-authored by Capgemini, a provider of consulting, technology, outsourcing and local professional services, says the number of people in Taiwan with a high net worth reached 55,400 out of a population of 23 million at the end of last year, an increase of 6.4 percent from the previous year.

Individuals with a high net worth were considered to be those possessing assets worth more than US$1 million, excluding their residential real-estate holdings.

The economic boom, spurred by thriving exports on the back of strong global demand and investment, helped people in Taiwan to pocket more money, the report said.

In addition, overseas investors pumping more capital into the local bourse, low interest rates, the government's loose tax policy aimed at encouraging domestic investment and the New Taiwan dollar's appreciation against the US currency have also helped to produce more millionaires in Taiwan, the report said.

Taiwan saw GDP growth surge to 5.71 percent last year. Exports and imports rose by 15.3 percent and 18.6 percent respectively, according to government statistics.

"The curve of increase in wealthy individuals worldwide in 2004 was the steepest over the past three years, mainly from economic recovery and rising stock market value," James Gorman, Merrill Lynch's executive vice president and head of corporate acquisitions, strategy and research, said in the report.

Among the 68 nations polled for the report, Singapore reported the highest growth rate of 22.4 percent to 48,500 millionaires, followed by Hong Kong with 19 percent, Australia with 14.8 percent and India with 14.6 percent, the report said.

The US, the world's largest economy, had 10 percent more millionaires, while the figure for the EU stood at 4.1 percent, the report said.

Although Japan has the most rich people in Asia, the number of Japanese millionaires grew by only 2.4 percent from the previous year, according to the report.

Stocks made up the largest portion of wealthy people's fortune around the world, sliding to 34 percent from 35 percent in 2003, followed by income from fixed-return investments, which accounted for 27 percent, and cash amounting to 12 percent, the report said.

There may be fewer people on the list by the end of this year, as rising interest rates and inflation will reduce the value of individuals' assets, and therefore the global growth rate in terms of personal wealth is estimated to stay at around 6.5 percent over the next five years, down from 7.3 percent last year, it said.