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Ehhh… 1/3rd of Singapore land is still freehold. There is a ton family wealth tied up in plots worth $100M+. And not to mention the government’s encouragement
by refurb 3y ago
Ehhh… 1/3rd of Singapore land is still freehold. There is a ton family wealth tied up in plots worth $100M+.
And not to mention the government’s encouragement of property flipping. They sell public housing below market cost, then intentionally prop up open market values by limiting new public housing. There are a few places where people bought at $400k and after the 5 year lock flipped it for $1M.
99 year lease does free up property for future use, but nobody holds until lease expiration, they sell to extract the wealth, then someone buys the remaining lease at basic the NPV of the current rental rates.
And in addition, Singapore is a fantastic place to transfer wealth generated overseas. Family offices are encouraged to move there, and the rule of law protects that wealth vigorously.
And the capital gains tax is 0%. You can bring in vast sums of wealth and generate 100% tax free earnings through investment.
It’s a pretty sweet place to be rich.
- ethanbond 3y agoTotally. The point isn’t to make someplace a bad place to be rich, nor to prevent richness. The point is to prevent total capture of the economy by the wealthy. The fact that Singapore’s economy has grown so obscenely without the apparently corequisite skyrocketing inequality is pretty remarkable (even if imperfect etc).
- fragmede 3y agoThere are poor people in Singapore. They're better hidden, and a different color, but they're there. There's also no minimum wage, for better or worse.
- cycomanic 3y agoFrom my visits to Singapore I'd say it does have skyrocketing inequality. The inequality is just "exported", i.e. all the poor are not Singaporeans, but largely from Malaysia. Essentially the extremely strict citizenship laws in Singapore make the citizenship itself extremely valuable hence less poverty.
- jhanschoo 3y agoYou really haven't seen much of S'pore if you identify M'sians as the disadvantaged in S'porean society. Global labor arbitrage is a huge component in S'pore's economy, so in addition to importing talent for it's more productive industries, S'pore is an attractive destination for less developed SEA and South Asia regions who arrive on a temporary pass for manual labor or domestic labor for a comparatively low wage that translates to comparatively more back home. A major issue regarding this is these communities' isolation and dependence on their employer during their time in S'pore, with a lack of options or recourse should issues arise. M'sian nationals, especially Malaysian Chinese, to my perception, typically work the same industries as the citizenry, and seem to be favored for permanent residency and citizenship. The citizenship process is a black box, but it is generally observed that Malaysian Chinese are the most likely and fastest to get citizenship, and it is speculated that it is for reasons of cultural affinity and racial quota.
- fragmede 3y agoAre there places where it's not "pretty sweet" to be rich?
- CatWChainsaw 3y agoHaiti maybe?
- fragmede 3y agoYou make a good point. Places like the Congo, where the rich have to live in literal fortresses, with many guards with guns and armored cars, means that while it's still better to be rich than poor, they likely live a less free lifestyle compared to somewhere that's got a Gini coefficient less than 50.