Singapore adults most financially literate in Asia: survey

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#1
Since the article is in public domain, I kept a copy here for future reference. I am surprised with the 73% illiteracy in Asia, and two-thirds globally! Singapore is the highest in Asia, with "only" a 49%. What is the figure for US? I reckon, it should be very close to Singapore...

Singapore adults most financially literate in Asia: survey

HONG KONG - Singapore has the highest percentage of financially literate adults in Asia, a continent where 73 per cent of adults do not adequately understand key monetary ideas, a new study has found.

As many as two-thirds of adults in the world are financially illiterate, according to a survey by ratings agency Standard & Poor's.

In one of the most extensive studies on the topic, S&P conducted interviews with more than 150,000 adults in more than 140 countries who were tested on their knowledge of four basic financial concepts: numeracy, risk diversification, inflation and compound interest (saving and debt).

The agency's Global Financial Literacy Survey (S&P Global FinLit Survey) established regional difference in knowledge between East Asia, South Asia and Southeast Asia, but said that the percentage of financially literate adults across Asia was lower than the global average, the agency said on Wednesday.

The survey defines East Asia as China, Hong Kong SAR, Japan, South Korea, Mongolia and Taiwan.

South Asia comprises Afghanistan, Bangladesh, Bhutan, India, Nepal, Pakistan and Sri Lanka, while Southeast Asia includes Cambodia, Indonesia, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

While Singapore had the highest percentage of financially literate adults at 59 per cent in Asia, while only 18 per cent of Cambodian and Nepalese adults were able to correctly answer the questions on basic financial concepts.

In China, 63 per cent of adults who own a credit card are financially illiterate. Overall, 28 per cent of Chinese adults were financially competent.

Excluding China, 40 per cent of East Asian adults were sufficiently familiar with the financial concepts tested by the survey.

The East Asian results are higher than the global average of financially literate adults (33 per cent), while Southeast Asia's scores were closer the global average at 31 per cent. Less than a quarter of South Asians correctly identified the concepts posed by pollsters, a significantly lower percentage than the global average.

"Understanding concepts like interest, inflation and the importance of savings are at the core of economic development," said Matthew Bosrock, Executive Managing Director and Head of Asia-Pacific for Standard & Poor's Ratings Services. "A lack of basic financial understanding is one of the factors obstructing faster growth in Asia. This survey gives policymakers the tools to identify the gaps in education and also a chance to improve access to financial products."

While the array of financial products available in Asia continues to grow rapidly, S&P's FinLit Survey suggests that most consumers lack a general understanding of credit, compound interest and other key concepts.

The data were collected in 2014 by Gallup as part of the Gallup World Poll and analytical support was provided by researchers at the World Bank and the Global Financial Literacy Excellence Center (GFLEC) at the George Washington University.

rupsk@sph.com.sg
http://www.straitstimes.com/business/sin...sia-survey
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#2
Total Assets of Singaporean Households at June 2015

1) 45.9% in Residential Property Assets
2) 19.9% in Currency & Deposits
3) 16.0% in Central Provident Fund (CPF)
4) 9.5% in Shares & Securities
5) 8.6% in Life Insurance & Pension Funds

Source: Department of Statistics Singapore

From the above figures, investing in the stock Market is still not yet a favorite with Singaporeans.
If half of those money in item 2 were to shift to the Stock Market, the Capitalization in the Stock Market will be doubled.
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#3
(25-06-2016, 09:02 PM)Retired@52 Wrote: Total Assets of Singaporean Households at June 2015

1) 45.9% in Residential Property Assets
2) 19.9% in Currency & Deposits
3) 16.0% in Central Provident Fund (CPF)
4) 9.5% in Shares & Securities
5) 8.6% in Life Insurance & Pension Funds

Source: Department of Statistics Singapore

From the above figures, investing in the stock Market is still not yet a favorite with Singaporeans.
If half of those money in item 2 were to shift to the Stock Market, the Capitalization in the Stock Market will be doubled.

The last figure I have for Singapore, was about 8%, now approaching 10%.

FYI, the last figures I have for HK is about 14%, US is about 26%, and our neighbor Australia, is about 40%.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#4
Item 2 is greater than the sum of item 4 and 5. Tells me two things

1) Singapore households are great in accumulating savings, but terrible wealth growers

2) Banks here have a lot of capital to lend and make net interest income from it, at the expense of giving low interest to savers
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#5
(25-06-2016, 09:02 PM)Retired@52 Wrote: Total Assets of Singaporean Households at June 2015

1) 45.9% in Residential Property Assets
2) 19.9% in Currency & Deposits
3) 16.0% in Central Provident Fund (CPF)
4) 9.5% in Shares & Securities
5) 8.6% in Life Insurance & Pension Funds

Source: Department of Statistics Singapore

From the above figures, investing in the stock Market is still not yet a favorite with Singaporeans.
If half of those money in item 2 were to shift to the Stock Market, the Capitalization in the Stock Market will be doubled.

If they have  no credit card debt and no mortgage debt, then these Singaporeans are truely rich.
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#6
(26-06-2016, 10:56 AM)CY09 Wrote: Item 2 is greater than the sum of item 4 and 5. Tells me two things

1) Singapore households are great in accumulating savings, but terrible wealth growers

2) Banks here have a lot of capital to lend and make net interest income from it, at the expense of giving low interest to savers

Its total assets as at june 2015 or 2016? If really no typo error as in 2015, then spore households are great market timer. They chose to hold cash when STI at june 2015 was trading above 3.2k points.
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#7
Star Capital Research ( Germany ) produce a report in Jan 2016 making forecasts on best returns from different markets during next 10-15 years . The report's conclusion is copied below :

Based on the findings, the long-term equity market potential for various markets was determined using CAPE and price-to-book ratios. Due to the current valuation as of 31st December 2015, investors with a global portfolio can probably achieve real returns of 6.3% over the next 10 to 15 years. Even greater gains can be expected in European equity markets (7.5%) and in the emerging markets (8.9%).

On a country level, Singapore (10.2%), Italy (9.9%) and Norway (9.8%) provide the highest long-term return potential.

If the Singapore is the BEST country share market for long term return during next 10-15 years, which are the shares to buy and hold ??
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#8
DBS/SINGTEL/SGX lah! Big Grin
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 
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#9
(05-08-2016, 06:01 AM)soros Wrote: Star Capital Research ( Germany ) produce a report in Jan 2016 making forecasts on best  returns from different markets during next 10-15 years .  The report's conclusion is copied  below :

Based on the findings, the long-term equity market potential for various markets was determined using CAPE and price-to-book ratios. Due to the current valuation as of 31st December 2015, investors with a global portfolio can probably achieve real returns of 6.3% over the next 10 to 15 years. Even greater gains can be expected in European equity markets (7.5%) and in the emerging markets (8.9%).

On a country level, Singapore (10.2%), Italy  (9.9%)  and  Norway  (9.8%)  provide  the  highest  long-term return potential.

If the Singapore is the BEST country share market  for long term return during  next 10-15  years, which are the shares to buy and hold ??

If not sure, how about STI ETF?
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#10
(05-08-2016, 06:01 AM)soros Wrote: Star Capital Research ( Germany ) produce a report in Jan 2016 making forecasts on best  returns from different markets during next 10-15 years .  The report's conclusion is copied  below :

Based on the findings, the long-term equity market potential for various markets was determined using CAPE and price-to-book ratios. Due to the current valuation as of 31st December 2015, investors with a global portfolio can probably achieve real returns of 6.3% over the next 10 to 15 years. Even greater gains can be expected in European equity markets (7.5%) and in the emerging markets (8.9%).

On a country level, Singapore (10.2%), Italy  (9.9%)  and  Norway  (9.8%)  provide  the  highest  long-term return potential.

If the Singapore is the BEST country share market  for long term return during  next 10-15  years, which are the shares to buy and hold ??

That report was based on the MSCI country indices... So... Buy those indices?
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