Published March 13, 2009

Billionaires' net worth tumbles; Asia-Pac tycoons fare worse

By UMA SHANKARI

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(SINGAPORE) The world's richest people have got poorer - just like the rest of us. The number of billionaires in Forbes magazine's annual ranking has plunged 30 per cent.

The world has just 793 billionaires now, down from 1,125 a year ago. And their average net worth is US$3 billion - a drop of 23 per cent in the past 12 months.

Singapore has only two billionaires now - property tycoon Ng Teng Fong and veteran banker Wee Cho Yaw - down from five in 2008.

Worldwide, Microsoft chairman Bill Gates has regained the top spot, even though he lost US$18 billion which dragged his net worth down to US$40 billion.

World runner-up Warren Buffett - last year's No. 1 - saw his wealth plummet US$25 billion to US$37 billion, as shares of his Berkshire Hathaway investment company sank almost 50 per cent in the past 12 months.

Mexican telecom titan Carlos Slim Helu also lost US$25 billion, and dropped one spot to No. 3 worldwide.

In Singapore, Far East Organization's Mr Ng and UOB's Mr Wee have seen their net worth fall significantly. Mr Ng and his family are now worth US$5.5 billion, down from US$7 billion a year ago. Likewise, Mr Wee and his family have seen their net worth shrink to US$1.9 billion, from US$2.9 billion.

Three locals failed to make the cut this year - Yanlord Land chief Zhong Sheng Jian, palm oil giant Wilmar International's chief Kuok Khoon Hong and investor Peter Lim.

The carnage spared few billionaires, regardless of whether their source of wealth is stocks, commodities, real estate or technology. But those with ties to Wall Street were hit particularly hard. Worldwide, 80 of the 355 people who dropped off the list this year had fortunes derived from finance or investments.

Former American International Group head Maurice Greenberg saw his US$1.9 billion fortune virtually wiped out after the insurance giant was bailed out by the US government. Today he is worth less than US$100 million. Former Citigroup chairman Sandy Weill has also said goodbye to the billionaires' club.

Last year, there were 39 American billionaire hedge fund managers - this year there are 28. And 12 American private equity tycoons have lost their billionaire status.

Compared with overall numbers, billionaires in Asia Pacific fared worse. The number of billionaires in the region fell 38 per cent to 130. And the combined net worth of Asian billionaires plunged 55 per cent to US$357 billion.

The richest person in Asia - and the seventh richest worldwide - is India's Mukesh Ambani, who heads Reliance Industries. His net worth has fallen US$23.5 billion to US$19.5 billion. But that still puts him ahead of last year's richest Asian Lakshmi Mittal, who lost US$25.7 billion to come in eighth this year with US$19.3 billion.

The third-richest Asian billionaire is Hong Kong's Li Ka-shing, who heads Cheung Kong Holdings and Hutchison Whampoa. He is ranked 16th this year, down from 11th last year, and is more than US$10 billion poorer with US$16.2 billion.

The year's biggest loser in dollar terms is India's Anil Ambani, head of Reliance Communications. His net worth sank a staggering US$31.9 billion to US$10.1 billion, and he dropped from sixth place to 34th on the list.