The wealthy are attracted to Singapore for its location, low taxes, clean environment and low crime

Everyone knows Asia is where the growth is. We hear a lot from the mainstream media about China and India. There’s certainly money to be made in these places. But these are crowded trades… They’re big, chaotic and, for the most part, poor.

I have my eye on a different kind of Asia. One that is small, stable and rich. The local currency makes a relatively safe bet. Plus, this place is full of wealthy people with money to spend. According to a recent study by Boston Consulting Group, it has the highest share of millionaire households in the world, at 11.4%.

I’m talking about Singapore. This is where wealthy people are putting their money. I’m going to tell you how to put your money there, too. But first, a bit of background.

Singapore has rare deepwater ports in the middle of the busiest shipping lanes in the world. In fact, Singapore handles more sea-bound freight than anywhere else—even Shanghai.

The infrastructure is excellent. Roads, trains, bridges, sidewalks, the airport—you name it. And the country is definitely “connected.” The 4.7 million people who live there have 3.4 million Internet connections. They also have 6.4 million mobile phones; that’s 1.4 each.

Singaporean Gross Domestic Product per person is the eighth highest in the world, at $50,300. (The U.S. is in 11th place with a GDP per person of $46,400.)

The wealthy are attracted to Singapore for its location, low taxes, clean environment and low crime; that’s why there are so many rich Chinese and Indians living there. Singapore also attracts the global wealthy, such as hedge fund managers who need a base in Asia.

With the lowest rate of personal income tax—just 20%—who can blame them?

Businesses like the place as well. The workforce is well educated and corporate income tax was recently lowered to just 17%. Even with the global economic problems, unemployment is only 3%.

The country itself is rich as well. First, it has low external debt—that is, money owed to people overseas. Foreign exchange reserves (the country’s rainy-day piggy bank) work out to $40,000 for every Singaporean man, woman and child.

Last year, Singapore’s current account balance—the net money coming into or going out of the economy—was a surplus of over $26 billion. That was more than Saudi Arabia, the world’s biggest oil exporter.

That surplus makes Singapore the exact opposite of the U.S. in terms of financial balances. The U.S. borrows to spend; Singapore attracts cash.

One hedge-fund trader I know describes the Singapore dollar as an “Asian version of the Swiss franc.” That means it’s a safe haven. A place people put money when the world looks risky.

So how do you invest there? I explain one way I’m keen on right now in the current issue of IL magazine. If you subscribe now with this link, you can get a subscription for just $17…and instant access to the August issue—including my full Singapore article.