While the COVID-19 pandemic has significantly disrupted the economies around the world, there is a section of the society that has seen a record rise in their wealth during this time. We are talking about the super-rich segment of the population whose wealth has increased exponentially during this period.
According to The Wealth Report 2022 by Knight Frank, the global population of Ultra High Net Worth Individuals (UHNWIs) increased by 9.3% in 2021. These are the individuals having net assets of US $ 30 million (SG $ 40.7 million) or more.
In Singapore alone, the population of ultra high net worth individuals grew by 8.6% to 4206 in 2021 which is up from 3874 in the year 2020.
Another report by Knight Frank indicates that Singapore’s population of ultra high net worth individuals is expected to increase by almost 300% by 2026.
In fact, this has also been affirmed by Forbes List of Singapore’s Richest in 2021 which states that the consolidated net worth of Singapore’s 50 most affluent individuals rose to the US $ 208 billion in 2021 which is a whopping 25% increase compared to last year.
Not just Singapore, entire Asia is seeing a hike in the ultra-wealthy population. In 2021, Asia witnessed a 7.2% hike in ultra-wealthy population. Furthermore, Asia is anticipated to surpass Europe as the second-largest wealth hub by 2026.
HNWI Migration Trends in 2022
The 2022 Henley Global Citizens Report, which tracks global private wealth and investment migration trends states that Asia’s prime hub of affluence – Singapore continues to attract millionaires from other parts of Asia and across the globe with an expected net inflow of 2800 HNWIs this year. This is close to an 87% increase compared to 2019’s figure of 1500.
At present, among the top 10 countries with the highest inflow of high net worth individuals, Singapore ranks at 3rd position, after the UAE and Australia.
It is anticipated that Singapore’s high net worth population can grow by 3.4% in 2022. This also means, that nearly a quarter of the Singapore population will be represented by wealthy individuals.
It is highly likely that Singapore being the biggest wealth management centre in Asia, it will continue to attract many more ultra wealthy individuals to relocate to the island nation in the near future.
Why are Rich Migrating to Singapore?
The top drawing factors for ultra rich individuals to migrate to Singapore are political stability, economic stability, a plethora of business-friendly incentives, tax efficiencies, modern infrastructure, a pro-business environment, a strong legal system, a higher standard of living and an advanced healthcare system, among others.
Besides, Singapore’s strategic geographical location acts as the gateway to cities in the Asia-Pacific making it an even more attractive destination for many. This has also led to a concentration of wealth and a growing ultra rich population in Singapore.
As a result, more and more people are keen to explore the abundant opportunities present in this island country.
Singapore is also the first preference for several HNIs in other parts of Asia as they provide a reliable infrastructure for wealth preservation. Furthermore, Singapore is a preferred choice for digital entrepreneurs and family offices owing to its easy access to world-class financial advisors.
How Will This Impact Businesses?
With a high concentration of HNWIs in Singapore, there will be strong growth in the overall economy.
Some of the fastest growing sectors in Singapore in 2022 include banking & finance, Software & Technology, Healthcare, manufacturing, Artificial Intelligence, Data Science & Analytics, Biomedical & Biotechnology, Mental health, Tourism & Hospitality, and Digital & Internet Marketing.
Owing to the tremendous growth, company formation in Singapore is on a rise.
Thinking how to register a company in Singapore? Reach out to us for a free consultation on Singapore company formation or to start your own single family office in Singapore.
