Singapore Wealth Management – High Net Worth (HNW) Investors
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Singapore Wealth Management Report Overview
Singapore is one of the most developed economies in the region and is home to several conglomerates and technology giants. Men continue to dominate Singapore’s HNW population, accounting for more than 83% share. However, this trend is expected to shift gradually as more women take up prominent roles in leading corporations and pursue entrepreneurial ventures. The vast majority of HNW individuals in Singapore have accumulated their wealth either through earned income or entrepreneurship. Furthermore, financial services and healthcare are major contributors to HNW’s wealth.
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The Singapore wealth management report sizes the opportunity within Singapore’s wealth market and analyzes the investment preferences, service requirements, and portfolio allocations of its HNW investors. The report is based on GlobalData’s annual Global Wealth Managers Survey.
| Key Investment Preferences |
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| Key Reasons for Expatriation |
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| Key Asset Allocation Classes |
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Singapore Wealth Management Market - Investment Preferences
The key investment preferences in the Singapore wealth management market are advisory asset management, automated investment services, discretionary asset management, and execution-only asset management. The importance of a varied approach is demonstrated by the high demand levels across all types of asset management services. Automated investment services/robo-advisors have strong current demand, followed by execution-only mandates.
Survey results indicate that demand for automated services will also grow at a high rate. Singapore’s strength as a wealth management hub and rapid strides in technology innovation and adoption have transformed the city-state into a hotbed for the launch and growth of robo-advisory services.
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Singapore Wealth Management Market - Reasons for Expatriation of HNW Investors
The drivers of expatriation to the US are tax efficiencies, job transfers, better lifestyle conditions, better opportunities for your client’s children, and business start-ups among others. Tax efficiency is the leading factor driving expatriation to Singapore. Singapore’s perceived status as a tax haven is a key attraction for HNW expats. The city-state has low taxes, offers several tax incentives for foreign investors, and levies no tax on capital gains, gifts, or estate duties. This means wealth managers should have the necessary expertise to inform their clients about local tax systems as well as local investment opportunities and restrictions.
Singapore Wealth Management Market Analysis by Reasons for Expatriation
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Singapore Wealth Management Market - Asset Allocation Classes
The major asset allocation classes for HNW investors in the Singapore wealth management market include equity, bonds, cash and near-cash, real estate, commodities, and alternatives. Equities accounted for the highest Singapore wealth management market share, while alternatives are set to witness the second-highest growth. Singapore’s equity market is one of the most developed and sophisticated in the world, so it is unsurprising the city-state’s investors have significant exposure to this asset class.
Singapore Wealth Management Market by Asset Allocation Classes
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Key Highlights
- Expats constitute more than 21% of the local HNW population. They represent an attractive target market thanks to their more complex service requirements.
- The market for robo-advisory services is growing, with multiple wealth managers entering the space.
- Property, equities, and cash and near-cash investments dominate the Singaporean HNW portfolio.
Reasons to Buy
- Understand Singapore’s HNW wealth market, including the investment preferences of HNW individuals.
- Develop and enhance your client targeting strategies using our data on HNW demographics and sources of wealth.
- Tailor your investment product portfolio to match current and future demand for different asset classes among HNW individuals.
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Table of Contents
Frequently asked questions
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Which are the key investment preferences in the Singapore wealth management market?
The key investment preferences in the Singapore wealth management market are advisory asset management, automated investment services, discretionary asset management, and execution-only asset management.
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Which is the leading reason for the expatriation of HNW investors in the Singapore wealth management market?
Tax efficiency is the leading reason for the expatriation of HNW investors in the Singapore wealth management market.
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Which is the leading asset class for HNW investors in the Singapore wealth management market?
Equities accounted for the highest asset class for HNW investors in the Singapore wealth management market.
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