In 2011, Asia Pacific surpassed Europe and North America to become the largest high-net-worth region in the world. By 2050, Asia is expected to be home to the four wealthiest markets in the world, including Singapore, Hong Kong, Taiwan and South Korea. As the volume of high-net-worth individuals in the region grows, local, regional and even global wealth management institutions are taking notice of this promising opportunity.
Do the math
Let’s take a look at the numbers:
- Wealth is growing at double-digit rates in Asia Pacific, with Indonesia and Thailand leading the pack.
- Asia Pacific is home to more than 3.37 million high-net-worth individuals.
- The average person’s wealth in Hong Kong and Singapore is US$150,000 per head.
- An estimated 17 percent of Singapore’s resident households are millionaires.
- One in every 10,000 Singaporean households is classified as a centa-millionaire—putting Singapore second only to Switzerland in terms of super-wealth per capita.
- By 2015, China’s high-net-worth individuals are expected to hold $8 trillion in assets—or 55 percent of the region’s total wealth.
Now consider that the total value of private wealth in Asia, excluding Japan, is approximately $14 trillion—and only $3 trillion of that is captured by the wealth management industry.
Over the next two weeks, we’ll take a closer look at key factors shaping Asia Pacific’s wealth management industry and explore how firms can build effective operating models for the region. Stay tuned!