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Wealth in Singapore: Sizing the Market Opportunity

Wealth in Singapore: Sizing the Market Opportunity

Summary

Wealth in Singapore: Sizing the Market Opportunity analyzes Singapore's wealth and retail savings and investments markets, with a particular focus on the HNW segment. Analysis is based upon our 2014 Global Wealth Managers Survey, our Global Wealth Markets Analytics, and our Global Retail Investments Analytics.

Synopsis

  • Size your potential client base using our proprietary data, presenting the number of affluent individuals by liquid asset band to 2018.
  • Understand the drivers behind the growth of the affluent market, such as the wider macroeconomic environment and investment preferences.
  • Quantify HNW asset allocations into non-liquid assets such as property. Find out how much of their investible assets are held offshore.
  • Export the graphics from the dashboard, or if you are more at ease using Excel, export the data into your own worksheets.
Reasons To Buy
  • How large is the HNW market in Singapore?
  • What is the penetration of affluent individuals in Singapore?
  • What is the current and future mix of asset class balances in Singapore?
  • How much of their wealth do Singaporean HNW individuals invest offshore?
  • Which booking centers are used by Singaporean individuals to invest offshore?
Key Highlights

Singapore is one of the pre-eminent offshore investment centers of the world, with 77% of the wealth invested in funds sourced from non-residents. However, the onshore market is a major source of assets under management in its own right, with 1.5 million affluent individuals despite the city state's small population.

As a regional trading hub Singapore's growth rates are closely tied to the health of regional powerhouses such as China, India, and Indonesia; however, even with growth slowing in some of these economies, Singapore's wealth market will continue to post rates that are the envy of the developed world.

HNW investors numbered 36,600 individuals in 2014, a tiny proportion of the overall population and well below the levels seen in the US or Switzerland. However, HNW liquid assets are expected to grow by almost 10% a year between 2014 and 2018, rates seen in few other markets.


  • Executive Summary
    • Singapore is a major offshore center as well as an important onshore market
      • Singapore's onshore market is significantly more developed than most Asian markets
      • Key findings
      • Critical success factors
  • Sizing and Forecasting the Singaporean Wealth Market
    • While primarily a major offshore center, Singapore also has a substantial onshore element
      • Offshore investors do not book in Singapore to keep their funds in deposits
      • In contrast, managed funds are dominated by offshore AUM
    • Favorable domestic conditions will drive further expansion in onshore wealth
      • A sizable proportion of Singapore's population will move into the affluent market
      • The bulk of Singapore's onshore wealth is concentrated in the hands of the affluent
      • HNW portfolios above $10m in AUM will experience the highest growth
        • Table Average monthly household income distribution by quintile, 1997/98-2012/13
  • Drivers of Growth in the Singaporean Wealth Market
    • Total retail investments growth moderated in 2014 but should bounce back
      • Growth in retail savings and investments will rise and steady in the coming years
      • Onshore wealth is still largely a deposit game, a stabilizing factor for future savings and investments growth
    • Strengthening local and regional economies will drive asset growth
      • Wealth invested directly in the equity and bond markets has risen, but deposits will have an enduring allure
      • GDP growth is moderating once again and inflation is relatively low
      • The Straits Times Index has struggled to regain its former glory
  • Singaporean HNW Investment Preferences
    • Illiquid investments make up a significant percentage of onshore assets
      • Property holds a long-term attraction for HNW individuals
      • Outside of property there is scope to increase holdings in Singapore, but doing so will be a challenge
    • Offshore investments drain 33% of Singaporean HNW wealth from local institutions
      • Onshore banks need to offer offshore services to capture a greater share of HNW portfolios
      • Tax rates are low and stable in Singapore, making it an attractive destination for foreign wealth
        • Table Personal income tax rates and charges, 2012-16
  • Appendix
    • Abbreviations and acronyms
    • Supplementary data
      • Table Singaporean deposits, split by onshore and offshore ($m), 2006-13
      • Table Singaporean mutual funds, split by onshore and offshore ($m), 2006-13
      • Table Singapore: adult population segmented by affluent category and asset band ($000s), 2008-13
      • Table Singapore: adult population segmented by affluent category and asset band ($000s), 2014e-18f
      • Table Singapore: total liquid wealth segmented by affluent category and asset band ($bn), 2008-13
      • Table Singapore: total liquid wealth segmented by affluent category and asset band ($bn), 2014e-18f
    • Definitions
      • Affluent
      • Bonds
      • Cash
      • Deposits
      • Domicile
      • Double taxation agreement
      • Equities
      • HNW
      • Liquid assets
      • Mutual funds
      • Onshore
      • Residency
      • TIEAs
    • Methodology
      • Verdict Financial's 2014 Global Wealth Managers Survey
      • Verdict Financial's 2013 Global Wealth Managers Survey
      • Global Wealth Model methodology
      • Global Retail Investments Analytics methodology
        • Table Singapore-US dollar exchange rate, December 31, 2014 and December 31, 2012
    • Bibliography
    • Further reading

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