13 per cent of the population will become millionaires within the next decade
In the next eight years, the proportion of millionaires in Singapore is expected to increase so much that it will top the list in Asia-Pacific. Following closely behind are Australia, Hong Kong and Taiwan and the proportion of millionaires in the aforementioned countries is expected to come in higher than the US by the end of the decade, according to HSBC in a report. Notably, Asia’s financial wealth has exceeded that of the US since the aftermath of the Global Financial Crisis, HSBC said.
Singapore saw 7.5 per cent of the adult population with a wealth of at least US$1 million (SG$1.38 million) in 2021. It is expecting to see its share of millionaires rise to 9.8 per cent in 2025 and then jump to 13.4 per cent in 2030.
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The HSBC study, titled The Rise Of Asian Wealth, looked at resident populations that comprise citizens and permanent residents.
It also measured the wealth of millionaires using their cash in banks and investment in securities such as stocks and bonds. It also considered real estate holdings such as owner-occupied properties, after deducting outstanding mortgage amounts.
Currently, in Asia, Singapore is second only to Australia whose share of millionaires per population stood at eight per cent in 2021.
It is anticipated by HSBC that Australia will move to second place by 2030 with 12.5 per cent of the nation holding cash and assets of at least a million US dollars.
By that point, 11.1 per cent of Hong Kong’s population will be millionaires while the United States will see nine per cent, 7.2 per cent for Japan and 4.4 per cent for China.
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In Singapore, our share of residents with a wealth of at least US$250,000 will rise to 67 per cent by 2030.
HSBC has also projected that the growth of millionaires in Asia will continue through 2035 to reach 17 per cent in Singapore, 15.1 per cent in Australia and 14.6 per cent in Hong Kong.
The report noted that financial wealth in Asia already began to exceed that in the United States after the 2008 global financial crisis. Following that, Japan accounted for over half of the wealth held in the region in the years after. By 2021 though, China’s share climbed to 46 per cent while Japan’s has since fallen to a quarter.
That said, excluding Japan, Asia’s financial wealth is still lower than that of the US at around US$100 trillion.
If one does not factor in Japan, the number of millionaires in Asia is projected to jump from roughly 30 million currently to over 76 million by the end of the decade, according to Mr Frederic Neumann, HSBC’s chief Asia economist in the report.