Singapore ranks 6th in Savills' global next-generation wealth hubs index
Singapore placed sixth in Savills' Next Generation Wealth Hubs Index, ahead of Hong Kong, which ranked seventh. The index assesses over 100 destinations on business environment, wealth clusters, taxation and lifestyle for individuals under 40 with a net worth of US$5 million or more.
Singapore has been ranked sixth in Savills' Next Generation Wealth Hubs Index, released last Thursday, outperforming Hong Kong, which placed seventh. The index evaluates more than 100 destinations on four metrics: business, governance and connectivity; wealth clusters and the local environment; wealth management and taxation; and lifestyle. It defines next-generation wealth as individuals below the age of 40 with a net worth of US$5 million and above who have recently built or inherited their fortunes.
“Singapore's combination of regional connectivity, established financial infrastructure and access to opportunities across Asia gives it an important role in these capital flows,” said Rayson Yeong, Savills Singapore's head of private wealth, investment sales and capital markets. The report noted that Hong Kong provides many of the same advantages and has seen a growing share of wealthy individuals from mainland China, attracted by its quality of life and accessibility. “It provides low taxation, financial sophistication, safety and connectivity, reinforcing its position as a leading hub for wealth preservation and family offices in Asia,” the report said.
Globally, New York topped the ranking, followed by Miami, London, San Francisco and Los Angeles. Other Asian cities in the global top 30 include Tokyo (12th), Shanghai (18th), Bangkok (25th) and Kuala Lumpur (29th). In the Asia-Pacific ranking, other Southeast Asian destinations that featured were Thailand's Phuket, Vietnam's Hoi An and Ho Chi Minh City, and Indonesia's Bali.
The report highlighted that emerging hubs such as Bangkok, Kuala Lumpur and Ho Chi Minh City are becoming increasingly prominent, with improving infrastructure and growing luxury sectors attracting greater investment and residential demand. An estimated US$84 trillion is forecast to change hands between generations over the next 20 years. As younger generations take control of wealth, they are becoming more global and placing greater weight on lifestyle, education, wellness and personal values when choosing where to live, invest and set up businesses, the report noted.
The wealth landscape in Asia-Pacific is being increasingly influenced by the interaction between new wealth creation and family-led capital planning, the report said. As India and Vietnam continue to create wealth through sectors including technology, manufacturing, financial services and property development, established hubs such as Singapore and Hong Kong are more focused on wealth structuring, private banking, family offices and regional connectivity.
