Singapore ranks 6th among world's top hubs for next generation wealth, ahead of Hong Kong

Singapore's concentration of wealth, well-established business networks and growing role as a regional technology and private capital hub are strengthening its appeal for wealth preservation and intergenerational planning, according to Savills' Next Generation Wealth Hubs Index, released last Thursday.

The index assesses more than 100 destinations based 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 $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," says Rayson Yeong, Savills Singapore's head of private wealth, investment sales and capital markets.

A water feature is seen at the Merlion Park along Marina Bay in Singapore, March 26, 2020. Photo by Reuters

Hong Kong provides many of the same advantages as Singapore 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," said the report.

There were several other cities among the global top 30, namely Tokyo (12th), Shanghai (18th), Bangkok (25th) and Kuala Lumpur (29th).

Over in the Asia-Pacific ranking, other Southeast Asian destinations were Thailand's Phuket, Vietnam's Hoi An and Ho Chi Minh City, and Indonesia's Bali.

The report noted that emerging hubs such as Bangkok, Kuala Lumpur and HCMC are becoming increasingly prominent, with improving infrastructure and growing luxury sectors attracting greater investment and residential demand.

Globally, New York topped the ranking, ahead of Miami, London, San Francisco and Los Angeles.

The report said 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, it 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.