Singapore among preferred destinations for billionaires, with 47 in the country

The Author: Angela Tan, www.straitstimes.com, Dec 06, 2024

Key Points:

• The increasing trend of billionaires relocating to different locations, with many moving to Singapore, Switzerland, the United Arab Emirates, and the United States.
• Singapore's growing appeal as a destination for the ultra-rich, with the number of billionaires in the country increasing from 41 in 2023 to 47 in 2024, with a combined wealth of US$155.5 billion.
• The key factors driving billionaires to move, including a safe environment, political stability, top-notch medical care, and quality education.
• The global shift in wealth distribution, with tech entrepreneurs playing a bigger role as their wealth grew the fastest, while real estate billionaires have lagged.
• The United States remaining the main center for billionaire entrepreneurs worldwide, with their wealth rising by 27.6% from 2015 to US$5.8 trillion in 2024.

SINGAPORE - Billionaires are relocating more frequently, with many moving to Switzerland, Singapore, the United Arab Emirates and the United States, according to private bankers to the wealthy.

In total, billionaires accounting for more than US$400 billion (S$536 billion) have emigrated in the past four years, with the Middle East and Africa region attracting the most billionaire capital.

Singapore is a host to 47 billionaires with a combined wealth of US$155.5 billion, according to the latest UBS Billionaire Ambitions Report released on Dec 5.

This compares with 41 billionaires with a total wealth of US$135.8 billion in 2023, said the report which tracks the wealth of more than 2,500 billionaires globally over the past 10 years.

Around two-thirds of the billionaires in Singapore are self-made, similar to the high rate observed in the Hong Kong market, it added.

The pace of growth is more significant considering Singapore was home to only 17 billionaires with a total wealth of US44.5 billion in 2015.

On an average basis, the wealth of billionaires in Singapore rose 27 percent from US$2.6 billion in 2015 to US$3.3 billion in 2024, UBS said.

Mr Benjamin Cavalli, head of strategic clients at UBS Global Wealth Management, said there are three key driving forces that influence billionaires to move from one place to another: a safe environment and political stability; top-notch medical care; and education.

The Covid-19 pandemic was a wake-up call for many people, including billionaires, leading them to reassess their lives, with homes, families and businesses spread across different places.

"Since 2020, they have relocated more frequentlly, with 176 billionaires having moved from a total population of 2,682 in April 2024. That's one in 15 shifting their domicile," said Mr Cavalli.

Occasionally, changes in a country's tax legislation come into consideration.

Mr Cavalli noted that there has been a sharp increase in the number of billionaires' children over the years.

"In many instances today, their children do not necessarily live in the same jurisdiction as the parents, and that adds additional complexity when we talk about billionaire moves," he said.

Globally, the number of billionaires has risen by more than half since 2015, from 1,757 to 2,682 in 2024, UBS said. Of the 2,682 billionaires, 1,877 were self-made and 805 multi-generational.

Total billionaire wealth grew by 121 percent from US$6.3 trillion to US$14 trillion over the last decade.

The past decade has seen a significant shift in wealth distribution, with tech entrepreneurs playing a bigger role as their wealth grew the fastest, tripling from US$789 billion in 2015 to US$2.4 trillion in 2024.

Entertainment and media billionaires experienced the second-highest percentage growth due to the gaming industry. Financial services billionaires also fared well, supported by rallying financial markets.

On the other hand, real estate billionaires have lagged due to China property malaise, the pandemic impact on commercial property space and the higher interest rates in the US and Europe from 2022.

US billionaires accrued the greatest gains in 2024, reinforcing the country's place as the main centre for billionaire entrepreneurs worldwide, UBS said. Their wealth rose by 27.6 percent from 2015 to US$5.8 trillion in 2024, accounting for more than 40 percent of billionaire wealth worldwide. The number of US billionaires stood at 835.

In Asia-Pacific, the picture was mixed. Chinese billionaires' wealth, including Hong Kong's, fell 16.8 percent from 2015 to US1.8 trillion in 2024, while their number dropped from 588 to 501. This could be due to the weaker Chinese equities market and real estate.

Indian billionaires' wealth increased by 42.1 percent from 2015 to US$905.6 billion in 2024, while their number grew from 153 to 185, lifted by rising equity prices and rapid economic expansion.

Growth in billionaire wealth in Asia-Pacific flattened, increasing by only 1.8 percent from 2015 to US$3.8 trillion in 2024, while the number of billionaires fell from 1,019 to 981.

At 981, the region is still home to the largest number of billionaires, representing almost 40 percent of the world's total billionaire population, said UBS Global Wealth Management APAC co-head Young Jin Yee.

In an earlier report by HSBC, 9 percent of the wealthy business owners from leading global markets said they plan to conduct business in Singapore in the next 12 months, according to a survey conducted from April to May 2024.

Singapore is also the most popular destination for those considering a personal move abroad. The strongest interest came from entrepreneurs in Hong Kong, Taiwan and India.

The Republic is also high on the consideration list for business owners who are considering moving their personal wealth in the next 12 months, HSBC said.

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Source: www.straitstimes.com

Original article: https://www.straitstimes.com/business/banking/singapore-among-preferred-destination-for-billionaires-with-47-in-the-country