Despite immense global market volatility, affluent investors in Singapore are the most optimistic in Asia, according to the Future of Wealth report commissioned by Bloomberg Media.
According to the report, which surveyed more than 600 affluent investors based in Asia Pacific with at least US$150,000 ($201,000) in liquid, investable assets revealed that Singapore investors were strongly positive about their wealth prospects.
Singapore was a standout sample across multiple metrics. For one, almost nine in 10 of the investors surveyed in Singapore (87%) said their net worth had increased in the last three years. This is more than any other market surveyed.
Nearly one half of all Singapore investors sampled believe there is now opportunity for long-term wealth creation despite global volatility — considerably more optimistic than the other markets sampled (37%).
Affluent Singapore investors are also the most optimistic about the changing shape of technology, with 88% surveyed saying their portfolio would benefit from technological advancements. This is compared to 78% of those surveyed in other markets.
Most affluent investors in Singapore feel better prepared for retirement than their counterparts around the region, with 94% saying they are somewhat prepared or extremely well prepared, compared to only 85% in other markets.
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Bloomberg Media global head of data science and insights Michelle Lynn says the optimism of Singapore’s affluent investors was prevalent on many fronts. “A lot of post-pandemic research has shown that people right across the socioeconomic spectrum reflected on quality-of-life issues after 2020.
“What we’re beginning to see in research like this is that, following this prolonged assessment of their life’s priorities, people are more forward-looking about the future and how they’re tackling their goals,” says Lynn.
The affluent Singapore investors stood out as they have gone through this period of reflection and have come out feeling especially confident about their financial foundations as they think about things like long-term wealth, retirement and how to provide for future generations, Lynn adds.
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The survey also finds that affluent investors in Singapore showed an appetite to embrace technology as an assistant in their investment decision-making and embrace digital assets. More than 80% affluent investors in Singapore said they were invested in Bitcoin, while nearly two thirds (62%) think that artificial intelligence-based trading, including robo-advisors, could provide a key benefit in their future investment activities.
More than half (63%) of those surveyed in Singapore — a higher portion than any other market in the region — believe digital assets have immense potential to be a long-term wealth generator and demand aggressive investment.
In addition to the impact of technology on their wealth outlook, around four in 10 Singaporeans said they felt Environmental, Social and Governance (ESG) factors were impacting investment decisions. Around 42% said ESG as a factor was critical or extremely critical to consider while making investment decisions.
