Almost one in ten (9%) wealthy business owners from leading global markets say they plan to conduct business in Singapore in the next 12 months, with the number rising to 18% for China and 17% for both India and Taiwan, a report by HSBC found.
HSBC’s global entrepreneurial wealth report 2024, researched 1,798 high net-worth (HNW) business owners with at least $2 million investable assets and ultra-high net worth (UHNW) entrepreneurs with a net worth of more than $100 million across the UK, US, France, Switzerland, China, Hong Kong, Taiwan, Singapore, India and UAE.
The report revealed that Singapore is the most popular destination for those considering a personal move abroad (9%), with the strongest interest from entrepreneurs in Hong Kong (19%), Taiwan (16%) and India (15%).
Singapore is ranked highly on the consideration list for business owners who are considering moving their personal wealth in the next 12 months, with 8% of entrepreneurs surveyed choosing Singapore alongside US, UK and France. This is just behind Switzerland, which 9% of respondents chose.
The report also found that 90% of Singapore’s HNW and UHNW entrepreneurs believe their personal wealth will grow in the next few years and 87% are positive about their business prospects.
Singapore’s business owners were more likely to spend their wealth on investments such as stocks, bond or real estate (62%), rather than arts and collectibles (28%) or precious metals (20%).
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A mere 23% of Singapore’s business owners make charitable donations, the lowest figure among all markets surveyed.
Additionally, 76% of Singapore respondents supported their government’s regulatory regime and 80% agree their society values business owners.
Of the business owners surveyed in Singapore, 70% operate businesses in a single sector and 65% operate a single business. A majority (56%) are first-generation entrepreneurs.
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A whopping 60% of Singapore’s business owners are not currently thinking or planning to exit their business, a significantly higher figure than the global average of 49%.
Looking ahead, more than six in 10 respondents (63%) in Singapore who have started a succession plan expect to pass their business to their family.
While 34% of entrepreneurs in Singapore believe the purpose of wealth is to pass it on to family, 56% have not yet put succession plans in place for their business or started to plan how to pass on their wealth.
Priya Kini, country head of commercial banking HSBC Singapore, notes that “as the business landscape across South and Southeast Asia continues to evolve, Singapore remains a strategic hub for entrepreneurs and high-growth companies looking to access international markets and strengthen their regional presence."
