_Singapore’s population of UHNWIs increased by 6.9% in 2022

Singapore, 22 May 2023 – According to the latest edition of The Wealth Report by Knight Frank, the global population of ultra-high-net-worth individuals (UHNWIs) declined by 3.8% in 2022, after a record climb of 9.3% in 2021. Despite the fall, Singapore’s UHNW population recorded a 6.9% increase to 4,498 in 2022, up from 4,206 in 2021.

Nicholas Keong, Head, Private Office, Knight Frank Singapore shared, “Singapore’s strategic geographical location as the gateway to cities in the Asia-Pacific, as well as the availability of modern infrastructure, a stable pro-business environment and newly-minted rich from pandemic related growth industries and entrepreneurship, has led to a concentration of wealth and a growing ultra-rich population seeking stability in an increasingly uncertain world. The wealth story remains compelling as the region continues drive wealth expansion and opportunities for UHNWIs to discover.”

Highlights

• Singapore is predicted to witness a 17.7% growth in its UHNW population to around 5,300 from 2022 to 2027
• Over the next five years, Knight Frank forecasts that the global UHNW population will expand by 28.5% to almost 744,000 from 579,625 in 2022
• Three of the top 10 fastest growing UHNW markets in Asia were Malaysia, Indonesia and Singapore which saw their wealth populations expand by 7.0 - 9.0%, despite the wider region experiencing a 6.5% decline
• In Asia Pacific, the UHNW population experienced a substantial growth of nearly 51% within the period spanning five years leading up to 2022

Leonard Tay, Head, Research, Knight Frank Singapore shared, “The drop in the total number of UHNWIs globally was largely due to weak performing equities and bond markets. On the flip side, 100 prime residential markets globally saw an average price growth of 5.2% and luxury investment assets grow 16% which helped steady the decline. With the global UHNW population having grown 44% in the five years to 2022, growth can be expected to slow to 28.5% over the next five years, as the region and the world adapts to a new economic environment post-pandemic.”

The breakdown

The Middle East was the standout region with 16.9% growth in UHNWIs (those with US$30m+ in net assets) in 2022. The UAE was the fastest growing country with an 18.1% increase, bringing the number of UHNWIs to 1,116. Saudi Arabia was not far behind with 10.4% annual growth.

Africa also proved resilient with 6.3% growth in UHNWIs whilst, Australasia and the Americas remained largely static with 0.7% and 0.2% growth respectively. Asia’s UHNW population fell by 6.5% yet three of the top 10 highest growth markets were held by Asian countries – Malaysia, Indonesia and Singapore saw their wealth populations expand 7.0-9.0%.

Europe was the hardest hit region with declines of 8.5% in the number of UHNWIs. Four-fifths of the region’s countries experienced a decline in their UHNW population. Of the handful of markets seeing their UHNW population increase were Ireland with 3.9% rise and the wealthy safe haven of Monaco with 0.9% growth.

While the UHNW population contracted last year, the number of HNWIs, those with US$1m or more in net assets, expanded by 2.9% to almost 70 million worldwide. The top three countries for HNWI growth were Malaysia, Brazil, and Indonesia.

The number of billionaires declined by 5% to 2,629 worldwide.

Looking Ahead

Over the next five years, Knight Frank forecasts that the global UHNW population will expand by 28.5% to almost 744,000 from 579,625 in 2022. This expansion marks a slowdown from the 44% growth seen between 2017 and 2022. The number of HNWIs is expected to grow by 56.9% and surpass 100 million over the next five years. The top 10 locations that are forecasted for growth are dominated by European and Asian economies. Hungary is expected to come out top with 75% growth in their HNW population, followed by Turkey (70%) and Poland (67%). However, the US will retain its dominance with the largest global HNW population, which is forecast to increase by 24.6%.

The 1%

Within the latest update of The Wealth Report, Knight Frank has identified the level of net individual wealth it takes to reach the 1% threshold across the world. This varies sharply from country to country but to access ‘the 1%’ falls well short of Knight Frank’s definition of an UHNWI – somebody whose net wealth exceeds US$30m.

Singapore currently has the highest threshold in Asia with US$3.5m required to be in the top 1%, ahead of Hong Kong’s US$3.4m. For the UAE, The Middle East’s highest entry, the level required is US$1.6m and Brazil comes top of Latin American markets with US$430,000 threshold. Even in Monaco, which has the world’s densest population of super-rich individuals, the entry point for the principality’s branch to meet their 1% threshold is US$12.4m. That level is still almost double that of the second place which is held by Switzerland (US$6.6m). Australia sits in the third place with US$5.5m, with New Zealand (US$5.2m) and the US (US$5.1m) in fourth and fifth spots.