Singapore, Malaysia, Indonesia Rank Top 10 Fastest-Growing UHNW Markets

According to the latest edition of The Wealth Report (Wealth Sizing Model), Knight Frank’s flagship report – Singapore, Malaysia, and Indonesia rank as part of the top 10 fastest-growing UHNW markets, seeing their wealth populations expand between 7% and 9%.

In Asia Pacific, the UHNW population experienced substantial growth of nearly 51% over the five years leading up to 2022. Although growth is forecast to slow to 40% over the next five years (2022-2027), the APAC region still leads the world in wealth creation. 

Dominic Heaton-Watson, Associate Director, International Residential, Knight Frank Property Hub says, “Despite an overall fall in the global UHNWI population in 2022, there are nuances to the storey, and Malaysia was a stand-out performer with significant growth. There may still be a great deal of uncertainty on the horizon, but Malaysian UHNWI’s are set to capitalise on a diverse range of sectors including medical, logistics, tech, hospitality, finance, and real estate.

“Heaton-Watson says local & international residential investment remains a key component of wealth creation & income generation while highlighting that 100 prime residential markets globally saw average price growth of 5.2% and luxury investment assets grow 16% in 2022.

Adrian Yeoh, Executive Director, International Projects, Knight Frank Property Hub, says, “Malaysian High Net Worth Individuals (HNWIs) are attuned to the evolving investment criteria, funding dynamics, and market trends. They prioritise environmental factors, particularly ESG considerations, and exhibit caution amid the widening funding gap, exploring debt funds for refinancing. Capital growth, capital preservation, and income generation are the primary investment objectives for Malaysian HNWIs, with property investments serving as a hedge against inflation and a means of portfolio diversification. Yeoh says some Malaysian HNWIs adopt a prudent approach, aiming to reduce debt volumes in their real estate investments. 

Christine Li, Head of Research at Knight Frank Asia-Pacific, shares, “According to the latest issue of The Wealth Report by Knight Frank, the Asia-Pacific (APAC) population of ultra-high-net-worth individuals (UHNWIs) declined by 5.7% in 2022, after a record climb of 7.5% in 2021. Despite so, 3 out of 10 markets that saw the fastest-growing UHNWIs globally were from Singapore, Indonesia, and Malaysia at 7.0% – 9.0%. Taking the longer view, the wealth story remains compelling as the region will continue to lead the pack in the unending wealth expansion with plenty more opportunities for UHNWs to discover.”

Victoria Garrett, Head of Residential at Knight Frank Asia-Pacific, adds, “While the UHNW population contracted last year, the number of high-net-worth individuals (HNWIs), those with US$1m or more in net assets, expanded by 2.9% to almost 70 million worldwide. The top three countries for HNWIs’ growth were Malaysia, Brazil and Indonesia. Additionally, 100 prime residential markets globally saw average price growth of 5.2% and luxury investment assets grew 16%. The top 10 global locations for forecast growth are dominated by European and Asian economies. The region’s economic growth story will remain urban-centric, and its residential investment landscape will continue to be defined by its prime urban cores. Underpinned by its high rates of urbanisation, investors can look forward to a more sustainable growth trajectory and wealth preservation profile.”

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