A study drawing on the opinions of more than 600 affluent investors based predominantly in Asia-Pacific shows intriguing trends emerging from post-pandemic Asia, in new research prepared by Bloomberg Media Group.
Amongst the findings contained within the Future of Wealth report commissioned by Bloomberg Media, affluent investors in Singapore were a more optimistic group than any other group of investors within the markets sampled.
The research surveyed affluent investors from Hong Kong, India, Mainland China and the United Arab Emirates – as well as Singapore – and the findings revealed Singapore investors were strongly positive about their wealth prospects, and more positive than any other group on most measures.
Amongst the survey results, Singapore was a standout sample across multiple metrics:
- Almost nine-in-10 of the investors surveyed in Singapore (87%) said their net worth had increased in the last three years – more than any other market surveyed
- Nearly one half of all Singapore investors sampled (48%) 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 the most optimistic about the changing shape of technology, with nearly nine-in-10 (88%) surveyed saying their portfolio will benefit from technological advancements, compared to 78% in other surveyed markets
- 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
Michelle Lynn, Global Head of Data Science & Insights at Bloomberg Media, said that 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,” Ms Lynn said.
“What stood out about affluent investors in Singapore is that they’ve 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.”
Affluent investors in Singapore also showed an appetite to embrace technology as an assistant in their investment decision-making and to embrace digital assets:
- More than eight-in-10 (81%) affluent investors in Singapore said they were invested in Bitcoin
- Nearly two thirds (62%) of affluent Singapore investors think that AI-based trading, including robo-advisors, could provide a key benefit in their future investment activities
- 63% of affluent Singapore investors – 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
Ms Lynn said the link between an optimistic outlook and embracing new technologies often go hand-in-hand.
“Intuitively it makes sense that investors who are relatively upbeat about their long-term prospects will have less fear of the unknown – often, they can take the plunge on cutting edge investment tools without feeling like it endangers their financial security,” Ms Lynn said.
“Singapore is an especially interesting case-in-point because, as a market, it has shown a willingness to embrace change in the digital and financial sectors. There’s very likely a higher baseline of familiarity with digital assets in Singapore than many other parts of the world.”
In addition to 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.
