Singapore skyline at night with Merlion in the foreground
Health and wellness emerge as the top priority for the wealthy in Singapore and Hong Kong, closely followed by the desire for financial freedom.
However, differing views highlight a nuanced outlook, per the newly released WealthLens 2024 study from Affluential, indicating unique perspectives on wealth, priorities and future plans in two of Asia’s most dynamic cities.
For example, Hong Kong high-net-worth individuals (HNWI) are primarily focused on securing a comfortable retirement, driven by a concern for future uncertainties.
On the other hand, Singapore HNWI display a more optimistic approach, focusing on leading a comfortable lifestyle, reflecting a more stable outlook.
Despite access to world-class healthcare in both regions, one-third of respondents expressed a preference to seek specialized medical treatment overseas, the study found.
Notably, in Hong Kong, the fear of covering medical expenses later in life is a major concern.
Affluential, a sister company to Agility Research & Strategy (a Luxury Roundtable research partner), interviewed more than 400 high-net-worth individuals with liquid financial assets exceeding $1 million and 200 very-high-net-worth individuals with liquid financial assets of more than $5 million.
The sample covers a broad spectrum of wealth in both cities, whether gained through building owner-managed businesses, establishing successful careers or inheriting family wealth. The insights strive to offer a clear perspective across gender, age groups and other key demographic criteria.
Health and fitness are key considerations for Singapore and Hong Kong wealthy
Global mobility and aspirations
HNWI in both cities are highly mobile, with 40 percent of Hong Kong and 47 percent of Singaporean HNWI planning to move abroad, either temporarily or permanently.
However, their motivations differ.
Hong Kong respondents are motivated by a desire for an improved quality of life.
Singaporeans seek new cultural experiences and professional development opportunities.
Children’s education also plays a critical role in the lives of the affluent.
More than 60 percent of HNWI in both Singapore and Hong Kong want their children to study overseas, with the United Kingdom and the United States being the most popular destinations.
Hong Kong skyline with Victoria Harbour
Succession planning is top of mind
Succession planning is crucial for the wealthy in both cities, with more than 90 percent of respondents having established plans for passing on their wealth.
Again, preferences on how this is enacted differ.
Hong Kong HNWI favor the use of trusts, Singapore HNWI prefer to transfer their wealth after death.
Approximately 30 percent of respondents expect to receive an inheritance within the next decade, per the Affluential study’s findings.
Singapore’s affluent plan to reinvest this inheritance into expanding business ventures, while their Hong Kong counterparts are more focused on improving their lifestyle and personal development.
Savvy investors focused on tax planning
When it comes to managing wealth, HNWI in both cities exhibit strong investment acumen.
Tax planning is important to more than 90 percent of respondents, with around 45 percent using financial advisors to assist with this process.
Diverse interests and philanthropy
Singaporean and Hong Kong HNWI channel their wealth into a range of passions and interests.
Singaporeans show a particular affinity for technology, while Hong Kong’s HNWI prioritize wealth and wellness.
Around 20 percent of HNWI in both cities contribute to charitable causes, with Singaporeans favoring healthcare-related initiatives and Hong Kongers showing a stronger interest in educational philanthropy.