Number of Asia's rich hits record high as asset values rebound

Report comes as industry players also note wealth transfer between generations

- Chor Khieng Yuit

The number of wealthy people in Asia hit a record high in 2023 while the value of their assets recovered from a dip in 2022, said a report.

Meanwhile, wealth management providers said a wealth transfer is under way in the region as baby boomers move their riches to the younger generation.

Consulting firm Capgemini said in a report on June 5 that Asia's high-net-worth individuals (HNWIS) increased their wealth by 4.2 per cent to US$25.7 trillion (S$34.7 trillion) in 2023. This followed a 2.7 per cent fall to US$24.7 trillion in 2022.

HNWIS are people with investable assets of US$1 million or more. Asset values in 2022 were hit as markets fell, weighed down by concerns over rising interest rates, inflation and geopolitical events such as the Russia-Ukraine war.

The report found that the number of wealthy people in Asia rose 4.8 per cent in 2023 to 7.4 million.

This followed a drop of 2 per cent to 7.1 million in 2022.

The report is based on the views of 3,119 wealthy people, including around 1,300 with assets of over US$30 million, across 26 economies in North America, Europe, Latin America, the Middle East and the Asia-Pacific.

As their wealth recovered in 2023, Asia's rich have turned cautiously optimistic and are starting to shift their focus from capital preservation to growth, Capgemini's report found.

Early 2024 numbers indicate that cash holdings have dropped to 27 per cent of the average Asian HNWI portfolio, down from 31 per cent in 2023. The extra cash is deployed in fixed income, real estate and alternative investments, which include private equity, hedge funds and digital assets.

Ms Yeo Wenxian, head of DBS Treasures Singapore, said the bank has observed similar interest in alternative investments among its clients since 2023.