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SINGAPORE – Singapore added three more billionaires to its bill as Asia remained the world’s richest region, according to a report released on Wednesday (October 7) by UBS and PricewaterhouseCoopers (PwC).
The Asia Pacific region reached a record 831 billionaires, about 38 percent of the total number globally. They represent $ 3.3 trillion (Singapore $ 4.49 trillion) of total wealth, averaging $ 4 billion each.
The UBS / PwC Billionaires knowledge report studied more than 2,000 billionaires from 43 markets around the world. Its annual study period from March 6, 2019 to April 7, 2020, was extended until July 31 of this year to take into account the transformative effect of the Covid-19 pandemic.
Singapore has a total of 25 billionaires: four emerged since the last poll, but one fell from the ranks from April to July this year.
The total wealth of billionaires here grew 11 percent, reaching $ 79.1 billion in April. But from April to July, it bounced 30 percent to $ 102.6 billion.
This trend is in line with a V-shaped rally in world stock markets from April to July that pushed the wealth of billionaires to a new record of $ 10.2 trillion.
Anuj Kagalwala, Partner, Asset and Wealth Management Tax Lead at PwC Singapore, noted that this was because many of the billionaires would have their wealth tied to companies listed on the stock markets.
He also noted that the pandemic has exacerbated the divide between innovators and disruptors in the technology, healthcare and industrial sectors; and the others.
In Asia Pacific, billionaires who can be identified as innovators and disruptors increased their wealth by 23 percent to $ 1.4 trillion, while the wealth of traditional billionaires increased by 13 percent over the same period.
The region also has 181 billionaires in health and technology, which is the highest proportion of the total population of billionaires in these sectors.
[[nid:498726]]Kagalwala said: “It is interesting, but not surprising, that wealth in the tech and healthcare sectors increased at a faster rate than other sectors. In the last decade, the wealth of billionaires in the tech sector grew 5.7 times while the wealth of billionaires in the financial services sector grew 2.3 times.
“One of the observations is that financial services are seen to adopt technology and innovation more slowly than other sectors. Other sectors that have adapted better to technology and innovation, such as industrial, saw wealth grow 3.8 times during the same period. Technology and innovation appears to be a key ingredient for creating wealth. “
A whopping 81 percent of billionaires in Asia Pacific are self-made, he noted, showing that there is a level of opportunity and growth here.
This figure is 98 percent in mainland China, where there was a new record of 415 billionaires despite the pandemic, with a combined wealth of $ 1.7 trillion.
This is a whopping 71 percent increase compared to 2018.
As of early April this year, its wealth had grown nearly nine times over the decade, compared with that of the United States, which doubled.
In addition to increasing wealth, billionaires in the region are also increasingly focused on making an impact on society, the report noted.
Anurag Mahesh, Co-Director of the Asia Pacific global family office at UBS Global Wealth Management, said: “Over the years, we have seen an increase in Asian billionaire families seeking professional advice for tailored integrated banking solutions.
“A growing number of Asian billionaire families have been creating a positive and sustainable impact on society, through philanthropy and sustainable investments.”
From March to June this year, three of the top five markets for pandemic-related contributions are from Asia, he noted.
Globally, the majority of billionaires who give back to society are financial donors who give funds to support foundations. Others may be impact entrepreneurs, such as those investing in vaccine production facilities, or manufacturers, who could turn their manufacturing processes into hand sanitizers or protective gear for healthcare workers, for example.
Mahesh said that this trend in sustainable investment and philanthropy will increase with the transfer of wealth to the younger generation.
She noted that there is also a growing interest among women in such investments.
Women billionaires in the region more than doubled from 26 in 2013 to 68, the fastest growth of any region. More than 60 percent of them are entrepreneurs.
Mr. Kagalwala said: “The data is encouraging. Especially on the philanthropy front, we see more and more families looking to establish charitable foundations to support causes, alongside their family offices.”
This article was first published in The times of the strait.
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