Asia-Pacific’s population of ultra-high-net-worth individuals (UHNWIs) – those with a net worth of over US$30 million or more including their primary residence – is predicted to grow 33% in the next five years to 2025, faster than the global average of 27%, says a new report.

According to Knight Frank’s latest edition of The Wealth Report, the predicted rise of UHNWIs to 168,567 in Asia-Pacific will largely be led by Indonesia (67%) and India (63%), with New Zealand (52%) and Chinese Mainland (46%) following closely behind.

Over the same period, the number of billionaires and millionaires in Asia-Pacific is set to rise by 46% and 37% respectively.

Asia-Pacific is already home to more billionaires than any other region (36% of the global total), with China being key to this phenomenon (246% forecast growth in the decade to 2025).

By 2025, Asia-Pacific will host almost a quarter of all UHNWIs, which is 17% more than what the region had a decade ago.

The objective of The Wealth Report is to assess how the fortunes of UHNWIs are changing, where they spend time, what they invest in and what they are likely to do next.

From policymakers to investors, a lack of insight into the behaviour and attitudes of the “one-percent” risks a serious misreading of economic trends.”, Knight Frank said in a statement.

Liam Bailey, Global Head of Research at Knight Frank said, “In the middle of a global pandemic and the related economic crisis why should we be interested in the wealthy? Simply put if we are to understand market and asset performance then the wealthy form a central part of the story.”

Asia-Pacific’s foothold as host to the world’s leading wealth hubs continues to strengthen, said Victoria Garrett, Head of Residential, Asia-Pacific at Knight Frank.

“While the COVID-19 pandemic has slowed down the world’s economic momentum, Asia-Pacific’s foothold as host to the world’s leading wealth hubs continues to strengthen. This is due in part to the fact that the region overall was able to respond early and adapt well to the newly emerged trends and opportunities that have arisen.

“Now with vaccines being deployed across the globe, UHNWIs in Asia-Pacific are considerably more bullish on the recovery which can be seen from the forecasted growth in the number of UHNWIs in this region over the next five years.”

“Given the vaccine optimism, most major markets in Asia-Pacific (Australia, Chinese Mainland, Singapore, India, South Korea, and Taiwan) see a larger majority of their respondents (~90%) expecting wealth growth in 2021. It is also worth noting that markets struggling with the outbreak like India, Malaysia and the Philippines are also anticipating wealth growth, showing the strength and confidence in the continued growth of wealth in Asia,” Garrett added.

Looking back at 2020, Knight Frank’s wealth sizing model reveals that the number of UHNWIs globally increased by 2.4%, one-third of the growth rate in 2019, bringing the total to more than 520,000. China saw the largest increase in its UHNW population (9,594 additional UHNWIs) followed by the US (6,080) and Japan (1,199).

Knight Frank’s wealth sizing model projected that the number of UHNWIs in Singapore increased by about 10.2% annually to 3,732. 

“Singapore remains an attractive destination for the globally mobile, and the steps our government took to keep the country safe from the virus and to help businesses and residents financially to weather this catastrophe has elevated its standing among the world’s wealthy and further cemented the country’s traditional safe-haven status,” said Wendy Tang, Group Managing Director, Knight Frank Singapore.

“When coupled with strong and enduring economic fundamentals, stable governance, and an attractively competitive tax regime, Singapore offers a break in the clouds that pushed some of the world’s mega-rich to have a presence here in recent years,” she said.

Knight Frank also reported a rise in the number of salaried employees who now occupy space in the UHNWI list with India taking lead.

Nearly 14 percent of India's ultra-high-net-worth individuals (UHNWIs) are from the salaried employee segment, making it the fourth highest contributor in Asia Pacific for salaried employees in the ultra-wealthy club.

According to the survey, about 56 percent of Indians derive most of their wealth through their own businesses. Those who derive wealth through salaries or receive dividends from their investment portfolio share the second spot, contributing 14 percent each to India's UHNWIs club.

In the Asia Pacific region, Singapore has the highest population of salaried UHNWIs with 31 percent of the ultra-wealthy being employees followed by the Philippines (18 percent), Chinese mainland (16 percent), India (14 percent) and Hong Kong (13 percent).

Globally too, Singapore maintains its lead followed by South Africa (28 percent), Russia (25 percent), Canada (22 percent) and Switzerland (22 percent).

"With India being a key market for most countries, we have seen the presence of most major conglomerates. Significantly, Indians are strong contenders of key executive positions worldwide due to high quality of manpower which is leading to the rise of the salaried segment as UHNWI," said Shishir Baijal, Chairman and Managing Director of Knight Frank India.

The countries which saw the biggest increase in their UHNWI population in 2020