As a wealth hub, Singapore is 17 years behind Hong Kong: Report

Singapore is gradually overtaking Hong Kong in the race to become Asia's financial hub. According to an Agency's Intelligence research, it will take the Southeast Asian nation at least 17 years to replace its rival.

Singapore has had a prosperous few years in terms of household finances, with family wealth increasing by an average of 9.2% a year from 2019 to 2021. Based on the Global Wealth Report 2022 released last week by Credit Suisse Group AG, BI analyst Sharnie Wong determined that the rate much exceeds Hong Kong's 2.3%.

The discrepancy indicates how the two centers' fortunes have changed through time: The population of Hong Kong is declining as a result of political unrest and stringent COVID-related restrictions.

Singapore is becoming more and more popular as a prosperous Southeast Asian country and a safe haven for affluent Chinese to shelter their fortunes.

Even still, Singapore's total wealth in 2021 was around half that of Hong Kong, and the average adult's wealth there was $358,204, which was 35% less. According to Wong, if Singapore maintains its five-year compound annual growth rate of 9.6% and Hong Kong maintains its 5.2%, it will take the island at least 17 years to reach breakeven.

Based on statistics from the Boston Consulting Group, Wong predicts that Hong Kong will overtake Switzerland to become the largest cross-border financial center in the world in 2023.

In 2021, non-residents booked $2.3 trillion worth of assets in Hong Kong, compared to $1.5 trillion in Singapore.

Singapore has a competitive advantage in luring clients concerned about Sino-American hostilities and Hong Kong's national security law. However, Beijing is in favor of Hong Kong when it comes to capital transfers to and from the mainland via a developed financial system for the trading of assets like stocks and bonds as well as for wealth management.