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PR Newswire
23-03-2012, 06:19 PM
Business Times - 23 Mar 2012
Affluent S'poreans upbeat on growing their wealth
More than 60% of Asians see wealth creation prospects improving: survey
By AMANDA EBER
A STANDARD Chartered survey has found that affluent Singaporeans are optimistic about growing their wealth in Asia, despite a dip in overall wealth confidence due to global economic uncertainty.
Some 300 Singaporeans with average annual incomes of US$126,000 were interviewed for Standard Chartered's FuturePriority Report 2012, joining more than 2,700 similarly affluent respondents from across Asia.
Affluent Singaporeans' wealth confidence dropped from 76 per cent in 2011 to 70 per cent in 2012.
However, respondents still maintain a bullish attitude, with 61 per cent of affluent Asians expecting wealth creation prospects in the region to improve over the next 12 months.
This positive sentiment is not confined to Asia alone. One third of respondents see opportunities for wealth creation in Europe and North America in the next 12 months. Respondents also expect improved prospects in the long term across all regions, including Latin America, Africa and the Middle East over the next five years.
However, Singaporeans still err on the side of caution when it comes to investment strategy. Some 37 per cent express a preference for 'simple and safe' banking and investment products, while 32 per cent believe in 'buying low and holding investments.' Only 12 per cent are comfortable with 'more complex investment products,' as compared to 14 per cent for Asia.
Affluent Singaporeans are also less aggressive about growing their money as compared to their Asian counterparts.
Singaporeans aim to grow their current average wealth of US$1.2 million to US$3.6 million over the next 10 years. This is equivalent to a 10 per cent annual return, while Asians demand mean annual returns of 12 per cent.
This difference in attitude is mirrored in the survey's findings on areas the average affluent person spends the most energy on. Singaporeans prize their health over goal-oriented progress, in direct contrast to the rest of Asia.
Said Foo Mee Har, global head of priority and international banking at Standard Chartered Bank: 'The Asian affluent are clearly wealthier and more sophisticated than before.'
As a result, their expectations of financial services have risen as well. Respondents highlighted the ability of financial institutions to meet 'a wide range of needs' as their highest priority when choosing a bank.
Affluent Singaporeans also expect to receive 'financial education and advice' from their financial providers. 'Customers, not banks, are driving the agenda in Asia,' said Ms Foo.
'Therefore, to succeed in this important client segment, banks need to focus more on their service and quality of their advisory processes, rather than on the products they sell.'
Affluent S'poreans upbeat on growing their wealth
More than 60% of Asians see wealth creation prospects improving: survey
By AMANDA EBER
A STANDARD Chartered survey has found that affluent Singaporeans are optimistic about growing their wealth in Asia, despite a dip in overall wealth confidence due to global economic uncertainty.
Some 300 Singaporeans with average annual incomes of US$126,000 were interviewed for Standard Chartered's FuturePriority Report 2012, joining more than 2,700 similarly affluent respondents from across Asia.
Affluent Singaporeans' wealth confidence dropped from 76 per cent in 2011 to 70 per cent in 2012.
However, respondents still maintain a bullish attitude, with 61 per cent of affluent Asians expecting wealth creation prospects in the region to improve over the next 12 months.
This positive sentiment is not confined to Asia alone. One third of respondents see opportunities for wealth creation in Europe and North America in the next 12 months. Respondents also expect improved prospects in the long term across all regions, including Latin America, Africa and the Middle East over the next five years.
However, Singaporeans still err on the side of caution when it comes to investment strategy. Some 37 per cent express a preference for 'simple and safe' banking and investment products, while 32 per cent believe in 'buying low and holding investments.' Only 12 per cent are comfortable with 'more complex investment products,' as compared to 14 per cent for Asia.
Affluent Singaporeans are also less aggressive about growing their money as compared to their Asian counterparts.
Singaporeans aim to grow their current average wealth of US$1.2 million to US$3.6 million over the next 10 years. This is equivalent to a 10 per cent annual return, while Asians demand mean annual returns of 12 per cent.
This difference in attitude is mirrored in the survey's findings on areas the average affluent person spends the most energy on. Singaporeans prize their health over goal-oriented progress, in direct contrast to the rest of Asia.
Said Foo Mee Har, global head of priority and international banking at Standard Chartered Bank: 'The Asian affluent are clearly wealthier and more sophisticated than before.'
As a result, their expectations of financial services have risen as well. Respondents highlighted the ability of financial institutions to meet 'a wide range of needs' as their highest priority when choosing a bank.
Affluent Singaporeans also expect to receive 'financial education and advice' from their financial providers. 'Customers, not banks, are driving the agenda in Asia,' said Ms Foo.
'Therefore, to succeed in this important client segment, banks need to focus more on their service and quality of their advisory processes, rather than on the products they sell.'
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