The strong performance of High Net Worth Individuals in the Asia-Pacific region will see Singapore's overtake Switzerland as the largest global offshore private banking market by 2020, according to new research.
With assets under Management (AuM) of US$550 billion (£360bn) at the end of 2011, new research reveals that Singapore is the fastest growing wealth centre in the world and will be the largest offshore private banking market by 2020.

This reflects the significant disparity in the performance of the HNWI sectors in the Asia-Pacific region and the rest of the world, and suggests a bright future for HNWIs in the region.

In the past decade, Singapore has undergone a radical metamorphosis as a wealth centre, with AuM rising from US$50 billion in 2000 to US$550 billion in 2011. New research released by Timetric suggests that Singapore will benefit from the movement of funds away from Switzerland, Luxembourg and the Caribbean over the next seven years, and by 2020 will be the largest global offshore banking market by AuM.

While the worldwide number of HNWIs declined by 0.3% between 2007 and 2011, the Asia Pacific region experienced a significant growth in HNWIs, increasing by 29% from 2 million to 2.6 million. This was primarily a result of its weathering the storm of the global financial crisis, which had a more substantial negative impact in developed markets.

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HNWI wealth in the Asia Pacific region rose by 30%, from US$8.1 trillion in 2007 to US$10.6 trillion in 2011. Additionally, Ultra High Net Worth Individuals in the Asia-Pacific region also performed well between 2007 and 2011, rising by 31% from 18,210 to over 32,800; this growth is expected to continue, with a rise of 62% - to 38,650 - forecast between 2011 and 2016.

This substantial growth amongst HNWIs and UHNWIs in the Asia-Pacific region will prove a significant factor in the rise to prominence of Singapore as the largest global offshore private banking market, with Asia-Pacific HNWIs being among the largest investors in Singapore, according to Timetric.

Timetric's report is called 'Asian Cities Wealth Book 2012' is available from Timetric.