Hongkong — According to the ninth UBS Billionaire Ambitions Report, the number of Asia Pacific billionaires increased from 922 to 1,019, while their total wealth increased by 8.1% to USD 3.7 trillion. There is a broadening of wealth across the region, as markets with smaller numbers of billionaires such as Indonesia, the Philippines, Singapore and Taiwan saw wealth increase by almost a third. Asia Pacific is also the region with the highest new self-made billionaires at 81.4% across the globe.
UBS, one among top global wealth manager, has just announced the ninth UBS Billionaire Ambitions report, which surveyed for the second time UBS billionaire clients around the world on the unique challenges and opportunities they face as stewards of great wealth.
Billionaires surveyed in Asia Pacific had a home bias, with 50% viewing the region as the greatest opportunity for returns over the next 12 months. Forty-four percent of billionaires plan to increase their exposure to developed market bonds over the next 12 months, closely followed by cash (39%), potentially seeking a haven amidst concerns of geopolitical tension (53%). AI is the technology offering the biggest commercial opportunity for the operating business (57%) and in portfolios (71%) over the next 12 months. Fifty-nine percent see new technologies disrupting or destroying the existing operating model of their business as the biggest risk.
Globally, according to the UBS report, billionaire wealth partially recovered in the 2022/2023 period, lifted by billionaires with consumer and retail businesses in Europe, after falling by almost a fifth in the previous 12 months. Overall, the number of billionaires rose by 7% globally in the last year, increasing from 2,376 to 2,5442 and their wealth recovered by 9%, from USD 11.0 trillion to USD 12.0 trillion.
While billionaires with innovative companies in technology and healthcare have accumulated the greatest wealth over the past decade, there are early signs of improving fortunes (+15%) for billionaires with industrials companies, which will likely continue amid the energy transition and higher defence spending in several countries.
“This year’s report found that the majority of billionaires that accumulated wealth in the last year, did so through inheritance as opposed to entrepreneurship. This is a theme we expect to see more of over the next 20 years, as more than 1,000 billionaires pass an estimated USD 5.2 trillion to their children,” said Benjamin Cavalli, Head of Strategic Clients at UBS Global Wealth Management.
“The next generation has fresh views about business, investing, and philanthropy, redirecting large pools of private wealth to new business opportunities arising from the times we live in. Engineering a smooth succession will require founders and their families to do things differently, more than ever discovering common values and purpose to navigate a way forward that appeases all generations and allows them to continue building their legacies,” Cavalli added.
Amy Lo, Chairman, UBS Global Wealth Management Asia, Co-Head UBS Global Wealth Management APAC, noted that “It is exciting to see that APAC minted the most new billionaires during the period among all regions, with a total of 85 new billionaires from Mainland China and Hong Kong in particular. The number of billionaires also grew 11.3% and 13.3% in Mainland China and Hong Kong respectively, and almost all billionaires (98%) in Mainland China are self-made. The great wealth transfer among billionaires and wealthy families has also started to show great momentum, highlighting the importance of finding consensus between generations on family legacies.
Billionaires in APAC are increasingly seeking effective family strategies and bespoke succession planning advice to build family connections and foster the exchange of values and experience between generations. Yet no family is the same, so we will continue to work closely with our clients along the journey to achieve their family and business goals.”
Young Jin Yee, Co-Head UBS Global Wealth Management APAC, shared that “APAC continues to have the highest number of billionaires and highest proportion of self-made billionaires in the world. The number of billionaires in the region increased from 922 to 1019, while their total wealth increased by 8.1% to USD 3.7 trillion. This growth is reflected in all markets including Southeast Asia, Japan and India.
Singapore’s billionaires’ wealth increased by almost a third. Today, three out of five billionaires in APAC have a relationship with UBS as we continue to be the house bank for Asian wealthy families. As we anticipate USD 5.2 trillion of wealth handover in the next few decades, we work closely with families and businesses to harmonize the priorities and interests across different generations, to ensure smooth succession planning in one of the greatest wealth transfers.”
After a surge in entrepreneurial activity over the last few decades, this year’s report found that many billionaires are passing their wealth on to the next generation and for the first time in nine editions of this report, the next generation of billionaires accumulated more wealth through inheritance than entrepreneurship. A total of USD 150.8 billion was inherited by 53 heirs over the last year, exceeding the 84 new self-made billionaires’ total of USD 140.7 billion.
As the great wealth transfer progresses, each generation has their own view on legacy. Sixty-eight percent of billionaires surveyed with inherited wealth, said that they aim to continue and grow what their parents achieved in terms of business, brand, or assets. Believing in continuing the current family legacy, 60% of heirs want to enable future generations to benefit from their wealth and plan to continue to follow their parents pre-defined philanthropic goals (32%). (GT)
