Singapore Remains a Top Choice Destination for Nearly 90% of Global Business Owners, HSBC Reports

According to a recent report by HSBC, nearly one in ten (9%) affluent business owners from major global markets plan to conduct business in Singapore within the next 12 months. The figure rises to 18% for China and 17% for both India and Taiwan, indicating strong interest from Asian markets.

HSBC’s Global Entrepreneurial Wealth Report 2024 surveyed 1,798 high net-worth (HNW) and ultra-high net worth (UHNW) business owners, each holding at least $2 million in investable assets or exceeding $100 million in net worth. Participants were drawn from a range of regions, including the UK, the US, France, Switzerland, China, Hong Kong, Taiwan, Singapore, India, and the UAE.

The findings show that Singapore is the most sought-after destination for entrepreneurs considering a personal relocation, with 9% expressing interest in the move. Entrepreneurs from Hong Kong (19%), Taiwan (16%), and India (15%) showed the strongest inclination towards Singapore. Additionally, the city-state is a top choice for business owners contemplating the transfer of personal wealth, with 8% of those surveyed naming Singapore alongside the US, UK, and France. Switzerland led this category slightly ahead, with 9% of respondents favoring it.

The report also highlighted optimism among Singapore’s wealthy entrepreneurs: 90% expect their personal wealth to grow in the coming years, and 87% remain confident about their business outlook. When it comes to investments, 62% of Singapore’s business owners prioritize financial assets such as stocks, bonds, or real estate, while a smaller proportion favors arts and collectibles (28%) or precious metals (20%).

Charitable giving is less common among Singapore’s business elite, with only 23% making donations, the lowest rate among all markets surveyed.

In addition, 76% of Singaporean respondents expressed support for the country’s regulatory framework, and 80% felt that their society values business owners. A significant portion of these entrepreneurs (70%) operate businesses in a single sector, and 65% run just one business. Over half (56%) are first-generation entrepreneurs.

Notably, a considerable 60% of Singapore’s business owners are not currently considering or planning an exit strategy, a figure well above the global average of 49%. For those who have initiated succession planning, 63% expect to pass their business to family members.

Despite a strong emphasis on family wealth transfer, with 34% viewing it as the primary purpose of their assets, 56% have yet to formalize plans for succession or decide how to distribute their wealth.

Priya Kini, HSBC Singapore’s Country Head of Commercial Banking, observed that Singapore’s role as a strategic hub remains pivotal as the business environment across South and Southeast Asia continues to evolve. She noted that the city-state serves as a key destination for entrepreneurs and high-growth companies aiming to tap into international markets and enhance their regional influence.

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