No one and nothing is safe from the pandemic. It is the reason why some Singapore-based high net worth investors (HNWI) consider relocating their families.
Lombard Odier reports that more successful Singapore-based high net worth investors are regarding relocation for their family members. It could be either to the Republic or somewhere else than their contemporaries in the country.
According to the Swiss private bank’s report, these investors are likewise the most anxious about overheating stocks. It means that the economy already reached its capacity limits to meet individuals, government, and companies’ demands. The said stocks came from all surveyed regional investors. Over half of them are hoping for a market correction.
Singapore-based high net worth investors assets
Lombard Odier interviewed 620 HNWI across the Philippines, Hong Kong, Thailand, Indonesia, Singapore, Australia, Japan, and Taiwan. It stipulated these wealthy investors as those who have at least US$1 million of investible assets in the country.
The study’s goal is to better grasp HNWIs’ understanding of the present pandemic environment. It also includes the crisis’ effect on their lives and businesses. Additionally, it involves their perspective on the post-pandemic future.
According to Lombard Odier’s survey, some 60% of these Singapore-based high net worth investors thought of their families’ geographical set-up since the pandemic. More than 40% also thought of relocating, the highest rate across the studied markets. It also means that children abroad will return to Singapore to live with their families.
“The trend that we are seeing clearly is that we have quite a number of (investors) in the region relocating to Singapore, with the schemes it has in place and the set-up of family offices. This is a major trend that we’re seeing over the last few years that have been accelerated during this period,” said Vincent Magnenat, Lombard Odier chief executive for Asia.
He also noted that the environment, safety, and hubs’ financial ecosystem are crucial to investors. These financial hub countries include Hong Kong and Singapore.
Waiting for market corrections
Moreover, Singapore-based high net worth investors are among those most worried about overheating equity markets. Some 52% are awaiting corrections.
Over half of the respondents assume that a higher inflation environment is coming. Also, more than half consider changing their portfolio return. Of these, 23% are adjusting it higher, while 28% adjusts it lower.
These are likely investors who want to keep developing their equity exposure. They might be also the ones concerned regarding a market correction based on the Lombard Odier study.
The current environment’s unpredictability enlarges HNWIs’ deflection of views and necessities. Also, they are constantly counting on banks for guidance within individual markets.
Marketing output decline
Meanwhile, the regions’ manufacturing output fell for the first time in September because of the pharmaceuticals segment.
Factory output crumbled to 3.4% year-on-year in September, following a burgeoning, revised 11% in August. It’s the first time the manufacturing output conveyed a decline since October 2020. During that time, the production shrank 4%.
The country’s biomedical manufacturing cluster declined to 35.9% in September. It extends the previous month’s 1.7% plunge.
The medical technology sector increased by 2.4% with continuous export demand for medical devices. The pharmaceuticals segment, on the other hand, decreased to 46.2% because of various produced mixed active pharmaceutical ingredients a year ago.
To sum it up, the general manufacturing cluster shrunk 2.7% in September. It’s because of a decline in printing, tobacco, food, and beverage division.