Personal wealth in Asia Pac grows much faster than global average

Personal wealth in Asia Pac grows much faster than global average
By Travis Teo | Posted: 08 October 2010 2344 hrs

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	Video Personal wealth in Asia Pac grows much faster than global average

 
SINGAPORE : Personal wealth in Asia Pacific has grown at a much faster rate compared to the global average.

Wealth in the region grew between 100 and 400 per cent in the last 10 years, compared to the average global rate of 42 per cent, according to the first Global Wealth Report by Credit Suisse released on Friday.

The Credit Suisse report aims to provide insight for investors going into different markets, using a methodology which calculates total wealth by looking at fixed assets and bankable assets, including properties, equities and cash.

Asia Pacific markets have been bullish since recovering from the recent financial crisis. And Credit Suisse says the region's strong economy has led to rising income levels, which means a wealthier population.

Joseph Tan, director & Asian chief economist, Credit Suisse, said: "On a much longer-term structural basis, one key reason why Asian growth ... (is) leading to Asian wealth accumulation is because the demographics are highly favourable for Asia - we have a lot more younger people out here in Asia."

China is one of the countries with the fastest growth in personal wealth. Credit Suisse expects the country to double its current household wealth of US$16.5 trillion by 2015, surpassing Japan's household wealth.

Going forward, total global wealth is projected to grow by 61 per cent to hit an accumulated US$315 trillion by 2015.

Credit Suisse said its wealth report is the first to look at a complete wealth band in each country, ranging from ultra-high net worth individuals to those with wealth below US$10,000.

It is different from other established reports like the Merrill Lynch and Capgemini's report, which analyses only high net worth individuals.

Tee Fong Seng, vice chairman, Private Banking, Asia Pacific, Credit Suisse, said: "Our wealth report focuses holistically from the very bottom wealth bracket all the way to the top.

"We want to see the evolution of the total wealth pattern that prevails in each country to give us a better feel, also for those that use our report."

Within Asia Pacific, Australians are the richest - with an average wealth per individual of nearly US$321,000. This is followed by Singaporeans, with some US$255,000 in individual wealth.

These are the only two Asia Pacific countries that made it to the top 10 list in the study.

- CNA/al

- wong chee tat :)