Drawing from 1,000 global expatriates and domestic high net worth investors across Singapore and Hong Kong, the latest Investor Attitudes survey suggests that affluent and aspiring affluent investors in Singapore and Hong Kong are uncertain about the current investment climate.
This correlates with the recent slide in the stockmarket with share prices plummeting more than 2% in the UK, Germany and France following a sell-off in both Asia and Wall Street overnight.
Lowest score
FPI said the drop from 13 in Singapore’s first quarter index score to 11 in the third quarter – which is the lowest score since its inception in Singapore – marks a continuing cautious approach towards investment.
This differs from Hong Kong, which has maintained its index score of 15 and maintained positive sentiment towards property investment.
The report – which was released today – also indicates the investment appetite of those who are “globally mobile” is significantly greater when compared to those who have not lived outside of their home country in the last five years.
“Emerging trend”
Executive chairman at FPI John Van Der Wielen said: “The statistics from our latest survey reconfirms the belief that global mobility is an emerging trend in the region, with more than half of those surveyed actively traveling and living abroad.
“Singapore and Hong Kong are important financial hubs in Asia, and as such, the investor pool here is increasingly mobile, in addition to being mature and financially savvy.”
“Complicated”
Over half of investors living outside of their home country were said to describe the process of setting up a financial plan as “complicated”, particularly for those wishing to set up an education plan for their children.
Despite some Singapore respondents wanting face-to-face support and thus choosing to switch from their home country’s provider to one in their host country, more than half of those respondents from Singapore chose to stick with their banks (64%), insurance providers (60%) and financial advisers (59%).
Exceeded expectations
The fifth edition of the report also indicates that 72% of those who kept relationships with their existing banks and financial advisers found that digital accessibility had exceeded their expectations, and was key to their planning overseas.
The increase in people living overseas has also created a trend in people using technology – such as the internet – to find information to help plan their finances.
Of those Singaporeans who had lived abroad for six months, 38% considered retiring back in their home country, with the majority choosing to retire in other countries for a better quality of life and lower cost of living.
Executive in residence and Adjunct professor, QUT Business School, Noel Whittaker, said that although there are “numerous opportunities” for globally mobile investors outside of their local market, it is “still essential” for them to seek financial advice to understand the local market.
