6,500 millionaires expected to leave India this year, with many likely to go to Dubai or Singapore

SINGAPORE: The flow of wealth into Singapore will likely continue as the country enjoys its reputation as a safe haven for the ultra-rich to park their assets. And while many high net worth individuals (HNWI) come from China, a significant number hail from India.

India is the second biggest country when it comes to HNWI outflow around the globe, next to China. While China will see a net loss of 13,500 such individuals this year, India is expected to lose 6,500 HNWIs in 2023, with Dubai and Singapore among their chief chosen destinations.

The Henley Private Wealth Migration Report 2023 puts the UK and Russia in third and fourth places, with expected losses of 3,200 and 3,000 HNWIs, respectively, for this year.

As large as the number of HNWIs India is expected to lose this year is, the number is still smaller than the 7,500 the country lost in 2022, says a June 13 Business Standard report.

An HNWI has investable assets over US$1 million, and an ultra-high net worth individual (UHNWI) has investable assets over US$30 million.

The group head of private clients at Henley & Partners, Mr Dominic Volek, attributes the outflow of HNWI wealth to “recent and persistent turmoil” around the globe, adding that there are several reasons why the ultra-wealthy move their families elsewhere, “from safety and security, to education and healthcare, to climate change resilience and even crypto-friendliness.”

He added that “nine of the top 10 countries for forecast net HNWI inflows in 2023 host formal residence by investment programmes that encourage foreign direct investment in return for the right to reside, which can also lead to citizenship in some cases. Investors see the clear value of diversifying their domicile portfolios as the ultimate hedge against both regional and global volatility, now and in the future.”

India’s millionaires face difficulties with prohibitive tax laws, as well as complicated regulations when it comes to outbound remittances.

In Singapore, the biggest bank in South East Asia, DBS, recently launched a new investment platform specifically for family offices, which are private wealth management that caters to the very rich. /TISG

DBS launches family office platform allowing ultra-rich to keep assets in Singapore without the need to move here