Southeast Asia and India were the most preferred markets for billionaires worldwide to make investments, according to a UBS report, outdoing the broader region's largest economy.
Asia Pacific was selected by the world’s richest as the region with the best medium-term outlook for commercial business and investment opportunities, according to UBS's «Billionaire Ambitions Report 2022».
«Regionally, [billionaires] are primarily looking to Asia Pacific economies such as Southeast Asia and India, where economic growth remains robust. North America, with its huge domestic market and vibrant entrepreneurial culture, also remains a popular region,» the report said.
«They are in an ideal position to use their entrepreneurial capital to deliver fresh approaches and effective ways of doing what’s needed to tackle these issues. Many entrepreneurs are optimistic about the role that private companies can play alongside governments in creating a positive impact for future generations», August Hatecke (pictured above, left), Co-Head Wealth Management Asia Pacific, UBS Global Wealth Management, Country Head, UBS Singapore added.
China Opportunity
Interestingly, the world’s second-largest economy – China – was not the leading pick within the region with 42 percent of respondents selecting it as the top market for business and investments, compared to 58 percent for APAC ex-mainland China.
«While still ahead of the rest of the world, mainland China lags these regions somewhat. Meanwhile, surprisingly few are drawn to Western Europe considering its position as one of the world’s major economic blocs,» the report added.
Energy Sector
By industry, billionaires chose energy (44 percent) as the best sector for medium-term opportunities, «possibly due to today’s supply constraints and the accelerating secular transition to renewables». While valuations have fallen, respondents also continued to favor tech (32 percent) and healthcare (32 percent).
In terms of risk, geopolitics was the most common answer, closely followed by inflation.
«We’re living through an era where instability and innovation collide. This has created a cohort of billionaires with a high level of expertise and passion, who first and foremost see themselves as problem-solvers. Like everyone else, they are concerned about the challenges facing the world», Amy Lo (pictured above, right), Co-Head Wealth Management Asia Pacific, UBS Global Wealth Management, Head and Chief Executive, UBS Hong Kong added.
Billionaire Population
In March 2022, there were 2,688 billionaires worldwide worth $12.7 trillion, down from 2,755 individuals with $13.1 trillion in 2021. APAC was the region with the largest billionaire population globally at 1,084 with a total wealth of $4.2 trillion, compared to 1,143 individuals and $4.7 trillion a year ago.
The report is based on surveys, questions and information from the UBS Evidence Lab on over 2,500 billionaires across 75 markets.
