• Highlights the trend of quality longevity impacting life and financial planning
  • Notes that Bangkok ranks 11th in the world for high living costs, while Singapore retains the top spot

SCB Julius Baer, a joint venture between Siam Commercial Bank and Julius Baer, has released the "Global Wealth and Lifestyle Report 2025," which reveals trends in the changing behaviors of ultra-high-net-worth individuals (UHNWIs) and high-net-worth individuals (HNWIs) worldwide, particularly in the Asia-Pacific region, which continues to grow. The report highlights the trend of quality longevity, which significantly impacts life and financial planning, aligning with the evolving definition of luxury shifting from consumption of luxury goods to an emphasis on valuable experiences. Bangkok ranks 11th among the world's most expensive cities, while Singapore maintains its position at number one for the third consecutive year, reflecting the ongoing vibrancy and growth potential of the wealth market in the Asia-Pacific region.

The Asia-Pacific Region Remains the Heart of the Global Economy with Continuous GDP Growth Driving Wealth Surge

The Asia-Pacific region continues to be the fastest-growing region in the world. Despite a slight economic slowdown expected in 2024, it still outpaces the global average, which is a key factor driving rapid wealth growth in the region. The GDP is projected to grow by 4.5% in 2024, down from 5.1% in 2023, but still significantly higher than the global average of 3.3%. This trend directly impacts the number of high-net-worth individuals in Asia, which is expected to increase by 5% annually, reaching 855,000 by 2024, driven primarily by economic growth in China and India. This growth is anticipated to elevate the proportion of new HNWIs in Asia to 47.5% between 2025 and 2028, underscoring that the Asia-Pacific region remains a center of economic opportunity and a significant source of global wealth.

Bangkok Ranks 11th in the World for High Living Costs

The report reveals a shift in the rankings of cities with high expenses for wealthy individuals, with Bangkok rising six places to rank 11th globally, marking the most significant change in the region. It indicates that Bangkok has become one of the world's most expensive cities for luxury goods, including fashion for both men and women, as well as cars and watches. Other cities in the Asia-Pacific region include Singapore, which remains at number one for the third consecutive year, Hong Kong at number three (down from number two), Tokyo rising six places to rank 17th, and Shanghai dropping from fourth to sixth.

Changing Spending Behaviors of High-Net-Worth Individuals in the Asia-Pacific

High-net-worth individuals in the Asia-Pacific are showing an increasing trend in both spending and investment (39%), with an overall increase in investment reaching 68%. Investors in this region are also more inclined to invest in future trends or investments that align with their values compared to other regions. Stocks remain the most popular asset class, followed by real estate and cash. Additionally, while other regions are experiencing ESG fatigue, the Asia-Pacific is seeing a continuous commitment to sustainable investing, reflecting a long-term vision and awareness of the importance of creating positive impacts alongside financial returns.

The Trend of Quality Longevity and Its Impact on Life and Financial Planning

High-net-worth individuals in the Asia-Pacific prioritize quality longevity, with 100% of respondents indicating they are taking various measures to increase their lifespan, from lifestyle changes like regular exercise and healthy eating to gene therapy and cryogenics, with 21% utilizing these methods. Regarding financial longevity, most high-net-worth individuals stated they would adjust their wealth management strategies to accommodate longer lifespans. Respondents in the Asia-Pacific are more likely to create long-term care plans than those in other regions, with 68% opting for this choice.

Global Millionaires Shift Focus from "Luxury Goods" to "Valuable Experiences"

The report confirms the trend of transitioning from consumption of goods to an emphasis on experiences. While spending on luxury goods has slowed, demand for fine dining, exclusive travel, and curated experiences continues to grow, reflecting the evolution of the definition of "luxury" among high-net-worth individuals. They no longer view luxury as ownership of items but prioritize lifestyle, wellbeing, and meaningful experiences that fulfill emotional value and create lasting memories over material possessions.

Future Opportunities and Challenges

The wealth landscape in Asia is undergoing significant changes, with traditional businesses remaining a crucial foundation, but new opportunities from technology are diversifying and modernizing the profile of high-net-worth individuals in Asia. Additionally, the intergenerational transfer of wealth is expected to see the transfer of assets worth over $5.8 trillion between 2023 and 2029, accelerating the shift towards new demands in lifestyle and spending, such as a focus on sustainability, a full embrace of the digital age, and prioritizing experiences over ownership. These trends will significantly influence the global luxury goods market, real estate, and investment strategies in the coming years, paving the way for new opportunities and challenges ahead.

SCB Julius Baer Prepared to Navigate the Changing Wealth Landscape

As the only Swiss private banking entity operating in Thailand, SCB Julius Baer is ready to address the significant changes in the global wealth landscape, focusing on serving high-net-worth clients in Thailand through comprehensive services, including investment advisory, discretionary mandates, and wealth planning involving asset structuring, financial planning, and wealth transfer for the next generation. SCB Julius Baer is equipped to leverage expertise from a highly skilled team, including Relationship Managers (RMs) and Investment Advisors (IAs), to provide guidance and advice to key clients, helping them assess investment portfolio returns and plan for sustainable and effective wealth transfer to the next generation.

For more information and to download the "Julius Baer - Global Wealth and Lifestyle Report 2025," please visit www.juliusbaer.com/GWLR.