Tuesday, September 6, 2011
Surge of private wealth in Asia could lead to asset inflation, say experts
SINGAPORE: The amount of private wealth in Asia is estimated to triple to US$16 trillion by 2015, according to Swiss private bank Julius Baer's annual wealth report done jointly with CLSA. Some experts say the surge could lead to asset inflation problems for many governments.
And amid the current market volatility, Julius Baer said its clients in Asia have taken on more liquid positions in order to re-enter the market at a better opportunity.
Indonesia is set lead the region's growth over the next five years in the number of people with liquid assets worth more than US$1 million. That number is expected to triple to nearly 100,000. That is above average for the region, where it is predicted the wealthy will more than double to 2.82 million by 2015.
But experts warn that the explosion of Asian wealth could pose a problem, with investment options limited to mainly property and the share market.
Kelvin Tay, Chief Investment Strategist with UBS, said: "In Asia in this point of time, currently we do not have as many investment choices as you would probably do if you are in the west or the US right now. So you need to actually look at that seriously and consider how you can actually broaden the scope for investment solutions to be found to cater to this increasing wealth that is being generated.
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Source : MediaCorp Pte Ltd by Ryan Huang