In the bustling heart of Singapore’s central business district stands the iconic Merlion statue, a symbol of the city’s rich heritage and its global economic significance. Recent insights from a comprehensive survey conducted by HSBC reveal a fascinating trend among high-net-worth entrepreneurs, suggesting that the motivations behind relocation are evolving in unexpected ways.
The survey, which engaged 2,939 business owners with substantial assets—those boasting at least $2 million in investible assets or a total net worth of $20 million—found that a striking 57% are contemplating adding a new residence within the next year. This marks a slight increase from the previous year, indicating a growing trend among affluent individuals seeking new horizons. Notably, the enthusiasm for relocation is particularly pronounced among Gen Z entrepreneurs, with over 75% expressing a desire to move.
When delving into the motivations for this potential migration, the results paint a nuanced picture. Surprisingly, only one-third of respondents cited tax efficiency as a primary reason for their consideration of new countries. Instead, the top motivators were significantly different: improved security and safety (47%), enhanced educational opportunities (52%), and a better quality of life (63%) were all ranked higher. This trend challenges the common narrative that tax incentives are the primary drivers for affluent individuals seeking new homes. The report succinctly notes, “Taxes create acres of news coverage, but among the majority of our entrepreneurs, this does not appear to be the deciding factor about where to live.”
The backdrop of this survey comes at a time of significant political and economic shifts, including a wealth tax proposal gaining traction in France and concerns in the U.K. about recent tax changes potentially prompting a wealth exodus. In this context, the motivations for relocation seem to be shifting towards personal and familial well-being rather than solely financial considerations.
Interestingly, U.S. respondents showed a lower inclination to move, yet those who did displayed a strong desire to immerse themselves in new cultures—72% of U.S. respondents expressed this interest, compared to a global average of 57%. This cultural curiosity stands in stark contrast to French entrepreneurs, only 39% of whom indicated a desire to relocate, suggesting a preference for the comforts of their established environments.
The survey also highlighted preferred destinations for relocation. Singapore emerged as the top choice for 12% of respondents, followed closely by the U.K. at 10%. Japan and Switzerland tied at 9%, with Japan gaining traction among Asian entrepreneurs. The U.S. maintained an 8% interest level, reflecting a consistent allure despite fluctuations in the political landscape.
Notably, Switzerland stands out as the only country where a better quality of life (57%) surpassed the allure of new investment opportunities (49%) or business expansion (48%). Furthermore, it also ranked higher in terms of cultural experiences compared to educational opportunities, a unique trend compared to other hotspots like Japan.
While business motivations remain significant, entrepreneurs expressed more concern about adjusting to a new environment (40%) than about the logistics of reestablishing their business operations (36%). This insight underscores the psychological and emotional dimensions of relocation, suggesting that the personal journey often weighs heavily on the minds of those with considerable wealth.
In summary, the current landscape of high-net-worth individuals considering relocation is marked by a complex interplay of factors, where personal safety, education, and quality of life are increasingly taking precedence over financial incentives. As this trend continues to unfold, it may reshape not only the global migration patterns of the wealthy but also the economic landscapes of the countries they choose to call home.
