The Reasons Why More Than Half of Singapore’s Wealthy Are Thinking About Leaving the Country

A recent report by Agility Research & Strategy reveals that more than half of Singapore’s high-net-worth Individuals (HNWIs) are contemplating relocation abroad. Notably, younger and very high-net-worth (VHNW) individuals are leading this trend.

Their motivations extend beyond financial gains to include the pursuit of new cultural experiences, lifestyle enhancements, and expanded professional opportunities.

This Pacific Prime CXA article will discuss what is going on, its implications, the future outlook, and the importance of insurance in the context of health, business, and family.

What Is Going On

Singapore’s affluent are increasingly looking beyond their borders. Many are considering a move overseas not merely for better investment climates or tax incentives but also to embrace a different quality of life.

A significant finding is the strong preference for international education among their families—while 40% of HNWIs send their children to local universities, 60% plan to secure overseas education, with the United Kingdom emerging as the top destination.

Also, high-net-worth individuals have set up legal trusts, mostly to make sure their money is transferred smoothly when they die. With one-third of the high-net-worth population expected to inherit large fortunes in the next decade, there will likely be a dramatic change in who controls the money.

This shift underscores a broader desire for global exposure and diversified opportunities, resulting in more outbound movements of Singaporeans to the rest of the world.

What Are the Causes?

The main reasons behind this trend are not just financial ones, like lower taxes or better investment climates. A mix of lifestyle goals, global exposure, and long-term wealth preservation strategies are also very important.

Many affluent Singaporeans seek to secure a more diversified and enriched future for themselves and their families, even as they weigh the potential downsides of reduced domestic economic engagement.

Key reasons behind this outbound movement include:

Global Exposure & Cultural Experiences: Many HNWIs desire to immerse themselves in different cultures, gain international business insights, and enjoy diverse lifestyle benefits unavailable at home.
Enhanced Opportunities: With 60% preferring overseas education for their children, there is a strong drive to access top-tier global institutions and broaden their family’s horizons.

Not every Singaporean child can compete for spots in the top 3 Singaporean universities. By setting a foothold abroad, there is less competition and a broader ecosystem for education, career, and business opportunities.

Wealth Preservation & Succession Planning: Amid global economic uncertainties, establishing legal trusts and relocating to jurisdictions with robust legal frameworks is seen as essential for securing and transferring wealth effectively.
Lifestyle & Quality of Life Enhancements: The pursuit of improved living standards, including better healthcare, safety, and leisure opportunities, motivates many to seek a new home abroad.
Economic & Regulatory Considerations: Shifts in domestic economic policies, potential regulatory changes, and concerns over future tax burdens are prompting HNWIs to consider more favorable international environments.
Broader Strategic Diversification: Diversifying assets and living experiences on a global scale is viewed as a prudent strategy to manage risks in an increasingly interconnected world.

Listed below are the potential negative impacts:

Economic Impact: The departure of HNWIs may reduce local investment and spending, slowing economic growth and affecting job creation in key sectors.
Talent Drain: When younger, affluent innovators leave, local entrepreneurial energy and innovation can diminish, impacting global competitiveness.
Wealth Transfer: Significant relocation of wealth can shift economic power abroad, weakening local financial markets and potentially destabilizing economic structures.

Future Outlook

The future for Singapore’s affluent is poised for dynamic change as increasing outbound relocation could transform the nation’s economic landscape. With a growing number of high-net-worth individuals moving abroad, shifts in wealth and business leadership are expected.

At the same time, government agencies such as the Ministry of Finance, the Economic Development Board (EDB), and the Monetary Authority of Singapore (MAS) are reinforcing policies to nurture local talent, foster entrepreneurship, and retain wealth within the country.

The next generation is anticipated to take a proactive role in expanding financial portfolios and leveraging inherited wealth to drive new business ventures. This trend is further supported by Singapore’s commitment to global education and cultural integration, as highlighted in initiatives like the Research, Innovation and Enterprise (RIE) 2025 plan.

Key future outlook points include:

Economic Transformation: Initiatives from the EDB and MAS will continue to affirm Singapore’s status as a global business hub, ensuring sustainable growth even as wealth dynamics evolve.
Next-Generation Entrepreneurship: Initiatives like the Startup SG programme and talent development schemes by Enterprise Singapore are fostering an environment where younger affluent individuals can launch innovative ventures and drive economic diversification within the country.
Enhanced Global Integration: Emphasis on international education and cultural exchange is preparing Singapore’s HNWIs for a more interconnected future, aligning with national policies that promote global competitiveness.
Social Responsibility and Philanthropy: With an increasing focus on societal contributions, government-supported frameworks encourage philanthropic efforts from affluent parties that benefit local communities, ensuring that wealth transfer and business expansion also contribute to social cohesion.

Why Comprehensive Insurance is Essential for Expats

As Singapore’s affluent consider relocating for better lifestyles and global opportunities, it’s crucial for expats—wealthy or not—to secure robust insurance coverage.

Whether you’re moving abroad for work, study, or long-term residence, comprehensive insurance can safeguard your health, property, and financial well-being.

Health Insurance: Access to quality medical care abroad is vital. A robust health policy covers emergency treatment, hospitalization, and ongoing care, ensuring you and your family receive top-notch medical support, no matter where you are.
Property and Casualty Insurance: For business owners, property and casualty insurance is essential for protecting new assets when expanding or relocating operations. Robust coverage safeguards these investments from damages caused by natural disasters, theft, or other unforeseen events that may vary by region.

In addition to asset protection, this coverage is crucial for managing liabilities arising from business-related accidents or incidents. It provides a financial safety net that helps ensure smooth operations and guards against costly claims that could otherwise destabilize your company’s bottom line.

Family Protection: For expats with families, comprehensive insurance ensures that children and dependents are covered, safeguarding their future through consistent coverage for education, healthcare, and personal development.
Financial Stability & Peace of Mind: With the right insurance in place, you can confidently focus on establishing your new life abroad. It helps mitigate risks and manage financial setbacks, preserving your wealth and maintaining your standard of living in unfamiliar environments.

Conclusion

The trend of overseas relocation among Singapore’s affluent marks a significant shift in wealth management and lifestyle priorities. As high-net-worth individuals seek global exposure, better educational opportunities for their children, and enhanced legal frameworks for wealth preservation, the economic and social fabric of Singapore is evolving.

Whether you’re a frequent traveler, expat, or business owner, Pacific Prime CXA is here to help. As a leading insurance broker, we specialize in identifying travel and health insurance plans and employee benefits packages that meet your specific needs and the unique needs of your workforce.

Frequently Asked Questions

What drives Singapore’s HNWIs to consider relocating overseas?

They seek global exposure and cultural experiences, better educational opportunities for their children, robust wealth preservation through legal trusts, and an enhanced lifestyle with improved healthcare, safety, and diverse business prospects.

What are the potential economic impacts on Singapore if many HNWIs leave?

Their departure could reduce local investment and spending, slow GDP growth, trigger talent drain, and diminish philanthropic contributions. This wealth transfer may weaken domestic markets and destabilize the socio-economic landscape.

Why is comprehensive insurance crucial for those relocating or expanding business operations?

Robust insurance—covering health, property, and casualty—protects expats and business owners against unforeseen risks abroad. It ensures asset protection, liability management, and financial stability, which are essential for sustaining a quality lifestyle and business growth.