Taiwan’s private wealth grew at a slower pace in 2011 than the worldwide average, outpaced primarily by wealth growth in emerging markets, the Boston Consulting Group (BCG) said in its latest annual wealth report.
The US-based management consulting firm found that global private financial wealth grew a mere 1.9 percent in 2011 to $122.8 trillion, owing largely to economic uncertainty and struggling equity markets in developed economies.
The increase was considerably weaker than in either 2009 or 2010, when global wealth grew by 9.6 percent and 6.8 percent, respectively.
While Asia-Pacific, excluding Japan, sustained double-digit growth of 10.7 percent to $23.7 trillion in 2011, Taiwan’s private wealth growth slowed to 0.2 percent, with domestic equities the hardest hit, the report said.
In the BRIC (Brazil, Russia, India and China) countries, total private wealth increased by 18.5 percent in 2011, compared with negative growth in North America (down 0.9 percent), Western Europe (down 0.4 percent), and Japan (down 2.0 percent).
“Only those wealth managers who take action, as opposed to adopting a wait-and-see attitude, will be in a position to thrive, regardless of which direction the markets ultimately take,” said Monish Kumar, a co-author of the report and the global leader of BCG’s asset and wealth management segment.
In terms of households, the United States still had the largest number of millionaire households (5.1 million) in 2011 – down 2.5 percent from the 5.3 million in 2010 – followed by Japan with 1.6 million and China with 1.4 million.
Taiwan ranked eighth with 246,000 millionaire households, down 0.4 percent from the 247,000 millionaire households recorded in 2010.
The report said the highest density of millionaire households in 2011 was found in Singapore, where 17.1 percent of its households have private wealth of $1 million or higher.
It was followed by Qatar (14.3 percent), Kuwait (11.8 percent), Switzerland (9.5 percent) and Hong Kong (8.8 percent).
The report also predicted that China’s number of millionaires would continue to grow strongly, driven by the large number of initial public offerings expected in the country and new wealth generated predominantly by entrepreneurs.