Taiwan’s swelling ranks of wealthy people are reshaping how capital is deployed, with overseas investments shifting from optional diversification tools to a core pillar of long-term wealth strategy, a study released yesterday by CTBC Commercial Bank Co (中信銀行) showed.
Total personal wealth in Taiwan is projected to grow at an average annual rate of about 6 percent from last year through 2029, reaching about NT$279 trillion (US$8.82 trillion), CTBC Bank senior vice president John Yang (楊子宏) told a news conference in Taipei.
The expansion reflects Taiwan’s deepening role in the global technology supply chain, which has bolstered corporate earnings, equity valuations and private wealth, Yang said.
Photo: CNA
“Succession sits atop the list of concerns among high-net-worth individuals, both young and old,” Yang said.
Assets held by high-net-worth individuals — defined as those with at least NT$100 million — are expected to increase even faster, rising at a pace of about 10 percent per year to NT$59 trillion by 2029, said the study, which is conducted every two years.
The divergence signals a rapid concentration of wealth among the richest households, said Sharon Weng (翁詩涵), a partner at Boston Consulting Group, which conducted the study.
The number of high-net-worth individuals is forecast to climb from an estimated 123,000 last year to 155,000 by 2029, the study showed.
Within that group, ultra-high-net-worth individuals — those with more than NT$1 billion in personal assets — are set to increase to 11,000 from 8,000, far outpacing growth in the broader market, it showed.
As fortunes scale up, offshore investment has evolved from a risk-hedging tool into a structural foundation supporting family assets, operating businesses and intergenerational succession, the study showed.
About 74 percent of high-net-worth individuals hold overseas assets, while an additional 14 percent plan to invest abroad, it showed.
Among ultra-high-net-worth families, the proportion rises to 86 percent, underscoring cross-border deployment as a central feature of wealth planning, Weng said.
Geographically, wealthy people in Taiwan are becoming more selective, she said.
Singapore and Japan have emerged as favored destinations in the Asia-Pacific region, while exposure to US assets continues to rise, she said.
Holdings in Hong Kong and Macau have stabilized after earlier pullbacks, as investors adopt a wait-and-see stance, while allocations to mainland China remain broadly cautious, Weng said.
The shift reflects a growing emphasis on resilience and risk control as families navigate geopolitical tensions, regulatory uncertainty and market volatility, she said.
The survey also points to a generational divide, she said.
First-generation wealth creators, typically aged 55 to 74, prioritize capital preservation, liquidity and structural stability, favoring lower-volatility instruments, she said.
Second and third-generation family members, primarily aged 35 to 54, are demonstrating a stronger appetite for growth-oriented and globally diversified assets, including cryptocurrency, while also showing greater involvement in education, family values and governance, she added.
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