SG wealth edge faces test as India, Japan grow capital pools

South Korea is amongst the markets challenging Singapore.

Singapore's asset and wealth management (AWM) sector is set to outpace regional growth, but competition could intensify as markets such as India and Japan deepen their capital pools and attract more investment, a PwC report showed.

The city-state’s assets under management (AuM) are expected to grow 8% annually through 2030, ahead of Asia-Pacific’s (APAC) 6.8% forecast. It has US$4.6t in managed assets, according to Monetary Authority of Singapore (MAS) data cited by PwC. 

It also holds 8% of global sovereign wealth fund assets, making it the second-largest such market in APAC, the report added.

However, the region sees intensifying competition, with countries such as India, Japan, and South Korea building deeper investment markets.

In India, growth is being driven by more retail investors and larger institutional funds, whilst reforms in Japan are encouraging households to move more of their savings into investment products.

“We’ve seen a shift in cross-border and intra-regional capital flows,” PwC said. “The opportunities include the growth in family offices and wealth management for mass affluent and high net worth investors.”

Still, government support, sovereign wealth flows, digital wealth platforms, and new investment structures are expected to support Singapore’s growth, PwC said. 

For instance, the MAS expanded the Equity Market Development Programme from $5b to $6.5b in Budget 2026, with $3.95b already allocated to nine asset managers.

The government also announced a $1.5b top-up to the Financial Sector Development Fund, in addition to the $3b Anchor Fund, which supports high-growth companies seeking to raise funds in the market.

“A new Central Provident Fund life-cycle investment scheme, set for launch in 2028, could channel billions into the Singapore equity market,” the report added.

However, PwC flagged risks such as lower fees, rising costs, and different rules across APAC markets, with 95% of the region’s AWM firms having experienced profit pressure over the past five years, with 44% describing it as high.

In addition, Paul Pak, Asia-Pacific and Singapore asset and wealth management leader at PwC Singapore, said asset and wealth managers cannot be everywhere, all the time across a diverse and fast-moving region.

“They need to make clear choices about where to anchor operations, build capabilities and serve clients across markets,” Pak added.