Where are the wealthy spending more?

A recent report shows that 68% of the affluent in Singapore and Hong Kong plan to spend more.

Affluent individuals in Singapore and Hong Kong are increasingly inclined to spend more, particularly on luxury items, despite the rising cost of living, according to data from MDRi, a group business of the international law firm Mishcon de Reya.

The MDRi report highlighted that Singapore has the highest inflation rate among the surveyed markets, with 92% of consumers feeling the impact of rising living costs. 

Despite this, spending sentiment has not been deterred, with 68% of the affluent segment in Singapore, as well as Hong Kong, spending slightly or significantly more than before.

The top items that the affluent segment in these markets is spending more on include food and beverages (63%), travel (60%), and luxury products (52%).

“The desire to spend more on luxury items among ASEAN’s affluent segments is modest compared to their counterparts in Singapore and Hong Kong,” the MDRi said.

“This difference reflects a more mature and sophisticated approach to luxury consumption in these regions, supported by a higher concentration of high-net-worth individuals,” the MDRi added.

The report also highlighted that the affluent segment in these two markets is focusing on investment and real estate, with 52% and 51% spending slightly or a lot more on these items, respectively.

“Despite regional differences, there is a common understanding among the affluent in ASEAN, Singapore, and Hong Kong of the importance of future planning through investment and real estate. This value is deeply ingrained in Asian cultures and is particularly prominent in developed economies like Singapore and Hong Kong,” MDRi said.

Meanwhile, high taxation and costs did not deter the affluent segment in the two markets from spending on cars. Data from the report showed that  51% of wealthy individuals in Singapore and Hong Kong plan to increase vehicle spending.

Other products which the affluent segment in Singapore and Hong Kong plan to increase their spending on include expensive consumer electronics (51%), entertainment (49%), and beauty (40%).