This week, Endowus, an independent Asian wealth manager, has launched the 2023 edition of its Wealth Insights Report. It aims to better understand sentiments on the economy, personal financial health and investment habits of those residing in Singapore and Hong Kong. 

A new Wealth Insights report by Endowus, the Asia wealth management group, finds that Hong Kong respondents to its survey are significantly more optimistic about their financial health in 2023 than those in Singapore.

The report, taking views from 400 respondents, also shows that Singapore-based individuals are much less confident of economic recovery compared with those in Hong Kong, spurred by concerns over rising inflation and interest rates, as well as the volatile stock market. Inflation and the increase in the cost of goods and services is the biggest financial concern in 2023 for Singapore respondents across all age categories, the report said. Three in five respondents stated that they are not at all confident that the economy will recover, and less than half are confident that they have sufficient funds for retirement.  

Conversely, recovery after reopening of China’s economy after the lockdowns have boosted confidence among respondents in Hong Kong. Hong Kong respondents have higher expectations for “people to spend more money” compared with those in Singapore, the report said.

Among other details, 43 per cent of Singaporeans are pessimistic about their personal financial health, while only 30 per cent of Hong Kong respondents think the same way. This has led to a sense of caution among Singaporeans when it comes to investing their money, the survey said. When asked about their investment risk appetites, 41 per cent of Singaporeans noted that they are willing to grow capital by taking some risks, compared with 54 per cent of Hong Kong respondents, the Endowus report shows. 

Nevertheless, both Singapore and Hong Kong respondents are keen to invest more in 2023, the firm said. One in three respondents in both markets said that they are keen to do so to build a more robust retirement nest egg, as they understand that inflation is eroding the value of their savings. 

Singapore respondents are also more likely to invest emotionally when the time is right, compared with those in Hong Kong. Fifty per cent of Singaporeans who have experience of investing do so when the time is right, compared with 31 per cent of Hong Kong respondents, the report said. Across both markets, those who have no investment experience are more likely to have the worrying habit of timing the market.

“While it is good to see that a majority of Singaporeans have investing experience and are taking the steps to seek out investment knowledge, there is a lot of work to do in providing individuals with the knowledge and advice to invest well towards wealth goals, and differentiate investing and managing wealth from speculating and trading,” Gregory Van, CEO at Endowus, said. 

“In this volatile climate, it is ever more important for investors to keep to heart the core pillars of investing well - creating well-diversified portfolios towards specific goals, automated and maintained at suitable risk levels, implemented with best-in-class solutions at a low fair cost,” he added. 

The annual report, now in its second year, was commissioned by Endowus to better understand sentiments on the economy, personal financial health and investment habits of those residing in Singapore and Hong Kong. The study was conducted between March and April 2023 among an audience set aged 20 and upwards.