Asia will more than double the number of millionaires currently in the region, with just China and India accounting for more than 40% of global economic growth for 2011 and 2012. So says a new report from Swiss banking firm Julius Baer.

The first Asia Wealth Report, released in conjunction with the Julius Baer Lifestyle Index on Wednesday, said that in 2010 there were an estimated 1.16 million high-net-worth individuals (HNWI) in Asia, with a combined net worth of some $5.6 trillion. The report forecast that those HNWI would more than double to 2.82 million, and their net worth would nearly triple to $15.81 trillion by 2012.

China alone, the report said, would have 1.4 million HNWI accounting for $8.76 trillion by 2015. Yet it would not have the fastest growth rate in terms of HNWI; that honor is reserved for Indonesia, which the report said would add 25% more such persons over the five-year period, increasing to 99,000 by 2015 and amassing assets of $487 million.

By 2015, the top ten Asian countries, together with the number of millionaires projected and their total net worth, is expected to be as follows:

 
Country

 
Number of HNWI
(thousands)

 
Wealth of HNWI
(billions)

1. China

            1,378

            $8,764

2. India

            403

            $2,465

3. South Korea

            310

            $1074

4. Taiwan

            136

            $593

5. Hong Kong

            131

            $711

 

 
Country

 
Number of HNWI (thousands)

 
Wealth of HNWI (billions)

6. Singapore

            129

            $616

7. Thailand

            128

            $609

8. Indonesia

            99

            $487

9. Malaysia

            68

            $329

10. Philippines

            38

            $164

 

The new index seeks to capture consumption costs in Asia Pacific and inherent inflation, and is based, the company said, "on a basket of 20 luxury goods and services that represent discretionary purchases of HNWI in the region." It covers high-end vendors in the cities of Hong Kong, Shanghai, Singapore, and Mumbai. It is intended to provide investors with a guide to the level of investment return necessary to sustain the HNW lifestyle, as well as to reveal the level of inflation underlying the economy.

Currently that level of inflation is pretty stiff for luxury living. It was up 11.7% YOY to April of 2011, compared with conventional CPI, which clocked in at 5.1%.

The new index seeks to capture consumption costs in Asia Pacific and inherent inflation, and is based, the company said, "on a basket of 20 luxury goods and services that represent discretionary purchases of HNWI in the region." It covers high-end vendors in the cities of Hong Kong, Shanghai, Singapore, and Mumbai. It is intended to provide investors with a guide to the level of investment return necessary to sustain the HNW lifestyle, as well as to reveal the level of inflation underlying the economy.

Currently that level of inflation is pretty stiff for luxury living. It was up 11.7% YOY to April of 2011, compared with conventional CPI, which clocked in at 5.1%.

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