Hong Kong is poised to welcome approximately 200 high-net-worth individuals (HNWIs) this year, marking a notable shift after five years of wealth migration to other regions, particularly Singapore. This resurgence is largely attributed to Hong Kong’s enticing measures for the affluent, including tax concessions for family offices and attractive residency programs.

The last few years have seen many millionaires leaving Hong Kong due to strict COVID-19 measures and political unrest. However, with the city’s recent initiatives aimed at attracting wealth, private banking and wealth management sectors are experiencing a revival, as evidenced by a 2.1% growth in assets under management, reaching HK$31 trillion (around S$5.4 trillion) in 2023.

In contrast, Singapore is tightening its scrutiny of foreign funds, particularly in light of a significant money laundering case amounting to S$3 billion. As a result, some wealthy individuals are finding the regulatory environment in Singapore less appealing, leading them to explore opportunities in Hong Kong instead. The Monetary Authority of Singapore’s recent digital platform aimed at combating money laundering has reportedly caused frustration among wealthy clients, leading some to reconsider their options.

Hong Kong’s appeal is further bolstered by its geographic advantages and efficient transportation links to mainland China. Many affluent Chinese are drawn back to Hong Kong to closely monitor their businesses in the Greater Bay Area, despite ongoing political changes. The city has introduced a top talent visa program, which has seen over 68,000 applications, primarily from mainland Chinese applicants, since its launch in 2022.

While Singapore remains a top choice for many millionaires, expected to attract a net influx of 3,500 wealthy individuals this year, Hong Kong is also regaining its status as a premier destination for the affluent. The financial secretary of Hong Kong noted that more than 340 applications have been submitted for a residency program aimed at investors, signaling a renewed interest from HNWIs.

Overall, while Singapore continues to attract wealth, Hong Kong is experiencing a notable rebound in its millionaire population, suggesting a potential shift in the regional landscape for affluent individuals.