Arya News - The high level of cash holdings highlights Singapore investors’ continued preference for liquidity and capital preservation – while also presenting opportunities to diversify into longer-term investment solutions, the report said.
SINGAPORE – Singapore’s wealthy investors are accumulating more assets but are keeping the bulk of their money in cash and deposits, highlighting a preference for liquidity and a challenge for به گزارش خبرگزاری آریاs when it comes to persuading clients to put more of their money to work in investments.
Average assets held by Singapore’s high-net-worth clients rose 6% to US$1.5 million (S$1.95 million) in the first half of 2026, from US$1.41 million in the same period in 2025, according to a report by Citi Wealth and research firm RFI Global released on Oct 22.
Average assets under management (AUM) among affluent clients rose 5% to more than US$565,000 in the first half of 2026, from US$537,710 in the first half of 2025.
The high-net-worth segment comprises banking customers with at least US$1 million in AUM, including investible liquid assets, while the affluent segment covers those with US$100,000 to US$1 million.
The increase in average wealth comes as Singapore strengthens its position as a regional wealth management hub, attracting clients who want to manage assets across borders.
However, cash and liquid deposits still accounted for 72% of onshore assets held by affluent clients and 74% of assets booked offshore, the report said. Only 26% to 28% was allocated to investments. Figures for the high-net-worth segment were not given.
In comparison, affluent and high-net-worth clients in the US allocate 58% of their assets to long-term investments, with 42% held in deposits, the report said.
The high level of cash holdings highlights Singapore investors’ continued preference for liquidity and capital preservation, while also presenting opportunities to diversify into longer-term investment solutions, the Singapore At Heart, Global In Possibilities report said.
For investors, it raises questions about how to balance ready access to cash with the need to grow their wealth over the longer term. Banks and wealth managers may respond by offering more investment products and advisory services to help them do so.
Mutual fund ownership among Singapore’s high-net-worth investors nearly tripled from 11% in 2022 to 31% in 2026, the highest adoption rate in Asia.
Mutual funds pool money from many investors to buy a basket of assets, such as shares and bonds, and are managed by professional fund managers. They offer a way to diversify investments without having to select individual securities.
But the growing use of investment funds has yet to dislodge the preference for cash, which offers flexibility and shields investors from the day-to-day swings of financial markets.
The large share of cash holdings suggests that converting wealth into longer-term investments remains a work in progress.
The report also found that Indonesia accounted for 41% of cross-border banking customers in Singapore, followed by Malaysia at 36%.
The findings suggest that wealth managers may need to combine digital tools with personal advice, rather than rely on technology alone. ILLUSTRATION: THE STRAITS TIMES
Citibank Singapore chief executive Yeo Wenxian said Singapore’s appeal as an international wealth hub is supported by a stable operating environment and deep connectivity to global markets.
“As wealth becomes increasingly international, clients are looking for opportunities that extend beyond their home markets, while seeking trusted advice to help them navigate an increasingly complex investment landscape,” said Yeo, who is also head of wealth for Asia South, which comprises the UAE and Singapore.
For Singapore’s financial sector, the opportunity extends beyond attracting deposits. Banks are also competing to provide investment advice, portfolio management and succession planning as clients’ financial needs become more complex.
Technology is also changing how Singapore’s wealthy approach financial decisions, the report said.
Some 58% of high-net-worth clients and 51% of affluent clients surveyed said they were comfortable exploring artificial intelligence for personalised financial insights, particularly for comparing products and screening investment portfolios.
But they still want control over decisions. The ability to retain full control was the top consideration for adopting AI, cited by 31% of respondents, while 22% wanted the option of consulting a human adviser.
The findings suggest that wealth managers may need to combine digital tools with personal advice, rather than rely on technology alone.
Relationship managers continue to play an important role in providing trusted advice. Investors favour a hybrid advisory model, where AI accelerates analytical and preparatory research, while human advisers deliver contextual judgment, emotional reassurance, and strategic execution.
In Singapore, the relationship manager Net Promoter Score, a measure of how likely customers are to recommend their relationship manager to others, rose from +19 in 2022 to +31 in 2026.
The improvement suggests stronger client advocacy, even as digital capabilities expand.
Yeo said trust remained central to financial decision-making, with advisers increasingly expected to help clients navigate investment opportunities and prepare for the transfer of wealth across generations.
Estate planning is another area in which Singapore performed strongly.
The report found that 76% of its affluent Singaporean customers aged 55 and above had established wills or wealth succession plans, compared with 41% in Hong Kong.
Across the broader affluent population, around three in four Singaporeans had a will or succession plan in place, or intended to establish one.
Financial adviser recommendations and health concerns were the two leading triggers for starting succession planning, each cited by 41% of respondents.
Other reasons included retirement planning, marriage or divorce and the birth of a child.
Protecting family assets was the top priority when structuring estates, cited by 51%, ahead of avoiding family disputes and ensuring fair distribution among heirs, both at 45%.
The findings underline how wealth management goes beyond a client’s balance sheet and takes into account their family dynamics, life goals and the legacy they hope to build, Yeo said.