Asia Remains Remains Crucial Hub for Investors Like James Richman

27 May 2020  – Asia has been rapidly producing billionaires as of late. There are many factors behind this, and it only increases the region’s allure for more investments. 

James Richman, billionaire philanthropist from Latvia, has already made significant allocations in the region. Known for his growing investments in the region, particularly India, Hong Kong, Singapore, Cambodia, the Philippines, and Thailand, the investor remains bullish about the whole region and is understood to consider the region more prepared to bounce back post-coronavirus when compared to its Western counterparts. 

He has also reportedly committed $18m towards the efforts to combat the global pandemic. 

Known for his investments in the emerging nations in Asia, investor James Richman increases his stakes in the region through further investments in India, Vietnam, Thailand, and Singapore. 

Investors have seen the enormous potential that the region holds. Data suggests that whatever direction that the relationship between the US and China takes will not affect the tendency of increasing billionaires in the region.

Richman’s extraordinary abilities in terms of pattern recognition has led him to invest in different sectors in the region. It is said that he has engaged the emerging technologies, healthcare, and real estate sectors with funds amounting to several $58m based on recent filings.  

It seems the increasing number of billionaires in the region also give a good indication that Richman’s investments will once again prove to be profitable for the investor. 

Let us take a closer look at the interesting trend of increasing Asian billionaires.

Asia, home to a third of the billionaire population in 5 years

Today, the world’s top region for billionaires is Asia. The numbers point that it has no plans of relinquishing this lead in the near future. In fact, all indicators suggest that this gap will even bloat in the next few years.

A recent report has shown that the total of billionaires in Asia will increase to a whopping 1,000 in the next five years. Asia will account for over 33% of the global population of billionaires with a projected number of 2,696 by the year 2023.

“Despite a darkening economic outlook, wealth creation will remain constant in 2019,” said Liam Bailey, the global head of research for Knight Frank. The report summarized how wealth growth will develop globally over a five year period despite prevailing issues like the US-China trade war and Brexit.

The report outlined that out of the 59 countries that were analyzed by Knight Frank, eight out of the ten fastest-growing wealthy populations are in Asian nations. Despite the global deceleration of wealth growth, Asia is expected to outperform. 

Growing ultra-high-net-worth-individuals

Ultra-high-net-worth-individuals (UHNWI) are people with a net worth of more than $30 million. The countries in the region are projected to have the largest growth for them. India, Philippines, and China are placed 1st, 2nd and 3rd when it comes to increasing their UHNWIs.

“India and the Philippines, both coming from a lower base – developing markets – have huge possibilities for entrepreneurial growth,” explained Nicholas Holt, Knight Frank’s Asia-Pacific head of research. “Huge drivers of urbanization, industrialization, etc, in some of these markets, are going to drive the prospects of wealth creation,” he added.

Real estate becoming a significant factor

Globally, several factors are driving the increase in high-net-worth populations. Meanwhile, Asia has seen real estate as the main source of this occurrence. “Growth in non-financial assets, that is real estate, is one of the leading factors driving UHNWI growth,” said Oliver Williams, head of GlobalData WealthInsight, a wealth research firm that was one of the resources of Knight Frank in making the report. 

Although a widening gap between social classes may become a prevailing issue that policy-makers must closely take action of.

Astounding billionaire growth in China

Per country, the US still holds the most number of billionaires. However, China seems to be on a rapid rally as it makes two new billionaires every week. This is what recent reports have disclosed. “Twelve years ago, the world’s most populous country was home to only 16 billionaires,” it added. “Today, as the Chinese Century progresses, the number 373, nearly one in five of the global total.”

One of these Chinese billionaires supports this. “Nowhere else in the world can you find better conditions for growth than in China. The continued progress of wealth creation is supported by government policies liberating the economy, while urbanization and business model disruption have crafted powerful entrepreneurs.”

China on the brink of dominance

Next year, 2020, will mark the moment China dethrones the United States as the world’s top economy. This is according to a fresh report by the Standard Chartered Bank. These results were gathered by analysts who surveyed the countries’ purchasing power parity (PPP) exchange rates and nominal GDP.

This monumental change is due to the strengthening of the middle class in Asian countries, explains the report. “The global middle class is at a tipping point,” according to Madhur Jha, a Standard Chartered researcher. 

“By 2020, the majority of the world population will be classified as middle class. Asia will lead the increase in middle-class populations even as middle classes stagnate in the West.”

Change is inevitable

As they say, “the only thing permanent in this world is the change”. Investors and, basically, people from every sector must be able to keep this in mind. Shifts like the growth of billionaires in Asia must be seen as opportunities to invest in. 

Great businessmen like James Richman have already established footholds in the region, but it’s never too late to prepare as well.