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EDITORIAL ANALYSIS: It's Not Surprising Wealth Managers Are Smiling On The Philippines

Tom Burroughes

14 May 2018

A plethora of international wealth management houses have pushed into the Philippines market in recent years, and new figures seem to underscore that this market merits attention. And maybe the case becomes even stronger, at least in the short run, while investors wait to see how the shock Malaysia election result works out.

A report by Philstar Global, a Philippines-publication, notes that a report by says its own research shows the country is expanding fast, creating wealth management opportunities. According to Credit Suisse Research Institute’s Global Wealth Report 2017, total household wealth in the Philippines grew by 10.7 per cent per annum since 2000 to reach $662 billion in 2017. Adults with net wealth of over $1 million also grew by over 13 per cent to reach 38,000, while the number of ultra-high net worth individuals with more than $50 million in net wealth also grew 13 per cent over the same period to over 400. These wealth segments are forecast to expand by more than 10 per cent a year in the next five years, the Institute has predicted.

The Institute also argues that as a high proportion of businesses are run by first- and second-generation families, there is a strong potential for wealth management services. The Philippines ranks 11th globally in terms of the number of family-owned businesses, and sixth within Asia Pacific ex-Japan in terms of average market capitalisation at $5.6 billion.