Thailand expected to see a big jump in number of millionaires in next 5 years

The UBS report, now in its 15th edition, provides comprehensive insights into household wealth and prosperity trends across the globe.

It highlights a notable rebound in global wealth growth, which reached 4.2% in 2023, offsetting the slump experienced in 2022. When adjusted for inflation, global wealth grew by an impressive 8.4% last year.

According to the report's forecasts, Thailand is expected to see its millionaire population surge by 24% by 2028, increasing from 100,001 to 123,531 individuals. This projected growth places Thailand among the top 10 countries globally for millionaire expansion, outpacing many developed economies.

Leading the pack in millionaire growth is Taiwan, with a projected 47% increase, followed by Turkey (43%), Kazakhstan (37%), Indonesia (32%), and Japan (28%). Other countries in the top 10 include South Korea, Israel, Mexico, and Sweden.

The report also sheds light on broader wealth trends:

• Asia-Pacific has experienced the fastest wealth growth since 2008, with a 177% increase.
• The United States currently has the most USD millionaires, followed by China and the United Kingdom, with the US accounting for 38% of all global millionaires. 
• By 2028, 52 out of 56 markets analysed are expected to see an increase in the number of millionaires.
• Emerging economies account for over 30% of global wealth, which will increase to 32% by 2028.
• Among the total 56 territories, the Netherlands and the United Kingdom are projected to experience a 4% and 17% decline in wealth, respectively.
• The “World Wealth Pyramid 2024” also projected that the combined wealth of the world's 14 richest people will be worth nearly $2 trillion  (about 72 billion baht).

UBS researchers noted that wealth mobility is generally upward, with one in three individuals moving to a higher wealth band within a decade. This trend suggests increasing opportunities for wealth accumulation across various economic strata.

Another significant finding is the projected intergenerational wealth transfer. 

Approximately $83 trillion is expected to change hands within the next two decades, equivalent to the value of a year's global economic activity. Interestingly, about $9 trillion of this wealth is likely to move horizontally between spouses before passing to the next generation, potentially increasing the wealth held by women due to their higher life expectancy.

As Thailand prepares for this projected increase in millionaires, the country may need to adapt its economic policies and financial services to cater to a growing wealthy population. This trend could have significant implications for various sectors, including luxury goods, real estate, and investment services, the report said.

The UBS Global Wealth Report 2024 provides valuable data for policymakers, investors, and businesses looking to understand and capitalise on global economic shifts and wealth distribution patterns. As Thailand rises in the ranks of millionaire growth, it solidifies its position as an increasingly important player in the global economic landscape, UBS said.