The inaugural edition of «Wealth Report Thailand» reveals that holding an opulent wedding in Bangkok is cheaper than most cities.

SCB Julius Baer's maiden «Wealth Report Thailand,» released on Wednesday, focuses on the wealth management landscape in Thailand and also looks at Thai high net worth individual (HNWI) clients’ attitudes towards wealth and investing, both onshore and offshore.

«The Thai wealth market has grown tremendously in recent years and this trend is expected to continue as the overall population grows wealthier. We see vast potential for the market as compared to more mature markets in the region, as Thai HNWIs grow more sophisticated and regulations and policies are liberalized,» said Jiralawan Tangitvet, chief executive officer of SCB Julius Baer, in a media statement.

Luxury Spending Trends

In addition, the report also reveals the attitudes and luxury expenditure trends of Thai HNWIs, and focuses on Thailand’s ranking in the 2018 Julius Baer Lifestyle Index, which is based on a basket of 22 luxury goods and services that represent discretionary purchases of HNWIs in the region.

The survey findings indicate that Thai HNWIs have an overall preference for wealth creation over wealth preservation. They share a similar portfolio allocation to global HNWIs in liquid assets such as stocks, bonds, and funds. However, the majority of these assets are in onshore investment products.

Allocation to Real Estate and Alternatives Differ

Thai HNWIs are not as invested in Real Estate and Alternatives with a respective portfolio allocation of 7 percent and 6 percent in these asset classes compared to 17 percent and 9 percent among global HNWIs. Other significant findings include:

  • Thai HNWIs have a similar portfolio allocation to liquid assets (stocks, bonds, and funds) as their global counterparts albeit mostly onshore. However, they are less invested in real estate and alternatives.
  • Slightly less than half of the respondents hold at least one offshore investment. Of these, equities and fixed income are most widely held in investment portfolios, followed by funds and direct real estate.
  • Changing customer behavior towards investment, low penetration of investment products (especially offshore) and tax and regulatory changes underpin the opportunities to tap on the fast-growing Thai wealth market.
  • Bangkok maintained its status as a relatively inexpensive city for shoppers, keeping at 7th place among 11 Asian cities from 2016 to 2018 in USD terms.
  • Luxury goods are more expensive in Thailand due to excise taxes on some imported luxury products, whereas luxury services are generally well-priced due to lower operating costs in Thailand.