HONG KONG – China will see the biggest net outflow of millionaires globally in 2023 as the nation’s wealth growth slows, Henley & Partners said in a report on Tuesday.

The advisory firm estimates China will lose 13,500 high-net-worth individuals with investable wealth of more than US$1 million (S$1.34 million), followed by India with an exodus of 6,500, and Britain at 3,200, according to the Henley Private Wealth Migration Report.

President Xi Jinping’s drive for “common prosperity” means China’s entrepreneurs have been flocking to more welcoming places like Singapore or setting up a backup plan in recent years, while prolonged Covid-19 restrictions have added to reasons for the wealthy to live abroad.

“General wealth growth in China has been slowing over the past few years, which means that the recent outflows could be more damaging than usual,” Mr Andrew Amoils, head of research at wealth intelligence firm New World Wealth, said in the report.

China’s economy grew strongly from 2000 to 2017, but wealth and millionaire growth in the country has been negligible since then, he wrote.

Meanwhile, Britain’s exodus of high-net-worth individuals is likely to double, making it the third-biggest loser of millionaires globally, above Russia in fourth place, according to the report, which cited issues such as the debate over non-domiciled taxpayers and Brexit.  

On the other hand, Australia is expected to surpass the United Arab Emirates to become the top country to attract the inflows of high-net-worth individuals, with Singapore in third place.

About 5,200 millionaires will move to Australia in 2023.

The figures focus only on high-net-worth individuals who have moved – namely, who stay in their new country for more than six months a year, according to the report. BLOOMBERG