Know About Business Leaders' Views on Financial Planning & Wealth Management with Citi Singapore's Survey.Know About Business Leaders' Views on Financial Planning & Wealth Management with Citi Singapore's Survey.

Business Times-Citibank Outlook Survey 2019

How top executives think

To get a sense of business leaders'
views on Singapore's investment
climate in 2019,
The Business Times and Citibank Singapore polled 104 top executives on their thoughts in this
second annual survey. Here is a summary of their responses.

3 Key Takeaways

Trade tensions

between the US and China is the top market concern and challenge in 2019

Hot business sectors

to watch out for in 2019 include artificial intelligence, fintech and health

Southeast Asia tops the list

of markets for best opportunities for growth and investment, even as respondents expect the overall global investment environment to be less stable

Consumption and employment

About half of respondents felt that the consumption trend and employment market in Singapore would remain unchanged in the first half of 2019.

Consumption trend
Consumption
trend
19.2%
48.1%
32.7%
Consumption
trend
Employment market
Employment
market
16.3%
51.0%
32.7%
Employment
market
Better SAME Worse

Likelihood of recession

About three quarters are either neutral or do not expect a recession to happen in 2019.

Likelihood
Likelihood
9.6%
23.1%
43.3%
13.5%
10.6%
Likelihood
32.7%
 
24.1%
1- very unlikely 2-fairly unlikely 3-neutral
4-fairly likely 5-very likely

Key market concerns for 2019

Trade tensions is the key market concern, followed by rising interest rates and slowing global growth.

Trade tensions
78.8%
Rising interest rates
54.8%
Slowing global growth
52.9%
Increase in populist policies
34.6%
Expensive valuations
12.5%
Others
1.0%

Politics and trade

Most felt that global political stability and the international trade situation would worsen in 1H19.

group
International trade situation
International
12.5%
23.1%
64.4%
International
trade situation
Global political stability
Global
10.6%
38.5%
51.0%
Global political
stability
better same worse

Top geopolitical challenges in 2019

US-China trade tensions was deemed as the biggest challenge in 2019 by the overwhelming majority.

US-China trade tensions was deemed as the biggest challenge in 2019 by the overwhelming majority.

glass
1 - Others 2 - US-China trade tensions 3 - South China Sea territorial claims 4 - Brexit

Asset classes to invest in

The key asset classes that respondents would be interested to invest in are equities, real estate, and bonds

Equities
66.3%
Real Estate
41.3%
Bonds
40.4%
Private equities
11.5%
Liquid alternatives*
9.6%
Hedge funds
8.7%
All the above
14.4%

*Eg. Long/short strategies, commodities, fine art etc

Investment environment

Majority expect the investment environment to be "fairly or very volatile" in 2019

Key investment themes

Emerging markets, the Internet of Things, and robotics top the list of investment themes likely to dominate in 2019

Emerging markets
55.8%
Internet of Things
53.8%
Robotics
49%
Environmental, social and governance
32.7%
One Belt One Road
28.8%

Impact on readiness to invest

Some 15% claimed that their readiness to invest was not affected by factors such as the employment market, consumption trend, global political stability and the international trade situation.

Impact
Impact
45.2%
39.4%
15.4%
Impact
AFFECTED NEUTRAL NOT AFFECTED

Why not affected?

Take long term view when investing
11
Investment is well diversified
2
You believe in market timing
1
All the above
3

(n=16)

Best market for growth and investment in 2019

Southeast Asia tops the list of markets for growth and
investment opportunities, with China coming in a far second

market
South East-Asia
52.9%
China
23.1%
North America
10.6%
India
4.8%
Others
3.8%
Latin America
2.9%
All not looking good
1.0%
Europe
1.0%

Wealth management

Most have worked out their wealth and financial goals in the past year, with the majority planning to grow their wealth. About half of them use a combination of talking to a relationship manager and online advisory tools to track their goals.

Q: Have you set wealth and financial goals in the last 12 months?

Q: What kind of goals have you set?

To grow my wealth
82.7%
To buy a property
26.7%
To semi-retire or retire
25.3%
Child's education
12.0%
Others
1.3%

Q: How do you track your goals?

Respondent profile

A total of 104 interviews were conducted with CEOs in November 2018

group