A new report predicts that Singapore will become the biggest offshore private banking market by 2020, highlighting why the city-state is attracting so much attention in the industry.

Singapore is poised to become the largest offshore private banking market by 2020, says new research by Timetric. 

In the "Asian Cities Wealth Book 2012" report by the online data, analysis and advisory services firm, Singapore emerged as the fastest growing wealth centre worldwide at present, with some $550 billion in assets under management as of the end of 2011. The city's AuM stood at only around $50 billion in the year 2000. 

The radical change may be attributed to the movement of funds away from Switzerland, Luxembourg and the Caribbean - a trend that is expected to continue in the next seven years, says Timetric. Come 2020, Singapore has been predicted to outdo all offshore banking markets.

Asia-Pacific's Growing Wealthy Numbers

The number of high net worth individuals in the Asia-Pacific region increased by 29 per cent from 2 million to 2.6 million between 2007 and 2011. Even as the effects of the global financial crisis lingered, the wealth of HNW individuals in the region grew 30 per cent from $8.1 trillion in 2007 to $10.6 trillion in 2011. During this period, the worldwide number of HNW individuals was down 0.3 per cent. 

As of 2011, there were 18,210 ultra high net worth individuals in Asia-Pacific. This growth has been forecast to continue with a 62 per cent rise between 2011 to 2016 to 38,650.

On another note, while Singapore is touted to lead the world as a centre for wealth management businesses, it is China that is accounting for the largest number of HNW individuals in the Asia-Pacific region. 2011 figures show that there are 1.28 million HNW  individuals in the country, accounting for 49 per cent of the entire region's total. Australia comes second with 274,000, followed by India with 251,000, Hong Kong with 185,000, South Korea with 157,000 and Singapore with 151,000.

In terms of ultra HNW  individuals, or those with at least $50 million in investable assets, China still leads with 7,905, followed by Singapore with 3,154, Hong Kong with 2,560 and Australia with 2,460. When it comes to cities, Singapore finally takes top spot with 3,154 UHNW  individuals, followed by Hong Kong, Beijing, Seoul, Taipei and Shanghai.

The Trimetric report covers 13 Asia-Pacific countries and focused on UHNW  individuals populations and growth rates from 2007 to 2011 in over 100 cities in the region.