How Asia’s ultra-rich are investing and where wealthy Chinese are migrating, according to Maybank Singapore CEO

Ultra-high-net-worth people are “always looking at both financial instruments as well as physical assets in real estate and in precious metal,” Alvin Lee said in an interview. “Gold’s rise in price is testament to the fact that it’s a good store of value. It continues to be very appealing,” he said.

While gold is off its record highs from early this year, its price of around $4,400 per ounce is still well elevated versus history, with Goldman Sachs forecasting the yellow metal to reach $4,900 by year-end on the back of central bank buying.

As Asia’s richest people buy into precious metals, among the oldest investments in history, they’re also willing to try much newer and more innovative concepts. That’s coming as they “are very focused” on the transfer of wealth from older to younger generations, Lee said.

“increasingly, we do see the wealthy being very open to new asset classes, whether it’s digital assets or cryptocurrencies,” Lee said, adding that the interest is coming primarily from the younger people.

According to the Hurun global rich list published in March, China has the highest number of billionaires at 1,110, surpassing the U.S. at 1,000.

“We see more Chinese buying up real estate for personal use as well as for their businesses in Malaysia, Kuala Lumpur is a beneficiary to that. I think Malacca is as well. Penang has always been quite appealing to the Chinese,” Lee said, referring to cities and regions in Malaysia.