About 5,000 Asian millionaires left their homeland for Canada last year with Vancouver alone receiving some 2,000 of the global ultra-rich says a new report.
San Francisco, Seattle and Vancouver all experienced large millionaire inflows from China and South East Asia, said the report.
According to the report by New World Wealth, some 4,000 wealthy Indians changed their domicile in 2015, while France saw the maximum outflow of millionaires with as many as 10,000 leaving.
France was followed by China, with 9,000 leaving the country while Italy stood at third with 6,000 exits.
The report said France is being heavily impacted by rising religious tension, especially in urban areas. "We expect that millionaire migration away from France will accelerate as these tensions escalate," it said.
In terms of millionaire inflows, Australia topped the chart with 8,000 shifting base there, followed by the US (7,000) and Canada (5,000) in the second and third place respectively.
"The outflows from India and China are not particularly concerning as these countries are still producing far more new millionaires than they are losing," the report said.
This causes a massive wealth drain in India, media in India reported.
In 2014, it was counted that Mumbai has more billionaires than Tokyo; but going by the rate of wealth drain, very soon we will lose this pride.
Interestingly, this new report on exodus of the rich perfectly matches with our earlier report on the rich leaving India and choosing another country. Wall Street Journals reported that 43,400 Indian millionaires have left India in the last 10 years; whereas New World Wealth said that in the last 14 years, 61,000 Indian millionaires have ditched their motherland in the last 14 years.
Why PM Modi’s Make in India and Digital India campaigns are failing to retain their best talent? Should the Government do something else to stop this wealth drain, a commentator asked.
Significant highlights from the Report
• Sydney is the city which received maximum number of new millionaires in 2015. 4000 or 4% new millionaires arrived in Sydney in 2015; Another Australian city Melbourne is ranked #2 as it received 3000 new millionaires. Tel Aviv was ranked #3; Dubai #4 (2000 new millionaires); San Francisco #5 and Vancouver was ranked #6.
• Australian cities received maximum inflow of millionaires from China, Europe, UK, USA and South Africa
• Tel Aviv received maximum millionaires from France
• USA received maximum inflow from Asia and China
• Dubai is attracting the millionaires from North Africa, notably Egypt, Algeria, Morocco and Turkey
• In London, 3000 new millionaires were formed, while 2500 left the city. Interestingly, those who left the city were UK citizens, while those who entered were Non-European citizens
• Paris lost 6% of their millionaires in 2015; while Rome lost 7%; Chicago lost 2% and Athens in Greece lost massive 9%
• Overall, top 5 countries where maximum millionaires moved in are: Australia (8000 new millionaires); USA (7000); Canada (5000); Israel (4000); UAE (3000)
• Top 5 countries which lost maximum millionaires are: France (10,000 millionaires); China (9000); Italy (6000); India (4000); Greece (3000)
Why do millionaires leaving a country matter?
• Bad sign - millionaires are often the first people to leave. They have the means to leave unlike middle class citizens.
• Money outflow – when millionaires leave a country, they take large amounts of money with them which impacts negatively on the local currency, local stock market and local property market.
• Lost jobs - millionaires employ large numbers of people. Around 30% to 40% of millionaires are business owners.
• Lost revenue and tax – millionaires spend a lot of money on local goods and services and pay a large amount of income tax.
• Pensions & benefits - millionaires are not reliant on state pensions and benefits, which makes them a relatively easy and cheap group to please.
• Resilient – millionaires are resilient to economic downturns and can keep an economy going during tough times.
• Brain drain – millionaires are normally highly skilled and highly educated. Many are also innovators.