Singapore’s institutional investors are leading the Asia-Pacific (APAC) region with a 23.8% allocation to private markets, according to Morningstar’s 2026 Asset Owner Perspectives Survey. Despite this, Hong Kong is gaining momentum, with 68.6% of its asset owners increasing their private-equity exposure over the past year, compared to 48.6% in Singapore.
The survey highlights that diversification is a key driver for Hong Kong’s shift towards private markets, with 81% of respondents citing it as a reason, surpassing Singapore’s 70% and the global average of 56%. This trend reflects a broader shift in investment strategies across the region.
Additionally, the survey reveals changing attitudes towards environmental, social, and governance (ESG) factors. In Singapore, the importance of ESG in investment decisions has decreased, with only 44% considering it more material in 2026 compared to 53% in 2025. Similarly, Hong Kong saw a decline from 56% to 42% over the same period. However, the percentage of Singaporean investors recognising the need for energy management to include ESG considerations rose from 44% in 2025 to 59% in 2026.
The survey also examined the materiality of various global issues. Singaporean investors rated the Middle Eastern conflict and trade disputes as highly material, with 41% identifying these as significant concerns, the highest among respondents. In contrast, only 15% of Singaporean investors viewed the current US administration as a material issue.
These findings underscore the evolving landscape of investment strategies in APAC, with a growing emphasis on diversification and a nuanced approach to ESG considerations.
