:00:09. > :00:15.Who are the next billionaires? Right now, most are found in America but
:00:16. > :00:18.within a decade, Asia will be the place where there will be more
:00:19. > :00:27.super`rich than anywhere else in the world. In this island of Singapore
:00:28. > :00:33.weather megarich live, I'm Linda Yueh and we are Talking Business. ``
:00:34. > :00:54.where the megarich live. A warm welcome to the programme. As
:00:55. > :00:57.the world economy is increasingly powered by emerging markets, there
:00:58. > :01:07.is greater prosperity found all around the world. So, who are the
:01:08. > :01:11.new billionaires? Young, rich and talented. As the world changes and
:01:12. > :01:18.the money moves from West to East, so will the people who make a
:01:19. > :01:22.billion. Today, there are just under 1700 billionaires in the world.
:01:23. > :01:27.Within ten years, there will be more than 2300. In the United States, the
:01:28. > :01:36.number of billionaires will grow by up when to 1% but China's lyonnaise
:01:37. > :01:39.will grow at four times that break. `` 21% but China's lyonnaise will
:01:40. > :01:58.grow. `` billionaires. If you want to marry one of these
:01:59. > :02:02.men, you better be quick. 95% are already married and 87% of the women
:02:03. > :02:06.are already married. Two thirds of the ultra`wealthy make the money
:02:07. > :02:12.themselves rather than inheriting it. So, with the vast majority of
:02:13. > :02:17.rich people making the money themselves, new technology could
:02:18. > :02:22.mean it is easier than ever to make your own billion. Asia has seen its
:02:23. > :02:31.share of the self`made rich rise rapidly. This man said he plans to
:02:32. > :02:42.give his way `` wealth away to charity. 20 years ago, he returned
:02:43. > :02:47.from California to China. He is now the chief executive of food and
:02:48. > :02:53.supply chain, bomber. I caught up with him to find out how he set up
:02:54. > :03:01.his business empire. `` supply chain conglomerate. They had such a great
:03:02. > :03:07.vision of China and they saw the potential of growth in China. They
:03:08. > :03:14.said since you were born and raised there, why don't you go back first?
:03:15. > :03:19.Of course, it is very attractive. They were going to back me up with
:03:20. > :03:23.whatever money I needed to come and invest in China. It took me quite a
:03:24. > :03:30.while to figure out whether I should go or not. Finally, I decided yes.
:03:31. > :03:36.It took me a month to decide it. The fact is that they were correct. Is
:03:37. > :03:41.it easier these days for others to come into China, set up a business
:03:42. > :03:49.and even become a billionaire? Is that even possible for non`Chinese?
:03:50. > :03:53.I think it is easier than 20 years ago because a lot of the
:03:54. > :03:58.infrastructure is already in place. The culture has changed a lot, it is
:03:59. > :04:02.more in favour of business. So, the environment has changed dramatically
:04:03. > :04:07.in the last 20 years. I think this is a better time than 20 years ago.
:04:08. > :04:12.20 years ago, coming back to China to do business was actually tougher.
:04:13. > :04:18.If you were well developed in the United States or Europe, coming back
:04:19. > :04:22.to China back then was not easy. You had to deal with a lot of situations
:04:23. > :04:28.that were tough, rough situations. Today, it is more polished. But the
:04:29. > :04:31.weight of doing business and the strategy is totally different
:04:32. > :04:37.because the environment of the market has changed. So, you need to
:04:38. > :04:41.have a different strategy. Is that the biggest piece of advice you
:04:42. > :04:46.would give for someone looking to go to China and set up the business but
:04:47. > :04:50.themselves? Coming back to China, you have to be really aware of what
:04:51. > :04:55.you are going to facing China. It is going to take many steps before it
:04:56. > :04:58.will get to there and entrepreneurship is very important.
:04:59. > :05:04.You have to work very hard, beep every diligent and you have to have
:05:05. > :05:08.a good strategy and have a very good network, working with Chinese people
:05:09. > :05:13.and know the culture. There are a lot of things in there to make the
:05:14. > :05:17.success happen. It is not just coming in and expecting a good
:05:18. > :05:23.return in the first year. What was the biggest challenge you faced?
:05:24. > :05:28.Human resources. In the last 20 years, it has always been very
:05:29. > :05:34.difficult. To build a strong team, a good bunny with good talent. That is
:05:35. > :05:51.my challenge. `` a good team with good talent. At the same time, there
:05:52. > :05:54.is global exposure. These kind of people are difficult to find. I
:05:55. > :05:59.always build this is the biggest challenge. Is there something about
:06:00. > :06:04.operating a system still run by the Communist Party? What are the
:06:05. > :06:10.particular challenges that poses to an entrepreneur? In the last ten
:06:11. > :06:16.years, it is a very big challenge. China was taking gone a bigger role
:06:17. > :06:23.for the state owned enterprises. On the other side, government playing
:06:24. > :06:30.not such a big role. Now, with the third session of the 19th coming
:06:31. > :06:33.years party committee commission happening at the end of last year,
:06:34. > :06:41.China has set up a different policy now. It is for the Chinese private
:06:42. > :06:45.sector to revive again, or any private companies can have better
:06:46. > :06:51.opportunities because the Chinese government is bringing government
:06:52. > :06:58.role away from the business. They are giving great opportunities for
:06:59. > :07:03.private companies now, today. So, you see in the next ten years, the
:07:04. > :07:11.private sector is will be in a better position in China with great
:07:12. > :07:16.opportunities,. You mentioned the importance of the social network.
:07:17. > :07:21.How important our connections for business in China? Is it different
:07:22. > :07:27.than other countries? You have worked in the US. Yes, the
:07:28. > :07:31.collections in China are not just connections with your peer companies
:07:32. > :07:35.or the companies in your own industry. You have to be connected
:07:36. > :07:38.with the government, you have to be connected with a lot of other
:07:39. > :07:42.industries as well. In order to see opportunities, especially today,
:07:43. > :07:50.this world is all about mobile internet, there is a lot of
:07:51. > :07:54.connectivity is in place. It is quite different from the United
:07:55. > :07:59.States. The US, when you say my connection, it is very much in the
:08:00. > :08:05.industry say `` in the specific industry. But you are in the closed
:08:06. > :08:10.market and you may not be able to see the bright opportunities outside
:08:11. > :08:14.of the system so that you need to think out of the box in China, in
:08:15. > :08:19.many ways. This connection is again to do very much with the government
:08:20. > :08:24.as well as companies within the system or outside of the system.
:08:25. > :08:32.Finally, you are self`made. Do you envy those who inherit their
:08:33. > :08:38.business, their wealth? There are a lot of family run businesses in
:08:39. > :08:43.Asia. No, I don't think so. I don't envy those families. I actually feel
:08:44. > :08:50.very worried that the wealth that might wife and I are able to build
:08:51. > :08:53.in the last 20 years, how is this going to affect our children? We
:08:54. > :08:59.just don't want out with Jordan to take our money and squander the
:09:00. > :09:07.money. `` we don't want our children to take our money. Historically,
:09:08. > :09:13.people do that in China. The talented kids and real entrepreneurs
:09:14. > :09:18.should start from nothing, always start from nothing. I hope that our
:09:19. > :09:25.Witchell drunk and start from nothing.
:09:26. > :09:29.What has caused the rapid growth in the super rich? Where are the new
:09:30. > :09:37.billionaires expected to come from? There will be more in Asia than
:09:38. > :09:44.America and Europe within a decade. The ultra rich Asia are expected to
:09:45. > :09:53.outnumber any other region. The growth breaks reflect the rise of
:09:54. > :10:03.wealth in the emerging well. `` the growth rates.
:10:04. > :10:11.The growth of the super`rich in Asia, the decayed Tyler ``
:10:12. > :10:20.particularly China and India is another indication of the shift of
:10:21. > :10:24.economic weight from West to East. Is the rapid growth of Asian
:10:25. > :10:29.economies creating a whole new set of billionaires? With me to discuss
:10:30. > :10:37.what is causing the rapid rise in wealth in Asia and the implications
:10:38. > :10:49.for inequality are attacks paved `` a spokesman from Deloitte, and a
:10:50. > :10:54.spokesman from Wealth`X. What is causing the rapid growth of
:10:55. > :10:58.billionaires? We have a lot of start`ups with very dynamic
:10:59. > :11:02.entrepreneurs who are making a lot of money because there are no
:11:03. > :11:06.constraints, there was no bureaucracy in the same way as in
:11:07. > :11:13.Europe. There is a huge market for them to sell to. This is generating
:11:14. > :11:17.profit. Rachael, you are an entrepreneur, is that one of the big
:11:18. > :11:20.changes in Asia? That with growth of the economy is, people can go in and
:11:21. > :11:28.create their own businesses? the economy is, people can go in and
:11:29. > :11:32.create their In the past there has been massive growth in China and
:11:33. > :11:37.China has been the workshop of the world for some time now and anyone
:11:38. > :11:43.who has actually capitalised on that has done well for themselves. Is
:11:44. > :11:48.huge part of it is the growth in China. This sizeable trend, is it
:11:49. > :12:11.something we haven't seen before? A number of things. We are a
:12:12. > :12:14.research company. In our research, we found that this is going to be
:12:15. > :12:18.the first generation that has grown up without a world war. This
:12:19. > :12:20.generation's behaviour and relationship towards money is very
:12:21. > :12:22.different from their parents' generation. In their parents'
:12:23. > :12:24.generation, I see it with my parents, you squirrel away money for
:12:25. > :12:27.a contingency. The younger generation today is fearless.
:12:28. > :12:29.Especially where they see opportunity and they are optimistic
:12:30. > :12:33.about the future. The future being growth rates. Let me try this out,
:12:34. > :12:42.if I fail, I can always get a job. It is that fearlessness of taking
:12:43. > :12:47.risk that will make the new entrepreneurs. In terms of profiles
:12:48. > :12:50.of billionaires, how is that playing into the profile of who we should
:12:51. > :12:53.expect to see in the coming years? Of course you will have people who
:12:54. > :12:56.inherit money, but you will also have those that inherit the money
:12:57. > :13:00.and take it to another level. Inherited and self`made, as it were.
:13:01. > :13:03.What we are finding in China, for example, the average age of the
:13:04. > :13:06.billionaire is about 10 to 12 years younger than their counterparts in
:13:07. > :13:09.Europe. In the grand scheme of things, that is huge. 12 years is a
:13:10. > :13:18.long time in someone's business life. We are finding them younger
:13:19. > :13:29.and younger in Asia. That is because there is a new generation of
:13:30. > :13:32.entrepreneur that is younger. You are one of the new generation of
:13:33. > :13:36.entrepreneurs. In the kind of cohort that you're working with, is what
:13:37. > :13:39.they are observing in terms of the trends and what you're observing as
:13:40. > :13:41.you're doing business, are there some people who have inherited
:13:42. > :13:50.wealth, taking it and starting a new business, what is the characteristic
:13:51. > :13:54.you are finding? I find that the entrepreneurs today think
:13:55. > :13:56.differently to those in the past. In the past, entrepreneurs tended to
:13:57. > :13:59.follow the rules of the game before they tested the waters. Whereas
:14:00. > :14:04.entrepreneurs today, they are more risk`taking. They courageously take
:14:05. > :14:11.the plunge, even without any prior business experience. I find that
:14:12. > :14:20.entrepreneurs are more daring. In terms of the way that they do
:14:21. > :14:30.business, they are less rigid. What are the other trends in billionaires
:14:31. > :14:32.that we should be expecting? The older generation of billionaires
:14:33. > :14:38.tend to focus more on philanthropy. Contrary to popular belief, very
:14:39. > :14:43.wealthy people also die! If you talk to someone who has led a good life,
:14:44. > :14:46.they want to leave a legacy. They want to leave a way of being
:14:47. > :14:57.remembered. That is by way of philanthropy. You have a movement
:14:58. > :15:10.right now of giving back, of the giving pledge that was initiated, I
:15:11. > :15:15.believe, by Bill Gates. They are billionaires. These are people, when
:15:16. > :15:17.they have their foundations, these are funds that will rival
:15:18. > :15:27.governments' budgets. Will we see that in Asia? We will see it. When
:15:28. > :15:34.we get up there in age, when the next generation says, my father has
:15:35. > :15:38.worked very hard, I have not had to work as hard for this money. You
:15:39. > :15:45.will find that, in due course. I am not saying it is going to be next
:15:46. > :15:49.week or next year. What you said, that is going to be worrying. My
:15:50. > :16:01.father has worked hard, I do not have to work as hard? Is that going
:16:02. > :16:05.to be an issue? In Asia, it is not an issue at all, because one of the
:16:06. > :16:08.primary concerns of the patriarchs, the generation that we are seeing
:16:09. > :16:11.disappearing is that their children are actually being adequately
:16:12. > :16:13.trained overseas. That is why their tax exposure also usually has a US
:16:14. > :16:20.element, which is very interesting for the tax advisor. That apart, it
:16:21. > :16:23.also shows that there are three or four children that are actually very
:16:24. > :16:36.well`educated and some of them have the entrepreneurial spirit, but they
:16:37. > :16:46.have a much higher base than their father had actually started from.
:16:47. > :16:49.Because of the education? The education, the capital and the
:16:50. > :16:52.backing. If there is a family discussion about growth in the
:16:53. > :16:55.family, who is going to do what, there might be one guy who is
:16:56. > :16:57.actually coming from a Singapore family who is in charge of expanding
:16:58. > :17:01.into China, another one might be looking after the finances and
:17:02. > :17:03.building a stronger supply chain on the procurement side. It is the
:17:04. > :17:06.multiplier of educated people within the family that will guarantee that
:17:07. > :17:08.this principle of three generations and everything is gone will not
:17:09. > :17:20.continue. What do you think, Rachel? When you see the children who have
:17:21. > :17:24.inherited money in family businesses, is that what you're
:17:25. > :17:32.finding? That they are well equipped to do this? Maybe they want to party
:17:33. > :17:36.a little bit? There are those that want to party and squander their
:17:37. > :17:38.parents' money. You have those where the parents taught them the value of
:17:39. > :17:42.money. You have two sides. When you're born rich, it is easy when
:17:43. > :17:45.you have the backing of your family. You do not need to work so hard.
:17:46. > :17:48.They are not motivated to earn money. They have not experienced the
:17:49. > :17:52.pressure to want to make money. I think it is easy for them to think
:17:53. > :18:03.about having fun instead of just working for the family. The other
:18:04. > :18:17.issue this raises is if you have more rich people, it does create a
:18:18. > :18:20.sense of inequality? Everyone is worried about that around the world.
:18:21. > :18:22.Is one of the solutions something like a wealth tax to try and
:18:23. > :18:34.redistribute some of this wealth? What do you think? I think taxes
:18:35. > :18:38.tend to have some sort of ignition triggering it. People who you want
:18:39. > :18:41.to tax are disappearing and you cannot track where they are. You
:18:42. > :18:44.have lots of entrepreneurs coming to places like Hong Kong, Australia,
:18:45. > :18:59.Singapore. Countries where there is no wealth tax. You know that many
:19:00. > :19:02.countries have had wealth taxes. Some of them still do, like the US.
:19:03. > :19:06.There will never be a global wealth tax. There might be a global
:19:07. > :19:08.transparency of what the people have, but there will always be some
:19:09. > :19:16.sort of jurisdiction that has to formulate the rules. Do you agree?
:19:17. > :19:19.Yes, you know, you're always going to have inequality in wealth. The
:19:20. > :19:22.issue is when the inequality between the superrich and the not superrich
:19:23. > :19:26.is when it is so vast that it borders on revolt or revolution.
:19:27. > :19:28.When you look at things like absolute poverty, the world has made
:19:29. > :19:35.great progress on that, however, relative poverty is extremely
:19:36. > :19:46.visible in this day and age. People know how the rich spend their money
:19:47. > :19:50.and what they spend it on. Everyone feels poor compared to their
:19:51. > :19:53.neighbour who has got yet another car or a bigger house. Relative
:19:54. > :19:55.inequality will always exist. And it becomes more visible today, with
:19:56. > :19:58.things like jets and yachts, and boats, and television shows that you
:19:59. > :20:11.can see anywhere in the world. The Internet, I can watch any programme.
:20:12. > :20:15.I can see what I have or do not have against my counterpart in another
:20:16. > :20:22.country. That also creates strife. Strife between the haves and
:20:23. > :20:28.have`nots. The important point is what you have mentioned before,
:20:29. > :20:31.philanthropy. In the US, there is now a culture, there has recently
:20:32. > :20:36.developed a culture of giving back and donating. Founding certain
:20:37. > :20:39.projects, like the Bill Gates' Foundation. People try to donate
:20:40. > :20:42.money, publicly, to interesting projects. If that goes into fashion
:20:43. > :20:55.in Asia, I think that will take out a bit of the movement in the
:20:56. > :21:02.inequality discussion. I'm going to finish with this. You have all dealt
:21:03. > :21:14.with people who are superrich. What is the most extravagant thing that
:21:15. > :21:18.you have seen? It has got to be things like a Jacuzzi in a private
:21:19. > :21:24.jet, that sort of stuff. In a private jet? Yes, not a Jacuzzi or a
:21:25. > :21:27.private jet, a Jacuzzi within the private jet. If I ever get that
:21:28. > :21:32.rich, I will tell you why that is interesting. Why do you need a
:21:33. > :21:36.Jacuzzi in a private jet?! What about you? For myself, I know
:21:37. > :21:39.someone who bought a private island, and he converted part of it into a
:21:40. > :21:42.theme park. His own personal complex, an area where you can park
:21:43. > :21:47.your private jet and all that. It is pretty extravagant. Thank you very
:21:48. > :21:56.much indeed. Asia is forecast to have the most billionaires within a
:21:57. > :22:02.decade, more than in any other region as economies develop. It is
:22:03. > :22:05.not just in Asia, but also other emerging countries. As more
:22:06. > :22:08.billionaires are self`made, we will have to rethink the implications for
:22:09. > :22:11.wealth and equality. Over the coming months, our teams around the world
:22:12. > :22:14.will be finding out who might be in the next generation of the megarich.
:22:15. > :22:17.Join us across the BBC, online, on TV and on radio. Meet the
:22:18. > :22:20.billionaires and join us next time for more Talking Business, with me
:22:21. > :22:48.Linda Yueh. Good evening. We got close to 25
:22:49. > :22:57.degrees today across parts of Dorset. There were some showers
:22:58. > :23:01.around despoiling procedures. This zone of cloud extends down from
:23:02. > :23:07.Scotland into Wales. There are some showers at the moment. The showers
:23:08. > :23:08.are drifting slowly south. Some will continue through the