Last week, American business news outlet CNBC reported that Singapore’s attractiveness as a wealth hub was weakening, with applications from Chinese clients to set up family offices or relocate wealth to the city state currently dropping by 50 per cent compared with 2022, according to data from a firm.
The report cited concerns from the well-heeled over invasive anti-money-laundering checks and more onerous requirements for permanent residence and tax incentives. It noted the comparative ease of setting up shop at other destinations such as Hong Kong, Dubai and Japan.
Single-family offices are one-stop firms that manage the finances of the wealthy.
The number of single-family offices in Singapore has been climbing over the past few years, according to official data. There were more than 2,000 last year, an increase of above 40 per cent from 1,400 at the end of 2023 and from 1,100 in 2022. There is no publicly available data on the offices’ origin countries.
In the wake of the S$3 billion (US$2.4 billion) money-laundering bust in Singapore in 2023, where 10 people from Fujian, China, were hauled to court for using their ill-gotten gains to live lavish lifestyles in the city state, the Monetary Authority of Singapore has tightened anti-money-laundering regulations.
