With Hong Kong’s increasing central governmental regulations and negative overall business sentiment arising from its Covid-related policies, Chinese HNWIs (High Net Worth Individuals) have migrated in large mass to its neighbour, Singapore, over the past few years. In fact, the number of new family offices established in Singapore had increased from the past three years from 27 to 2018 to 453 in 2021. Currently, there are nearly 700 total family offices established in Singapore.
Ultimately, these HNWIs’ priorities are on their personal and business succession plans and Singapore has emerged as the rising star of the region in the Asia private wealth market. According to Rachel Yoo, counsel for Corey OIsen’s Trusts and Private Wealth Practice, “Their needs have extended from personal needs to family, corporate and social needs so they will have increased requirements for external advisory services and expect to have a one-stop shop experience. For wealthy inheritors, we understand that they start with property and insurance, and then gradually expand to family trusts.”
Yoo continued that often in Singapore, newly-rich Chinese NHWIs would look towards for this wealth management advice and structuring, particularly with the tax incentives and exemptions available to single family offices set up under Sections 130 and 13U of the Singapore Income Tax Act.
Furthermore, adding further advantages are Singapore’s central location in Asia, modern infrastructure and business establishments, strong rule of law, sophisticated and highly-regulated, yet reasonable, financial market infrastructure with well-educated workforce combined with a high quality lifestyle. One can see a myriad of reasons for more of these family offices moving here to open for business to cater to these HNWIs.
Finex HK has one of the largest teams of 20+ associates dedicated to serving the family offices in Singapore and SEA markets. We are actively working with both GPs and LPs to help raise capital in this rising market.
Credit: “Asian family office surge shows no sign of slowing down as Singapore attracts new business”, 25 July 2022 (Carey Olsen)neighbour