Family offices flock to Singapore despite tighter controls

The number of single family offices in Singapore grew to 2,000 in 2024, according to the Monetary Authority of Singapore earlier this month, and that number is likely to rise, according to wealth managers. 

 

Richard Lewis, managing director, team head, family office for Asia at Schroders Wealth Management, expects the number of single family office in Singapore to continue growing, largely driven the growth of wealthy individuals in Asia. 

 

“The region's increasing population of ultra-high-net-worth individuals, along with a stable political climate and a transparent regulatory environment, has made the establishment of family offices more appealing,” Lewis told Asianinvestor.

 

According to Chee Hong Tat, deputy chairman of the city state's central bank, there were 1,650 single-family offices in Singapore in 2023. 

 

Single family offices are one-stop firms that manage the assets of a wealthy family. 

 

Setting up such operation in the Lion City can come with high operational costs and challenges in talent acquisition, said Kunal Chowdhry, CEO of Apollo Singapore Investments, which manages investment for a family office headquartered in Singapore. 

 

Singapore’s stringent regulatory requirements, especially regarding assets under management (AUM), may pose barriers for smaller families or those that are still building their wealth, Chowdhry told AsianInvestor.

 

“The country’s stringent investment requirements ensure only serious and committed investors set up family offices,” Chowdhry said. 

 

The Global Investor Programme (GIP) mandates a minimum of $147 million (S$200 million) in AUM, and at least S$50 million should be invested in qualifying Singapore-based assets. 

 

These high thresholds are aimed at attracting long-term, high-quality investors and they are also formulated to match Singapore’s economic priorities, said Chowdhry. 

 

There is rising competition for experienced wealth management professionals, making talent retention increasingly difficult, Chowdhry added. 

 

Costs are also high because there are often requirements for significant investments in physical office space, local staffing, and operations, he said. 

 

In 2024, Singapore’s reputation took a hit following a high-profile money laundering case in which 10 Chinese nationals were charged for laundering $2.2 billion earned from criminal activities abroad.

 

The Singaporean government responded with a raft of measures to enhance its anti-money-laundering regime aimed at promoting greater transparency and accountability within the single family office sector. 

 

While these measures have temporarily caused some ultra-high-net-worth individuals (UHNWIs) to hesitate in establishing single family offices in Singapore, the government’s transparency and decisive actions are expected to rebuild trust, Chowdhry said. 

 

“These efforts will likely bolster long-term confidence among UHNWIs, reinforcing Singapore’s position as a premier destination for family offices and wealth management,” said Chowdhry. 

 

Additional reporting by Stanley Le