Weekly Digest: SG single family offices hit 1,650; Malaysia offers zero tax to lure family offices
TOP NEWS OF THE WEEK
Singapore attracted 250 new single family offices in the eight months to August and the number will probably exceed last year’s 300 by the end of 2024, according to the government.
Chee Hong Tat, deputy chairman of the Monetary Authority of Singapore, revealed the numbers at a family office conference on September 16 in Singapore.
He noted that single family offices in the city state soared to 1,400 in 2023 from 400 in 2020.
“In the first eight months this year, we added another 250 to reach 1,650 single family offices. Growth has continued to be robust, and we expect the number of new single family offices for 2024 to surpass the 300 that we added in 2023,” he said.
Source: MAS
Malaysia is offering a 0% tax rate for family offices to set up shop in its struggling mega-project Forest City, as it looks to revive investor interest in the $100 billion development near its border with Singapore.
The government is also offering a concessionary corporate tax rate of between 0% and 5% and individual income tax rate of 15% for knowledge workers and Malaysians working there, Malaysia’s Second Finance Minister Amir Hamzah Azizan said in Johor state.
Source: Bloomberg; Securities Commission
OTHER INVESTMENT NEWS
AUSTRALIA
TelstraSuper and Equip Super have announced their intent to merge, signing a non-binding memorandum of understanding to explore a 'merger of equals'.
This move follows TelstraSuper's announcement in May 2023 to seek a merger partner, aiming to establish a new identity separate from Telstra after 30 years of operation.
The proposed merger would create a formidable player in Australia's superannuation landscape, with a combined A$60 billion ($41 billion) in funds under management and over 225,000 members.
The merger is expected to be finalised in late 2025.
Source: TelstraSuper
HONG KONG
Prudential launched a whitepaper on climate transition financing, including a framework that integrates emerging market considerations when investing in energy transition.
It also unveiled a paper that explores a practical investment approach on how to construct a capital markets climate transition portfolio.
These whitepapers are aimed at addressing two challenges that Prudential sees in the market in relation to financing the effort against climate change, including the need to finance “brown to green” projects and the lack of a standardised definition.
There is also a need for flexibility with regard to emerging markets in Asia and Africa, recognising that they require a unique approach to low-carbon transition.
Source: Prudential
SINGAPORE
GIC completed the sale of its 50% stake in a Western Australia mall to Hong Kong investor JY Group for A$195 million ($132.8 million).
Scentre Group, Australia’s biggest retail landlord, continues to hold a 50% share of the mall, Westfield Whitford City, in northern Perth, according to law firm Lander & Rogers, which advised JY on the buy.
Source: Mingtiandi
THE PHILIPPINES
As the country’s sovereign wealth fund continues to explore potential investments, gold and copper mining has caught the eye of Maharlika managers.
Finance Secretary Ralph Recto, who also chairs the Maharlika Investment Corp., said several investments are under scrutiny.
“They’re talking about other energy projects in Mindoro, [and also] mining—Makilala Mines,” Recto said.
Makilala Mining is a subsidiary of the Australian Securities Exchange-listed Celsius Resources.
Its flagship project is the Maalinao-Caigutan-Biyog copper-gold project located in the Cordillera Administrative Region.
Source: Business Inquirer