A supportive business environment, constant innovation and strong rule of law are making Singapore a hub for family offices, which will lead to a host of opportunities.

The Singapore Economic Development Board reports that 700 FOs were established in Singapore as of 2021, with more expected to set up shop as wealth grows in Asia and overseas family offices target the region: 54% of global family offices plan to increase their allocations to Asia Pacific assets over the next five years. 

It is not just that Singapore is a safe haven for investments, but that the city-state has continued to innovate and been able to change tack in the face of a changing global economy.  

It has pivoted from its heavy reliance on banking and financial services to new engines of growth. There is a focus on technology, biomedical sciences, logistics and transport engineering as well as a host of tech start-ups.  

For family offices with an interest in venture capital, Singapore has a vibrant start-up ecosystem. More than 3,000 start-ups are plugged into a global network of over 300 private equity and venture capital managers, and more than 190 incubators and accelerators are based here. 

In addition, the Singapore government has rolled out numerous schemes for new entrepreneurs with innovative business providing funding and guidance. The government created incentives to support these direct investments with the goal of creating jobs, developing its technology sector and making the country a global business hub. 

It has also created a benign environment for wealth management with low personal and business taxes and measures such as the Variable Capital Corporation, which offers tax efficiency, no requirement to publish financial statements and the flexibility to pursue a range of investment strategies.  

Singapore is benefiting from the rush to set up new or satellite family offices with an increased focus on philanthropy and impact investing. Those to set up shop in Singapore include Horizon Ventures, a private investment firm associated with Hong Kong billionaire Li Ka-shing, the Oppenheimer Family Office of De Beers chairman Nicky Oppenheimer, hedge fund billionaire Ray Dalio’s Bridgewater Associates and Google co-founder Sergey Brin’s Bayshore Global Management. 

Looking ahead, Singapore is also likely to benefit from political uncertainty and a higher tax environment in China. Wealthy Chinese investors are likely to seek diversification and a Mandarin-speaking jurisdiction with the security they require is bound to benefit.  

The influx of family offices will benefit Singapore real estate directly through their business activities and their investments in commercial and residential properties. The family office ecosystem will also attract more investment from regional and international wealth managers. It will also cement Singapore’s position as the investment hub for Southeast Asia, taking advantage of a 200 million strong and growing middle class. 

Although 2023 will be a difficult year, we expect the security, flexibility and innovation of Singapore to continue to attract family offices and their investments, boosting prosperity and opportunity for the longer term. 

Further reading:
Savills Singapore

Contact Us:
Marcus Loo