Family Offices Shaping the Future of Wealth Management in Singapore

Over the last decade, Singapore has firmly established itself as a premier destination for the world’s wealthiest individuals to safeguard their assets. As a result of this trend, the country has witnessed a surge in the number of family offices.

In 2024, Singapore witnessed a net rise of approximately 3,500 high-net-worth individuals. This figure stood at 3,200 in 2023. Some of the prominent figures who set up single family offices in Singapore include Sergey Brin, the co-founder of Google, Chinese billionaire Liang Xinjun, Indian billionaire Mukesh Ambani, and American hedge fund investor Ray Dalio. The influx of wealthy individuals further positions Singapore as a stable and investor-friendly destination.

What makes Singapore the Ideal Hub for Family Offices?

The rise of Singapore as a preferred hub for setting up family offices is the result of meticulous policymaking and governance over the decades. The country attracts wealthy individuals with its favourable business environment, political stability, and robust legal framework.

Some of the key factors that position Singapore as the ideal hub for family offices are presented below.

• The country is ranked as the third least corrupt country globally and the most transparent nation in Asia.
• For 15 consecutive years, Singapore has been recognized as the best place to conduct business.
• Singapore is regulatory environments for financial institutions in Asia and the world.
• The strategic location of the country makes it a gateway to booming markets in Asia.
• With a stable currency and legal framework, Singapore has evolved into an attractive hub for secure investments and long-term wealth preservation.

Residency Perks for Family Offices

The residency policies in Singapore, formed through the Singapore Global Investor Program (GIP), are highly favourable for family offices. Under Plan C, qualifying family office leaders can apply for permanent residency. This empowers them to live and work in the country, while they benefit from its lucrative investment environment.

Let’s take a look at these numbers that demonstrate the growth of family offices in Singapore.

• Singapore is projected to be the millionaire capital in the Asia-Pacific region by 2030. 13% of the Singaporean population are likely to be classified as millionaires by 2030.
• Currently, more than 2,000 family offices operate in Singapore, marking a 43% Y-o-Y increment.
• Singapore headquarters 59% of all family offices in Asia.
• Currently, Singapore has 244,800 millionaires and 47 billionaires.
• Singapore has surpassed London and is currently positioned as the 4th wealthiest city in the world.

Much of this new wealth comes from Hong Kong, Mainland China, Southeast Asia, and India. Also, American UHNWIs are increasingly expressing their interest in investing in Singapore.

How Do Family Offices in Singapore Invest?

Family offices in Singapore have come up with diversified investment strategies. These wealth management firms tactically balance private and public market exposure. Some of the key investment areas include:

• Private capital markets: Direct investments, a preference shared throughout Asia.
• Technology and AI: AI and health tech will be emerging as dominant investment avenues, particularly in the next few years.
• ESG and philanthropy: According to new tax laws, family offices need to allocate a minimum of at least 10% or up to S$10 million of their assets to local investments.
• The role of single-family offices in Singapore is crucial, as wealthy individuals continue to shift towards professional management of their finances.

The Shift Toward Professional Wealth Management

A report reveals that 43% of family offices in the Asia-Pacific region are shifting towards professional, non-family leadership. This figure surpasses the global average of 29%. Many SFOs are now hiring from financial services, consulting, and accounting backgrounds, and outsourcing specialized functions to external experts.

As the challenge and complexity of wealth management in Singapore continue to rise, many family offices in Singapore are turning to third-party service providers. Particularly, functions like bookkeeping, compliance, IT integration, and back-office operations are professionally managed by outsourced service providers. Interestingly, 85% of respondents in a survey believe that family offices should outsource middle and back-office functions to curtail costs and improve efficiency.

Professional Consultation for Family Offices in Singapore

The family office sector in Singapore is poised for consistent growth. It is largely driven by the country’s stable economy, world-class infrastructure, and favourable environment for investors. An increasing number of single family offices in Singapore are turning to established consultants like the IMC Group for professional advisory solutions. As global wealth continues to flow into Singapore, the country is consolidating its position as the premier destination for family offices in Asia.