The Survival of the Most Agile

Last November, I wrote that I don’t rule out having the sixth pillar of revenue stream in 2020.

Who would have thought an unknown virus would be the black swan event that has caused so many countries globally to be on lockdown, world economies screeching to a halt and markets to take a hit. I wish every reader well in these extraordinary times.

As a CEO, I have to take this in my stride and still strive to grow my company. When life gives you lemons, make lemonade!

You might have seen this joke. It’s not the CEO or CTO that leads the digital transformation of a company, it is the COVID. Work from home has become a new phenomenon, overseas travel is banned and because of that, we have upgraded our digital capabilities to enable co- working across our 4 offices (Hong Kong, Singapore, Taipei & Shanghai). That turned out to be quite easy, surprisingly. It increased the efficiency of our work, which in turn drove up our productivity levels as well. To further break new ground, we even conducted several webinars to audiences located overseas. These initiatives never crossed our minds before the pandemic. Interestingly, when most things were slowing down, our reach got even wider, we got even more efficient. I constantly strive to be innovative to not only keep up, but to stay ahead of the game. 

Staying Ahead of the Joneses

We started off as a Multi-Family Office but we have since evolved and invented other revenue streams or pillars as we call them. In Singapore, Raffles Family Office is one of the first few to launch the VCC on the 15th January 2020 and that opened up yet another pillar of business for us.

What is the VCC

A VCC is the new corporate structure providing for all types of Collective Investment Schemes (CIS) in Singapore. It is incorporated under the VCC Act and not the Companies Act and serves to plug a gap in the Singapore fund ecosystem. For key features of the VCC, please check out this 3-minute video on our YouTube page. 

6th Pillar

Setting up a VCC in Singapore requires the engagement of a Fund Management licensed (by Monetary Authority of Singapore) entity. The regulation does not exempt Single Family Offices (SFO) even as they are deemed to be managing proprietary assets; hence, SFOs are required to engage fund management licensed entities to enjoy the benefits of VCC.

The flexibility of the VCC is also one of its key benefits, it allows the inward re-domiciliation of foreign funds whilst maintaining its primary structure. This is in addition to the various existing incentive schemes further encouraging the inflow of capital. With its long-standing reputation of stability and accountability, the Singapore brand boasts a robust legal framework and reliable ecosystem which gives fund managers a sound alternative to the Cayman Segregated Portfolio Companies (SPC).

As Second Minister of Finance, Ms. Indranee Rajah, puts it, “The VCC will be a game-changer for Singapore’s fund management industry.” Indeed, many SFOs and overseas fund managers have found the features of VCC compelling.

Instead of taking about 15 months to get licenced and the infrastructure ready, it is much more cost-effective and time-efficient to partner with us who already got everything already up and running. Time is of the essence.

The Survival of the Most Agile

I believe that post-COVID-19, things will never be the same again, the pandemic has upended our daily life. The world evolves so quickly and everything is moving so fast now and people are starting to talk about the importance of the Adaptability Quotient (AQ). How we eventually adapt after we emerge from this crisis will define us for the years to come.

In every adversity there lies the seed of an equivalent advantage. Who would have thought our 6th pillar would arise from unprecedented times.

I am proud to say that my very agile team has managed to adjust very quickly to the new normal and will lead the rise of a game-changing initiative.