S’pore looking to simplify tax scheme framework for single family offices: Chee Hong Tat

SINGAPORE – The Monetary Authority of Singapore (MAS) is reviewing the tax framework for single family offices to ease requirements and better align them with industry needs amid ongoing global uncertainties, said its deputy chairman Chee Hong Tat.

Areas under consideration include reducing documentation for applications, easing reporting obligations and broadening the scope of eligible investments.

Speaking at the WMI Global-Asia Family Office Summit at Conrad Singapore Marina Bay on Sept 29, Mr Chee said that a private banking working group co-led by MAS has been set up to improve account-opening efficiency for single family offices by sharing best practices and adopting artificial intelligence and automation.

It will also highlight potential areas where greater regulatory clarity could help to reduce unnecessary second-guessing as well as excessive pre-approval checks.

These efforts are in addition to the guidelines already issued by MAS and the AML/CFT Industry Partnership – a private-public partnership set up in April 2017. AML/CFT refers to anti-money laundering and countering the financing of terrorism.

“Our objective is clear – to ensure that banks in Singapore provide services that are competitive, efficient, and which facilitate the needs of legitimate investors while maintaining sound regulatory standards,” he said.

Mr Chee also noted that some single family offices had previously waited more than a year for their tax scheme approvals.

“MAS recognises that this is not the standard of efficiency that we should provide to our clients,” he said.

“We have worked hard to improve this, and today, most new applications are approved within three months.”

Mr Chee, who is also Minister for National Development, said Singapore faces global challenges but will remain competitive, open and connected. This means that businesses and wealth owners are operating within a jurisdiction that is stable, pro-enterprise and forward-looking.

“We have a regulatory environment that you can trust, and we won’t shift away from that – at the same time, we will ease the process, make it less tedious, quicker and more efficient,” he said.

Mr Chee highlighted that the Government has rolled out measures to strengthen Singapore’s equities market.

These include committing $5 billion under the Equity Market Development Programme to deepen the fund management ecosystem and broaden investor interest beyond large-cap stocks, lowering listing costs through tax rebates, and streamlining regulatory processes such as prospectus disclosures and admission criteria.

“For family offices, I hope this can create opportunities – both as investors in a more dynamic market and as business owners who might use our strengthened capital markets to raise funds for your businesses,” he said.

Mr Chee also noted that the Government has designed initiatives like the Carbon Project Development Grant, where the Economic Development Board co-funds projects alongside private capital from family offices, to help local firms develop carbon projects and credits while giving families impactful investment opportunities.

Families can also access philanthropic networks and global philanthropic organisations here – networks like the Philanthropy Asia Alliance and ImpactSG bring like-minded families together, and global philanthropic organisations such as the Dalio Philanthropies and the Gates Foundation have also set up in Singapore, he added.

On the talent front, Mr Chee said that institutions like the Wealth Management Institute offer structured training in areas such as wealth planning, succession planning and philanthropy to support the growth of family offices here.

The Wealth Management Institute, which was founded by Temasek and GIC, will partner with the Law Society of Singapore to launch a new specialised programme for legal professionals serving family offices, he said.

“This initiative will strengthen capabilities in complex structuring, governance and succession planning – areas that are increasingly critical as family office needs become more sophisticated,” said Mr Chee.

Beyond wealth management, he said the Republic’s location at the heart of South-east Asia opens up significant business opportunities in a region that is already the world’s fifth-largest economy.

Asean is projected to become the fourth-largest by 2030, with a consumer market of more than 700 million and investment flows of US$230 billion (S$297 billion), he noted.

Mr Chee said that businesses can ride the region’s growth momentum from Singapore by anchoring high-value functions such as headquarters, research and development, advanced manufacturing and even treasury operations here.

At the same time, they can scale in nearby markets through the “Singapore+” model, which extends into Johor as well as the “BBK region” of Bintan, Batam and Karimun.

“The upcoming Johor-Singapore Special Economic Zone will also help businesses to access these growing opportunities,” he said.

Mr Chee said the current global headwinds are not the first test Singapore has faced in its 60 years of independence, and the Republic has overcome difficulties before and will do so again.

“You can plan for your wealth, your business and your family’s future with the confidence that Singapore will remain anchored based on the principles of being competitive, open and connected,” he said.

In a LinkedIn post published after the event, Mr Chee added that “Singapore’s track record of strong governance, stability and consistent policies has earned the trust of investors”.

He noted that the local financial sector, spanning banking, insurance, capital markets, asset management and wealth management, grew by 6.8 per cent in 2024, which is more than double the pace of 2023.

Private banking client assets grew by 19 per cent in 2024, with about half coming from net new inflows.