S’pore must continue to attract investors to build regional HQs, grow wealth here: Chee Hong Tat

SINGAPORE – Singapore is seeing growing interest from investors to build regional hubs or expand their wealth here, and will ensure the business environment remains conducive for them to achieve sustainable growth, said Second Minister for Finance Chee Hong Tat.

“There will be more interest from investors to look at Singapore as a key node and a hub in Asia,” said Mr Chee, who is also deputy chairman of the Monetary Authority of Singapore’s (MAS) board of directors.

“We want to see how we can offer a greater variety of investment options, including for people who want to put their wealth here and also grow their wealth here,” he said.

Speaking at a fireside chat during UBS Asia Wealth Forum 2025 on Jan 14, Mr Chee noted that Singapore’s pro-business and pro-innovation policies, as well as a stable and well-regulated environment, appeal to investors here.

The wealth management sector continues to flourish, with the number of

single-family offices

growing to more than 2,000 by the end of 2024, said Mr Chee.

That was a more than 21.2 per cent increase from 1,650 by the end of August 2024 and at least a 42.8 per cent rise from 1,400 by the end of 2023.

The rise came on the back of tax incentive schemes by MAS to encourage single-family offices to do business here, as well as create jobs, stimulate demand for local service providers, and channel capital to enterprises. 

Mr Chee said that there has been growing interest from Chinese companies looking to venture overseas to places such as South-east Asia.

Many of these businesses have opted to set up their headquarters in Singapore to support their expansion plans in the fast-growing region.

Some of these firms include sportswear company Anta, toy company Popmart and telecom equipment and technology company Suzhou Dongshan Precision Manufacturing.

Singapore has been working with such Chinese firms to build their regional hubs here, Mr Chee said.

With uncertainties rising, the Republic should continue to position itself as a place where investors have the confidence and trust that the Government takes a long-term economic view and focuses on achieving sustainable growth, said Mr Chee.

He added that the financial sector has seen good progress in the past few years, and noted that wealth management and financial services remain key growth areas.

Mr Chee said that wealth management will become a more important sector in Singapore as the population ages and more people look for better retirement options.

Wealth management assets in Singapore have grown by an average of about 10 per cent per year over the past five years.

He said that the Government wants to continue working with the industry to help Singaporeans grow their investment portfolios and wealth over time.

For example, to attract more firms to list on the Singapore Exchange, the MAS

announced a review group in August 2024

to study measures to directly support both firms and investors, as well as create a more conducive trading environment overall.

These efforts are being taken amid rising uncertainty around interest rates.

The US Federal Reserve

cut interest rates by 0.25 percentage point

in December 2024, marking its third consecutive rate cut of the year.

But Fed officials now project two 0.25 percentage point rate cuts in 2025, down from an original forecast of four 0.25 percentage point cuts.

“We ask investors to really take a hard look at their cash holdings and think about how central banks continue to cut rates around the world, and if there are alternatives to diversify in other sources of income, either fixed-income sources or high-yielding dividend equities,” said Mr Mark Haefele, chief investment officer of UBS Global Wealth Management.

“Because if rates keep coming down, you’re not going to get that return from cash anymore,” he added.