That the number of single-family offices in Singapore has grown over the years is telling of Singapore's sterling reputation as a global financial centre.
Single-family offices are private companies that manage investments and trusts for a single wealthy family that can include several generations and multiple households.
Research has found that high-net-worth individuals seek safe harbours that are insulated from risk drivers such as economic, financial and regulatory risks, as well as provide calibrated exposure to the impact and opportunities the digital economy and technological disruption bring about. Singapore ticks off all these boxes as a global financial centre.
For instance, the Global Financial Centres Index survey by London-based think-tank Z/Yen and the China Development Institute ranks Singapore highly in all segments of competitiveness, including financial sector development, business environment and reputation.
Singapore also persistently performs well in other international rankings, such as in terms of digital competitiveness based on the IMD World Digital Competitiveness Ranking, and has been consistently ranked No. 1 globally by the World Bank for ease of doing business.
Singapore is also attractive to high-net-worth individuals from a fiscal perspective, for instance, by having a low tax rate, zero capital gains tax, and efficient structures to manage single-family offices, such as the variable capital company structure with its tax and permanent residence incentives.
The Republic is a compelling value proposition for high-net-worth individuals not only to park their assets, but also to live and bring up their families in a safe jurisdiction.
Single-family offices also help to create jobs for Singaporeans. For example, with the Economic Development Board's Global Investor Programme, there is the caveat that, with at least $200 million in assets to commit, a single-family office must create at least a certain number of jobs, of which some must be filled by Singaporeans.
Indeed, as articulated by Trade and Industry Minister Chan Chun Sing, Singapore remains receptive to top global talent (S'pore to stay open to top global talent as it transforms economy, Sept 9).
And even as Asia stays on course as the region with the most high-net-worth individuals (S'pore gains 3 billionaires as Asia-Pacific tops list: Report, Oct 8), it is imperative that Singapore continues its trajectory to grow from strength to strength.
Woon Wee Min
