What’s New?

1. 3-month fast track for tax incentive eligibility – previously 12 months
2. Closer teaming with banks to better expedite opening accounts
3. Designed to keep Singapore business-friendly while still compliant

The Deputy Chairman of MAS, Chee Hong Tat, clarified that the aim is to (high standards of regulation with a convenient and client-friendly experience.

Why It Matters

Family offices – private companies created by rich families to manage their assets – the number of family offices in Singapore is rapidly increasing.

1. 2,000 family offices are active in Singapore as of 2024.
2. That’s an increase of 21% from the 1,650 in 2023
3. Singapore now houses almost 60% of all family offices in Asia

This rapid growth in Singapore has been driven by the relatively tax-positive position of Singapore’s taxation regime, strong financial infrastructure, and the perception of political stability in the region.

Indian Families are Leading a New Wave

High-net-worth Indian families are increasingly considering Singapore as a destination for their wealth planning.

1. In 2023, approximately 6,500 high-net-worth Indians relocated to a foreign country for residency.
2. A wealth transfer of $4 trillion (S$5.3 trillion) is projected among Indian families within the next ten years.
3. Iconic families, such as the Ambani family, have established family offices in Singapore.

Younger Indian entrepreneurs are utilizing structured family offices to facilitate asset governance, succession planning, and global access to investment options beyond gold and real estate.

A Wealth Strategy with Global Appeal

While this MAS update is not an immigration policy, creating a family office in Singapore can be part of an overall wealth and lifestyle strategy for a global family.

For instance, under Singapore’s Global Investor Programme (GIP), qualifying investors can apply for Permanent Residency by investing in qualifying investments, including family offices.

This makes Singapore particularly attractive for families, who may wish to explore strategic wealth management as well as future relocation options without adding immigration to the decision-making process.

Not Tension but Trust: The Balanced Policy of Singapore

The accelerated approvals are due when the international financial flows are under increased scrutiny. MAS has increased its monitoring following a S$3 billion ($2.3 billion) money laundering case in 2023:

1. The fines of S$27.5 million imposed on nine institutions, such as UBS, Citigroup, and UOB
2. MAS confirmed that enforcement actions were based on the severity of lapses, not whether the firms were local or international

However, MAS does not have a zero-risk policy, but a risk-proportionate policy, an approach aimed at safeguarding integrity and promoting actual investment.

Strategic Change with International Signals

Through this new initiative, Singapore is strengthening its reputation as a reputable, resourceful, and progressive hub where the world’s wealth is deposited.

Whether it’s smarter investing, multigenerational planning, or a long-term presence in Asia, the new regulations give families more reasons, as well as fewer barriers, to make Singapore their financial home.