Where is Asia's leading hub for family offices? Hong Kong has its advantages in terms of flexibility and speed, according to UBS, which is confident that the local government will achieve its target of attracting 200 family offices by 2025.

Hong Kong and Singapore are currently vying to be the hub of choice for family offices seeking to establish a presence in Asia. As of end-2023, Hong Kong was home to over 2,700 single family offices (SFO), according to a Deloitte report. On the other hand, Singapore’s government noted that 1,400 SFOs have been awarded tax incentives.  

Which market could outdo the other as the leading center for SFOs? 

Free Market Spirit

According to Andrew Lo, Greater China head of family advisory & family office solutions at UBS Global Wealth Management, a key advantage of Hong Kong is its adherence to free market principles. 

«The Hong Kong government would like to let market forces develop and it’s easy for people to do business,» Lo said during UBS’ recent release of its 2024 family office report. «This kind of spirit also translates into policy differences.»

Speed and Flexibility

As a result of such differences, family offices seeking to set up in Hong Kong benefit from greater speed and flexibility.

For example, Hong Kong does not require regulatory application except to obtain tax benefits. Prospective SFOs in Hong Kong can also hire non-local workers and family members, bank assets in foreign jurisdictions and invest outside of local markets. 

Greater Bay Area

Another key benefit outlined is Hong Kong's connectivity to China, specifically to the Greater Bay Area – an 11-city cluster that Beijing has planned for increased economic integration.

«[The Greater Bay Area] accounts for only about 1 percent of the land in China but it has 6 percent of the population. In terms of GDP, it contributes about 11 percent,» Lo said. «It is twice as productive as the average area in China.»

200 SFOs by 2025

As part of its hub ambitions, the Hong Kong government previously announced that it would aim to attract another 200 SFOs by 2025. Local authorities have said that they have already assisted 64 family offices to establish in the city since then.

«I am very confident that the government can achieve this target,» Lo added. 

Singapore: ASEAN Potential 

Nonetheless, UBS did not rule out Singapore as a contender. According to APAC head of global family and institutional wealth LH Koh, one of the city-state’s key advantages is its links with Southeast Asia which is home to economies that are young, growing and increasing tech adoption.

«Don’t forget […] the likes of Vietnam and even Indonesia,» Koh commented. «They are still in the early stage of development and full of potential but there’s also risks involved in those markets.»

In a separate conversation with finews.asia, Lo noted that clients also lauded Singapore for its robust private banking ecosystem, sound financial regulations, strong rule of law as well as political and economic stability.