The ultra-rich continue to opt for Singapore as their hub of choice with hundreds of more family offices being established in the city-state in 2024.

In the first eight months of 2024, the Monetary Authority of Singapore (MAS) has awarded another 250 family offices with tax incentives, according to Chee Hong Tat, deputy chairman of the regulator, in a speech at the Wealth Management Institute’s «Global-Asia Family Office Summit».

In total, 1,650 single family offices have been awarded tax incentives, up from 1,400 at end-2023 and 400 in 2020. Chee said that he expects the number of new family offices in 2024 to surpass the 300 added in 2023.

«To those who have recently chosen to set up your family office here, a warm welcome to Singapore,» he said at the two-day summit. «You have joined us at a good time – Asia’s prospects ahead are bright and the growth momentum remains strong.»

Industry Growth

Chee also highlighted the growth in assets under management (AUM) and the private banking industry. In 2023, wealth management AUM increased by 8 percent, resulting in a five-year compounded annual growth rate of about 10 percent. And in the first quarter of 2024, client assets at Singapore’s leading private banks grew 9.5 percent year-on-year.

Chee cited expanding teams and offerings at private banks including Bank of Singapore, UOB, Citi, HSBC and Nomura.

Strengthening the Ecosystem

According to Chee, there is further potential for family offices to grow and contribute in the city-state. He highlighted three main areas: philanthropy; private equity and venture capital investments; and building talent and capabilities.

«Wealth owners choose Singapore for many reasons – our strong rule of law, robust and predictable regulatory regime and a comprehensive ecosystem of wealth managers and professional service providers are also some of the reasons,» added Chee who is also the Minister for Transport and Second Minister for Finance.

«Equally important to wealth owners who spend time here is our high quality of life, our safe and secure environment which is family-friendly, and our excellent connectivity with the rest of the world, as well as our world-class education and healthcare systems.»