SINGAPORE Trends and Developments Contributed by: Lee Woon Shiu and Catherine Cheung, DBS Bank Limited
the qualifying criteria of the tax incentive schemes it administered under the Singapore Income Tax Act 1947, namely the Enhanced-Tier Fund Tax Incentive Scheme (S13U), Resident Fund Tax Incentive Scheme (S13O), and Offshore Fund Tax Incentive Scheme (S13D) – collectively the “Schemes” – which have suc - cessfully attracted significant wealth and investments from wealthy families and businesses in the past few years and all being extended until 2029. The tightening of the conditions, which was intend - ed to be a quality filter rather than a curb of interest, has resulted in longer processing times and longer wait to get structures and investment programmes to “13O/13U-ready” status. This has also led to some investors delaying or reconsidering the setup, particu - larly when they cannot meet the required fund size – ie, AUM, designated-investment or local-business spend thresholds. The government is committed to ensuring Singapore remains as a leading global financial hub and MAS has indicated that it is “looking to simplify” the Schemes’ framework in order to make it more efficient and more aligned with industry practice. Some of the reforms would include: • reducing documentation and processing times for applications; • simplifying ongoing reporting requirements; and • broadening the range of eligible investments under the relevant Schemes. Singapore Budget 2026: Noteworthy for the Private Wealth Sector Technology and artificial intelligence Embracing AI is a key private-wealth expansion tool for improving client data insights, risk analytics and portfolio modelling. Singapore has built a digital infra - structure, namely, onboarding and e-KYC processes, and AI-based compliance systems that reduces fric - tion while maintaining high regulatory standards. This would mean shorter account-opening times, inte - grated reporting and a more transparent experience for clients. A few private banks in Singapore have adopted AI- powered portfolio-rebalancing tools that assess client
behaviour and real-time market trends. These systems automatically identify concentration risks or liquidity gaps. UHNWIs who expect efficient digital experienc - es and seamless access to a range of private banking products and services, would view technology as an important factor in choosing where to manage their wealth. Boosting the equities market and attracting investment Singapore government’s concerted effort to boost its equities market and enhance its appeal to UHNWIs is demonstrated through the introduction of certain measures and programmes in the 2026 Budget. A key development is the injection of an additional SGD1.5 billion by MAS which is intended to increase investor participation in Singapore equities. This builds on the existing Equity Market Development Programme (EQDP), a SGD5 billion MAS initiative launched in July 2025. The EQDP has revitalised the initial public offering scene in Singapore, with 16 list - ings on the Singapore Exchange (SGX) in 2025, fol - lowing a lull in 2023 and 2024. The Financial Sector Development Fund (FSDF), established by MAS in 1999, provides grants to finan - cial services firms and individuals, promoting Singa - pore as a financial centre. An additional top-up to the FSDF is part of a broader strategy to strengthen Singapore’s enterprise ecosystem by nurturing home- grown start-ups, catalysing private capital and attract - ing promising global companies. The Anchor Fund, a co-investment fund established in 2021 between the government and Temasek (man - aged by 65 Equity Partners), supports high-growth enterprises and market leaders in their public fund - raising efforts in Singapore’s public equity market – ie, those heading towards public listings. The second SGD1.5 billion tranche of the Anchor Fund is another significant measure aimed at increasing Singapore’s attractiveness as a listing destination. Opportunities for wealth and succession planning The evolution of Singapore’s capital markets is sup - ported by initiatives such as streamlining the listing
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