SINGAPORE Trends and Developments Contributed by: Lee Woon Shiu and Catherine Cheung, DBS Bank Limited
requirements and establishing the SGX-Nasdaq dual listing bridge. The introduction of the SGX-Nasdaq dual listing bridge is expected to attract large, growth-oriented enterprises and global companies to use Singapore as a base to tap into both Asian and US investor bases, gain access to the deep institutional capital markets of the US, as well as the substantial equity and private- wealth pools across Asia and ASEAN via SGX. In addi - tion to increasing their visibility and potential for fund - raising, this expanded access will help to bring about more favourable funding terms, greater liquidity and valuation improvement for these companies which will be exposed to a broader spectrum of investors with differing appetites and valuation metrics. In addition, the FSDF also helps significantly to cre - ate wealth in Singapore by providing grants to finan - cial services firms and individuals and by fostering a robust enterprise ecosystem that nurtures home- grown start-ups, catalyses private capital and attracts global companies. As more start-ups grow into high-value enterprises and eventually list on the Singapore stock exchange or as global companies establish and expand their presence in the city-state, wealth for executives and employees through equity-based compensation naturally increases. The number of individuals accu - mulating significant wealth in the form of company shares (both pre-IPO and listed) naturally increases. This greater concentration of wealth in equity assets will potentially lead to a higher demand and need for sophisticated wealth management solutions tailored to the unique challenges and opportunities of holding pre-IPO and listed shares. Trusts The prevalence of significant holdings in both pre-IPO and listed shares amplifies the importance of trust structures as a central component of wealth man - agement and legacy planning. Trusts are therefore set to play a pivotal role in facilitating intergenerational wealth transfer, ensuring business continuity and sup - porting the diverse ambitions of Singapore’s grow - ing community of UHNWIs and entrepreneurs. A trust structure provides a flexible and robust framework for
holding such assets, allowing for the seamless trans - fer of shares across generations while circumventing the complexities of probate and potential tax expo - sure for beneficiaries who may be resident in high-tax jurisdictions. For business founders and major shareholders, plac - ing pre-IPO or listed shares into trusts ensures conti - nuity of control and governance, preserving the found - er’s vision and facilitating smooth succession even in the event of incapacity or death. This is especially crucial for rapidly growing companies preparing for public offerings, where continuity and stability are vital to investors’ confidence and business value. In addition, trusts afford a layer of protection for these valuable shareholdings against personal risks such as creditors’ claims, divorce proceedings, or unforeseen financial setbacks. By isolating shares within a trust, UHNWIs and business owners can better shield their wealth, ensuring that the valuable company’s future is not jeopardised by individual circumstances. For those with philanthropic objectives, they can use trusts to allocate a portion of their shares to chari - table causes in a structured and tax-efficient man - ner, supporting both personal legacy and the broader society-related impact. VCC A variable capital company (VCC), a new corporate structure introduced in Singapore in 2020 for invest - ment funds, continues to be a popular vehicle used as a multi-family office to manage assets and provide services to members of different families. In addi - tion to allowing fund managers to issue and redeem shares with greater flexibility, a VCC has the option for dividends to be paid out of capital. This is a feature not available in a typical corporate entity incorporated under Singapore’s company legislation. Since the launch of the VCC framework in 2020, based on MAS data, as of early 2025, there have been more than 1,200 VCCs incorporated or re-domiciled in Singapore by regulated fund managers based in the city state. VCCs are set up as complementary to, rather than replacements for, trusts. In fact, Singapore is seeing a rise in the use of Singapore companies and trusts, combined with VCCs, sometimes with limited
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