SINGAPORE Trends and Developments Contributed by: Lee Woon Shiu and Catherine Cheung, DBS Private Bank
DBS Private Bank 12 Marina Boulevard, Level 6, DBS Asia Central Marina Bay Financial Centre Tower 3 Singapore 018982 Tel: 9021 5130 Email: catherineks@dbs.com
Private Wealth in Singapore: An Introduction Private wealth management in Singapore is no longer solely about managing money through an offshore company with a primary focus on optimising asset allocation and generating financial returns. A more holistic approach has evolved, encompassing finan - cial, succession and estate planning, insurance solu - tions, tax advisory and intergenerational wealth trans - fer across multiple jurisdictions for corporate capital redeployment, retirement, family governance and other cross-generational life events. This evolution has been driven by the increasing com - plexity and volatility of the global geopolitical and financial environment and the influx of affluent and sophisticated migrants into the city-state. Nowadays, ultra-high net worth individuals (UHNWIs) expect bespoke solutions tailored to their specific circum - stances and goals, incorporating family office and trust solutions combined with advice on philanthropy and family governance. With younger generations coming into the market and becoming more involved in family wealth manage - ment, there is increased interest and focus on new asset types, such as cryptocurrencies, fine arts and investments incorporating environmental, social and governance (ESG) factors alongside financial perfor - mance. Family office growth Family offices have emerged as a vital tool for con - solidating, managing and safeguarding the wealth of UHNWIs and their families. Traditionally, the super-rich tended to favour the west as the choice location for
their family offices, but this trend has been shifting towards Asia-Pacific in the past few years. In the last five years, Singapore has become a favoured hub in Asia for UHNWIs to base their family offices and park their assets. The number of single-family office (SFO) funds awarded tax incentives by the Monetary Authority of Singapore (MAS) has increased signifi - cantly, from just 400 in 2020 to over 2,000 by the end of 2024. The SFOs operating in Singapore are typically held either directly by family members or indirectly through structural arrangements with the use of trusts, limited partnerships or other offshore entities – eg, British Virgin Islands (BVI) companies. The indirect holding structure is often adopted to ensure confidentiality and facilitate strategic holding and succession plan - ning. Under a family office structure, the SFO as the fund management company receives income from the annual investment management fee that is paid by the fund entity as part of its local business spend - ing requirement. The beneficial owners, together with their family members (subject to conditions on invest - ment professionals), can gain residence in Singapore through applying for employment passes under the SFO structure. It is common for employment pass holders, upon meeting the minimum salary requirements, to also apply for dependent passes for their children to stay and study in Singapore, which is well known for its high-ranking education system. This is another pull
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