In the post-pandemic economic environment, global capital is flocking to Singapore.
Among the newly established family offices in Singapore in 2021, 38.6% are from the Guangdong-Hong Kong-Macao Greater Bay Area. In the first four months of this year, the ratio has risen to 44%.
Mr. L, the co-founder of Fosun Group, set up a family office in Singapore about three years ago.
Figures | Lianhe Zaobao
According to Forbes in the United States, his net worth from China is US$2.2 billion (about S$3 billion).
Before deciding to settle in Singapore, Mr. L visited many places. "Hong Kong SAR is an option, and I also considered Japan, Taiwan, and Vancouver, Canada," he told Lianhe Zaobao.
01
Optimistic about Web 3.0 development opportunities
Radiate the Southeast Asian market
After several thoughts, Mr. L still chose Singapore:
“I later defined myself as the next market to invest in Southeast Asia and South Asia. I chose blockchain and artificial intelligence as the investment direction. I found that Singapore has many opportunities.”
In addition, the Monetary Authority of Singapore has a clear policy on how to regulate these new forms of innovative companies, reassuring investors: "Singapore's policy is governed by rules and seldom changes suddenly."
There are not a few family offices like Mr. L who are optimistic and develop emerging technology fields in Singapore.
Like many policy makers, he believes that Singapore is more appropriate as a "bridgehead" to the entire Southeast Asian market.
In addition to investment opportunities in the region, it is more convenient to invest in other neighboring markets from Singapore, such as India, Vietnam.
02
More mature home office
Pursue higher risk and growth investments
Local family offices in Singapore have seen a marked shift in asset allocation in recent years, with more investments being allocated to alternative assets such as private equity, venture capital, real estate, and direct investment.
Professionals in Singapore said:
Newer family offices:
Relatively conservative, preferring to choose income-producing investments, such as fixed income and real estate, rather than growth assets.
More established family offices:
Has a higher risk tolerance, invests in a wider range of asset classes, and is more receptive to illiquid private markets and pre-market trading.
More and more family offices are actively seeking venture capital (VC) investment opportunities and increasing their asset allocation in this area. They are most interested in disruptive technologies such as information security, Web 3.0, blockchain and fintech.
This is in line with the development trend of global family offices.
03
Raising the threshold for setting up a home office
more attractive to the rich
In mid-April this year, the Monetary Authority of Singapore issued a new policy: to apply for the establishment of a family office under the 13O plan of the Income Tax Act, the asset management scale must reach at least SGD 10 million.
Although the threshold has been raised, the number of high-net-worth individuals who intend to set up family offices has not decreased.
In May, Mr. Li Ka-shing's Victoria Harbour Investments opened an office in Singapore, making it easier to invest in startups that want to expand across the Asian market.
As an internationally important developed economy, about one-third of the Asia-Pacific headquarters of the world's top 500 companies are located in Singapore.
HNWIs choose Singapore mainly for:
Consider investing in the market
optimistic about the business environment
Consider personal factors (quick access to permanent residency)
More immediate reasons include:
Chinese account for more than half, and they are integrated with Western cultures
Laws and regulations are clear and clear, and tax policies are relatively favorable
Educational welfare system, complete and mature supporting facilities
Naturally, Singapore became the first choice. No wonder Li Ka-shing, Rui Dalio and other global ultra-high net worth individuals have taken a fancy to this treasure!
If you are interested in consulting asset allocation, identity planning, financial and tax planning, family wealth inheritance and sustainability. For more information on the establishment and operation of a family office in Singapore, please contact Nebula International's professional team.
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