Singapore has created an ecosystem that family offices can readily tap into
Despite the global economic fallout caused by the COVID-19 pandemic, more than 5 million across the globe became millionaires in 2020. Because of this, there was an influx in demand for family offices.
Campden shared that family office veteran Denise Kenyon-Rouvinez called this surge in wealth and boom in family offices in Asia, “unbelievable.”
“The family office is often the safety net for the business in case of collapse of the economy,” Kenyon-Rouvinez said. “For many wealthy families in Asia, the family office is a way of diversifying assets away from the family business,” she added.
The Business Times noted that privately held family offices manage the wealth of affluent families. These also handle other issues regarding ESG, legal, philanthropy, succession, and taxes.
Singapore has created an ecosystem that family offices can readily tap into, and its support for the industry mirrors its efforts.
It used to be a popular choice for Asian high-net-worth families, according to Hawksford, but that has changed dramatically in the last decade. With a growing number of European families choosing Singapore as the jurisdiction for their SFOs and family trusts, the origins of wealth owners setting up an SFO in Singapore are becoming increasingly diverse.
As more wealthy families and investors moved to Singapore, their family offices followed. Single-family offices, which mostly served as satellites of a main office, were the first to arrive. Today, however, as the industry grows, so do the families’ needs, causing multi-family offices to also experience an influx.
The government offers tax incentives to attract and retain global clients. In some cases, it also provides opportunities for them to become permanent residents.
As the demand for family office experts increases, so does the need for independent trust businesses, law firms, and accounting firms. Because of this, senior private bankers are likely to work for a single-family office or multi-family office rather than a bank.
The Property Report editors wrote this article. For more information, email: [email protected].
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