Wealthy Chinese seek Singapore base again amid tighter scrutiny of offshore wealth in China

SINGAPORE: The wealthy Chinese are said to be looking to return to Singapore amid geopolitical tensions and tightening scrutiny in Beijing, according to family-office advisers and wealth managers.

Tighter scrutiny of wealth held outside mainland China has reportedly rattled wealthy families, with new rules requiring disclosure of offshore trusts, tax liabilities and other overseas assets. These new rules can apply regardless of where a trust is located or where an individual physically resides.

Singapore was a popular destination for wealthy mainland Chinese looking to diversify their assets, but after Singapore’s 2023 S$3 billion money-laundering case brought tighter scrutiny and compliance requirements, some wealthy Chinese moved away from the city-state to Hong Kong, the Middle East and Japan.

Now, however, Bayfront Law director Ryan Lin told CNBC: “They’re now telling me I really want to come to Singapore to become a citizen.”

Mr Lin said wealthy mainland Chinese initially chose Singapore because China’s policies had a “much closer” impact on Hong Kong. “When it comes to the safety of their wealth, they probably now are considering Singapore very, very seriously for the long term,” he said, adding that clients are more determined this time.

He also said several wealthy Chinese have been asking about pathways to permanent residency (PR) and citizenship as they look to make Singapore a longer-term base.

Farro Capital co-founder Manish Tibrewal said his firm has also seen an uptick in relocation inquiries from wealthy Chinese.

Restrictions on mainland investors’ access to offshore brokerages in Hong Kong have also unsettled some clients. “They find perhaps Hong Kong is really too close to China,” Mr Lin added.

Still, other family-office advisers and wealth managers said moving to Singapore does not necessarily mean cutting ties with China, especially without a change in citizenship and tax status, but is more about creating greater distance from the mainland while keeping their options open.

Besides aiming for distance from the mainland, industry experts said ongoing geopolitical tensions in the Middle East, along with the Monetary Authority of Singapore’s (MAS) move to ease family-office tax rules, are also making the “predictability and safety” of the city-state more attractive to wealthy Chinese.

In a LinkedIn post, however, senior workforce and skills policy adviser Ives Tay commented on the renewed interest from wealthy Chinese looking to park their wealth in Singapore, saying the city-state should now ask: “How do we make sure Singaporeans share in the wealth we attract?”

“A global wealth hub should ultimately make life better for the people who call Singapore home — not just for the people who park their wealth here,” he added. /TISG

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