Singapore to continue welcoming legitimate wealth and genuine investments, says Chee Hong Tat

SINGAPORE: Singapore will keep welcoming “legitimate wealth,” “genuine investments,” and “complementary international talent” from around the world, said Chee Hong Tat at the Global-Asia Family Office Summit on Sept 16.

At the summit, Mr Chee said that Singapore needs to stay “open, welcoming, stable, and secure” to stand out in an increasingly turbulent and disruptive world.

According to The Edge Singapore, Mr Chee noted that Singapore’s family office sector is thriving. Since 2020, when 400 single-family offices received tax incentives from MAS, the number has surged to 1,400 by the end of 2023, marking an increase of 3.5 times.

From January to now, Singapore has added 250 new single-family offices, bringing the total number to 1,650.

Mr Chee said that growth in family offices remains strong and expects that the number of new single-family offices in 2024 will exceed the 300 added in 2023.

In his speech, he welcomed the new single-family offices, highlighting that they are arriving at a promising time when Asia’s outlook is bright and growth remains strong.

He also mentioned that the Asia Pacific region is projected to grow by 4.9% in 2025, outpacing other regions, with Singapore poised to benefit from this regional growth.

He pointed out that both local and global banks, like the Bank of Singapore, UOB, Citi, HSBC, and Nomura, are expanding their wealth management services in Singapore. This follows a MAS survey showing that client assets grew 9.5% year-on-year (YoY) in the first quarter of 2024.

According to BCG’s Global Wealth Report, Singapore’s wealth management sector is expected to grow 8.5% annually from 2023 to 2028, faster than other major financial centres.

Mr Chee added that Singapore is a “trusted” financial hub and a “well-regarded” spot for managing wealth. He noted that wealth assets under management (AUM) grew by over 8% in 2023, with a five-year annual growth rate of around 10%.

He said wealth owners choose Singapore for its strong legal system, reliable regulations, and wide range of wealth management services.

On the same day, Mr Chee, the Minister for Transport, Second Minister for Finance, and deputy chairman of MAS, also spoke at the Securities Investors Association Singapore’s (SIAS) 25th anniversary corporate governance conference.

He acknowledged that revitalising Singapore’s equities market “is not an easy task,” but Singapore is ready to make “bold changes.” /TISG

Read also: SG ranked 3rd “wealth magnet” in the world but one Singaporean notes “most citizens are not wealthy”

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