Many wealthy and young Chinese are moving out to Singapore as they become disillusioned with their country’s draconian COVID policies.
Singapore: A New Haven
Singapore can very well be a new haven for super-rich Chinese people to set up a “family office,” especially young people. Singapore is great as it is stable and offers lots of investment opportunities. Many believe that this country could be an ideal place to park their family’s wealth. Many wealthy young graduates have even chosen to study in Singapore in the hope of obtaining permanent residency there.
A business and philanthropy forum was conducted last year in Singapore’s Shangri-La hotel, where many hundreds of wealthy people made their presence felt. Many came laden with designer wear such as Gucci shawls and Hermes belt buckles. Several Chinese attendees have either recently relocated to this new haven or are of the opinion that they will do so soon.
Singapore has long been a haven for the ultra-rich. The favorable tax regime, stable political and economic environment, and the presence of a well-developed financial services sector in Singapore have also contributed to the increase in ultra-rich people in the country.
In 2021, many more rich people entered Singapore as it was the first Asian city to ease Covid Restrictions.
China’s Common Prosperity Drive
Many Chinese became disillusioned with their country’s draconian COVID policies. During the COVID-19 pandemic in China, there have been reports of wealthy individuals being subjected to stricter measures or unequal treatment. This has included arrests, forced quarantine, and restrictions on movement. These measures were taken as part of the government’s efforts to control the spread of the virus and to demonstrate its commitment to public health.
However, they have also been criticized for being discriminatory and unequal, as they have not been applied equally to people of different social classes or income levels. Some have seen these actions as a way for the government to target those who are perceived to be flaunting rules or disregarding public health guidelines.
The abandonment of the “Zero-Covid Policy” did not provide them with any assurance, and then there is President Xi Jinping’s “Common Prosperity Drive,” which aims to reduce inequality. As a result of their concerns, they decide to leave the country.
A family office in Singapore is a private wealth management firm that provides comprehensive financial and investment services to wealthy individuals and families. These services typically include investment management, tax planning, estate planning, risk management, and other financial matters.
Family offices in Singapore cater to high-net-worth individuals who seek personalized and comprehensive financial services, and they provide a high level of privacy and confidentiality. The favorable tax regime, stable political and economic environment, and presence of a well-developed financial services sector in Singapore have all contributed to the growth of family offices in the country.
The number of family offices in Singapore has increased in recent years, reflecting the growing wealth and financial sophistication of high-net-worth individuals in the country. According to reports, the number of family offices in Singapore has surged to around 700 in 2021, up from 400.
This growth is seen as a reflection of the increasing wealth and financial sophistication of high-net-worth individuals in the country. Some well-known family offices in Singapore include those set up by James Dyson, the inventor, and founder of the Dyson company known for its vacuum cleaners; hedge fund manager Ray Dalio; and Zhang Yong, the founder of the Haidilao hotpot restaurant chain in China.
Current Trend in Family Offices
In 2022, interest in family offices reached a new high, and it is expected to continue this year. According to a lawyer who set up family offices, in 2021 he used to receive a single inquiry for family offices per month, but in 2022 it increased to one inquiry per “week.” And as of this week in January, that figure has risen to two inquiries per week.
Many inquiries came from China from parents who wanted to obtain permanent residency for their children. There are also inquiries from Japanese and Malaysian potential clients. All this interest in Singapore is due to its government-administered global investor programme. Under this programme, people who invest at least S$2.5 million ($1.9 million) in a business, a fund, or a family can apply for permanent residency.