Singapore family offices are growing and expanding their investment horizon
- Singapore is the glittering jewel of family offices in Asia, with a staggering 59% of these powerhouses in Asia calling it home.
- These family offices aren’t just sitting on their laurels; they’re gearing up to dive headfirst into the Asia-Pacific asset pool. And let’s talk numbers – by the end of 2022, Singapore boasted a whopping 1,100 Single Family Offices, up from a mere 700 in 2021. That’s a turbocharged 57% year-on-year boost.
Singapore government has built, and they’ve come
Due diligence: Singapore’s government has created one of the most popular destinations to establish a family office in Asia due to its clear and non-conflicting regulatory and legal framework, as well as its reputable judiciary system:
- It ranks 1st in global and political and operational stability and is the 4th largest recipient of foreign direct investments globally (FDI).
- This makes the country a thriving location for businesses with over 3000 start-ups, a global network of 500 investors, and more than 200 incubators and accelerators.
Can Australian firms tap the family?
Australian family friends:
- In the era of rising interest rates, slower capital flows, and the Inflation Reduction Act doing its thing, Australian businesses are on the prowl for funding from every nook and cranny.
- That’s where Singapore’s family office ecosystem steps into the spotlight.
Where’s the magic happening?
Well, there’s an Australia-Singapore love affair brewing in a few key areas:
- The Singapore-Australia Digital Agreement is one spicy avenue for collaboration.
- Don’t forget the Green Economy Agreement, an eco-friendly handshake between the two nations.
- Let’s not overlook the potential of Real Estate Investment Trusts (REITs), the financial gems that can make portfolios sparkle.
- Singaporean family offices are eyeing Australian VC (venture capital) areas. It’s a match made in financial heaven.
The Family Forecast
Hold onto your calculators; there are some twists in this tale. Singapore’s family offices are evolving, and here’s what’s on the horizon:
- Tax incentives are in the works for philanthropic investments, encouraging overseas donations made through local intermediaries. It’s like a financial high-five for doing good and will be live from 1 January 2024.
- Tax incentives for climate investments, even those beyond Singapore’s borders, were launched in July 2023. It’s Singapore giving a nod to the green revolution.
- A plot twist: The Monetary Authority of Singapore has begun imposing new restrictions, such as a minimum fund size of S$20 million, and approval times for new registrations from some jurisdictions have stretched out following the city-state’s biggest money laundering probe in August. But, of course, with changes come challenges and that’s a rollercoaster ride you’d want to keep an eye on in the months ahead.
Singapore family offices are an Australian investor’s dream, where wealth, innovation, and opportunities collide, and the future is just starting.
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This is one of a six-part series looking at the business opportunities for businesses across the Australia – Southeast Asia corridor. The insights are powered by Via Communications Group: a communications agency focused on supporting international businesses with their cross-border communications needs across Asia. You can check them out at wearevia.com
See other stories in this series
- Australia elevates ASEAN as a key corridor region: what you need to know
- ASEAN’s Digital Economy: Unleashing Hidden Potential
- ASEAN’s lagging green transition is an opportunity for Australian business know-how
- Australian companies have the tools to fill ASEAN’s infrastructure gaps
- Asian governments step in for start-ups amid private capital downturn
- Getting in with the Singapore Family Offices