Number of single family offices awarded tax perks hit 1,650 as at end-August

THE Monetary Authority of Singapore had, as at the end of August, awarded tax incentives to some 1,650 single family offices (SFOs).

The number was up from the 1,400 SFOs given such tax perks as at the end of 2023. In 2020, the number was 400.

With 250 SFOs added in the first eight months of this year, the number of SFOs added in 2024 will likely surpass the 300 for the whole of 2023, said Chee Hong Tat, the Second Minister for Finance and deputy chairman of MAS.

Chee, who is also Minister for Transport, was speaking at the Global-Asia Family Office Summit organised by the Wealth Management Institute on Monday (Sep 16).

Noting that Singapore was “a strategic gateway to Asia”, he said growth in Singapore’s assets under management (AUM) in 2023 was driven by an increase in valuation and net inflows across traditional and alternative assets, as well as in wealth management and many other activities.

Singapore’s wealth management AUM grew more than 8 per cent in 2023, and its five-year compounded annual growth rate was around 10 per cent, he noted.

Chee said Singapore will continue to welcome legitimate wealth, genuine investments and complementary international talent from around the world.

“The more turbulent and disruptive the external environment becomes, the more we must remain open, welcoming, stable and secure to differentiate ourselves,” he said.

Chee said family offices have created good jobs in Singapore – through direct hiring of professionals, as well as engagement with private banks, fund managers and legal and tax firms.

He noted that several private banks – Bank of Singapore, UOB, Citi, HSBC and Nomura among them – plan to continue expanding their teams and offerings in Singapore.

The capital and business know-how and networks brought in by families also contribute to nurturing local ventures and innovation activities, he said.

Meanwhile, family-led enterprises have been key contributors to climate mitigation and adaptation causes, he added.

Singapore will continue to enhance its ecosystem of service offerings, with a focus on “trust, strong regulation and supportive government policies”, he said.

“This is a place where you can put your money for investments for the long-term and be assured of the stability and trust here.”