Singapore’s Rising Role in the Family Office Sector
Singapore’s growing interest in family office services comes as demand for wealth planning and other related services continues to surge. As family offices typically follow wealth, Asia’s rapid economic ascent over recent decades has paralleled a significant increase in both income and family offices in the region.
This trend is expected to persist as long as Asia’s economic fundamentals remain strong and wealth transitions across generations over the next 10 to 20 years.
Many family offices in Asia are now in their first or subsequent generation and are preparing to transfer their wealth, further driving the demand for services such as succession planning.
Family offices, specialized entities managing the financial—and sometimes non-financial—affairs of ultra-high-net-worth families, are finding Singapore to be an attractive destination. According to the Monetary Authority of Singapore, the number of family offices in the country grew fivefold between 2017 and 2019.
This surge highlights the appeal of “Singapore Inc.,” a country known for its stable legal system, favorable tax policies, and high standard of living. Thanks to its strong regional connections and expertise in managing cross-jurisdictional and cross-cultural issues, Singapore is emerging as the ideal neutral hub for family offices looking to invest in Asia.
Banks like DBS offer tailored wealth planning strategies to ensure the continued prosperity of families. Their comprehensive solutions allow families to plan for the future, safeguard their wealth, and ensure that their assets are managed according to their wishes.
A standout example is the DBS Multi Family Office Foundry VCC, the first multifamily office in the world to be launched in Singapore with bank backing, utilizing the Singapore Variable Capital Company structure. This innovative approach offers ultra-wealthy families a reliable environment in Singapore for managing their assets without having to establish a full family office.
Table of Contents
Key Components of Family Office Services
Succession Planning
Every family must address the issue of passing wealth to the next generation. The best strategy depends on various factors, including the location of assets and the family’s domicile. Proper planning ensures that wealth is transferred efficiently and according to the family’s wishes.
Family Office
At its core, a family office is an organization that professionally manages a family’s wealth and investments throughout their lifetime and beyond. Depending on a family’s needs, additional services may be offered, ranging from asset management to advisory roles in financial matters.
Charity
Philanthropy is a powerful way to make a lasting impact. Beyond traditional donations to hospitals and schools, families can now support social enterprises or engage in impact investing, where social good takes precedence over financial returns. This approach aligns with the family’s values and fosters measurable positive change.
Tax Planning
Cross-border taxation can be complex, especially when family members live abroad or assets are spread across countries. With proper tax planning, families can minimize exposure to complex tax regulations and avoid unnecessary tax burdens.
Liquidity Planning
Ensuring financial stability for future generations is a top priority for families. Advanced life insurance options and liquidity planning tools provide a safety net, helping families prepare for unexpected events and secure their future.
In conclusion, Singapore’s robust infrastructure and favorable regulatory environment are positioning the city-state as a central hub for family offices looking to manage and grow their wealth across generations. With comprehensive services and innovative structures, Singapore continues to attract the world’s wealthiest families seeking stability, growth, and security for their legacies.
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