The Monetary Authority of Singapore (MAS) plans to eliminate the backlog of family office tax incentive applications by the end of the year, aiming for wait times to drop to around three months by early 2025.
Despite increased scrutiny following a $2.2 billion money laundering scandal, wealth inflows continue to rise, with assets growing about 10% last year, according to MAS’s latest annual report. The processing time for applications had extended to 12 months, but a fast-tracking scheme introduced this year is helping to reduce this delay.
MAS’s Deputy Managing Director, Leong Sing Chiong, announced that normal processing times are expected by early 2025. Additional measures, including a questionnaire targeting applications from China, have not deterred applications with clear documentation.
The number of single-family offices surged by 27% to 1,400 last year, reflecting the high volume of applications. MAS Managing Director Chia Der Jiun emphasized that stringent regulation remains crucial for the sector’s success and that the recent money laundering case has not affected the growth trajectory or regulatory standards.
The wealth management sector’s assets under management increased in line with the asset management industry, which grew by 10% to S$5.4 trillion in 2023. Private equity and venture capital assets reached over S$650 billion, growing at an annual rate of 24.6% since 2018.
Chia reaffirmed Singapore’s commitment to welcoming legitimate wealth, citing the new Philanthropy Tax Incentive Scheme for family offices. He also highlighted the ongoing need for vigilance in light of the money laundering case, with the regulator still determining the penalties for those involved.
