Singapore’s growing appeal to wealthy Chinese has sparked tensions within the family office sector.
With increasing demand for family offices in Singapore, the Monetary Authority of Singapore (MAS) has tightened regulations, enlisting firms like EY to rigorously vet applicants for ties to financial crimes.
This move follows a significant money laundering case involving Chinese criminals, which tarnished Singapore’s reputation as a wealth hub.
Singapore’s stricter oversight has caused frustration among some affluent Chinese, who feel the added scrutiny is burdensome.
Despite this, the country remains a top destination for family offices, with numbers rising from 400 in 2020 to 1,650 by August 2024.
However, some wealthy individuals are now considering Hong Kong as an alternative due to the increased regulations in Singapore.
As Singapore continues to attract wealth, it faces the challenge of balancing robust regulations with maintaining its business-friendly environment.
