The competition to attract family offices is growing across Asia. Bing Li, Head of Asia Pacific at Bloomberg, points to various reasons why countries are eager to entice wealthy families to establish family offices within their borders.
In recent years, several ultra-wealthy individuals like Ray Dalio, Sergey Brin, and Shu Ping have set up family offices in Singapore. In response, Hong Kong introduced new measures in 2023, including a tax exemption law for single-family offices and initiatives like the Network of Family Office Service Providers to create a supportive environment.
Other Southeast Asian nations are following suit. Indonesia is crafting regulations for family offices, with details expected in October 2024, while Malaysia announced a zero-tax rate for family offices as part of its strategy to become a global financial player.
Paul Chua from the Bank of Singapore notes that family offices are on the rise due to growing wealth and wealth transfers in Asia. Countries in the region are keen to attract these offices for the economic and social benefits they bring. Bing Li adds that attracting family offices can diversify economies and drive investment.
When deciding where to establish, family offices consider factors like the availability of talent, economic stability, favorable tax regimes, and a robust financial system. Li and Chua both agree that there is no one-size-fits-all approach, but key considerations include regulatory environments, investment opportunities, and supporting professional services.
Experts believe that Hong Kong and Singapore will continue to lead the family office market in Asia, though competition will intensify. Both markets offer favorable policies and global investment access, and they are expected to continue learning from each other as they develop their family office ecosystems.
