Singapore bets big on family office rules amid HK, Dubai rivalry

This article was co-authored by Tessa Oh.

In July 2023, Singapore set out to propose a new framework for single-family offices (SFO), private business entities that aim to manage a single family’s wealth.

The upcoming rollout will likely attract more ultra-wealthy families to the city-state and offer them greater clarity on regulatory requirements, market observers say.

But the framework may not appeal to wealthy families who want simplicity and the best tax incentives, they note.

A condominium in Singapore/ Photo credit: Shutterstock

On November 6, the Monetary Authority of Singapore (MAS) responded to feedback on its proposed framework, and details on the rollout will likely be announced in due course.

The updated version lays out the criteria for SFOs to qualify for licensing exemptions, introduces new notification and reporting requirements, and strengthens protections against potential money-laundering risks.

“(The framework) would probably streamline the application or approval timeline and attract more families to Singapore that are looking for transparency and certainty in the application process,” says Gaven Koh, head of risk and compliance at Wrise Wealth Management Singapore.

For instance, Singapore’s SFO tax incentive schemes are contingent on certain spending thresholds – an additional requirement compared with those of Hong Kong and Dubai, the two other prominent Asian wealth hubs, Koh says.

Hong Kong does not have targeted tax schemes like Singapore’s, which means there are fewer complex tax obligations as well. Dubai is also a nearly tax-free environment, and the simplicity in tax compliance will likely draw in families, he adds.

Tale of three cities

Once the new scheme is launched, Singapore will have the most comprehensive framework compared to Hong Kong and Dubai, notes Koh.

Dubai’s skyline/ Photo credit: Unsplash

For one thing, Hong Kong still lacks a dedicated framework for SFOs, which means there’s some ambiguity in its regulations. Families will need to carefully structure their vehicles to avoid breaching any licensing requirements there, Koh says.

Higher disclosures, higher costs

Other incentives