It’s been said that “wealth is not determined by investment performance but by investor behaviour.”
For many affluent families and HNWIs (High Net Worth Individuals), strategic focus has led them to the Asia Pacific region. With bright prospects and strong growth momentum, some predict that financial wealth in Asia (excluding Japan) could outstrip the US by 2025.
Arguably one of the most prominent hubs for financial services, Singapore remains a trusted economic centre and an esteemed destination for asset and wealth management.
If you’re looking at ways to manage your wealth effectively, ensure long-term family legacy planning, and simplify the complexities of your financial portfolios, you may have toyed with the prospect of setting up a family office in Singapore.
You’re not alone - the family office ecosystem in Singapore has witnessed remarkable growth in recent years. It’s expected that the number of new single-family offices for 2024 will surpass the 300 that were added in 2023.
As global wealth continues to grow, it’s little surprise that wealth owners are setting their sights on Singapore. If you’ve found yourself asking, ‘Why set up a family office in Singapore?’ read on.
This blog seeks to clear the confusion around the Singapore family office system, exploring who needs a family office, as well as the pros and cons that every wealth owner should be aware of.
According to EDB Singapore, 50% of Southeast Asia’s top family businesses are in Singapore.
For those seeking sophisticated and personalised financial solutions, establishing a family office —a private organisation that handles a family’s financial and investment matters - is an effective solution.
There are now 1400 single-family offices in Singapore – Miki Doan, Practice Manager at Robert Half Singapore, says that this figure comes as little surprise.
Miki manages Robert Half's market-leading Financial Services division, providing bespoke recruitment solutions across sectors including Fund Management (Private Equity/Venture Capital/Hedge Fund/Family Office/Asset Manager), Fintech, Real Estate and Banking. She has a proven track record of identifying, placing, and integrating mid to senior level hires into vertical functions such as Finance & Accounting, Investment & Portfolio Management, Corporate Governance.
“One of the most common questions I get asked by HNWIs is, ‘Why set up a family office in Singapore?’ Put simply, Singapore boasts unique appeal when it comes to attracting investment. As an international financial centre, it’s a dynamic hub for multinationals - our stable currency, rule of law, and high quality of life make it truly compelling.”
“When I speak with affluent families, they are always complimentary about Singapore’s safety, security and family-friendliness profile. With excellent global connectivity and world-class education and healthcare systems, it’s an ideal base for HNWIs and their families,” Miki says.
The family office ecosystem has added diversity to Singapore’s financial sector, paving the way for a rich tapestry of wealth managers and professional service providers such as Robert Half.
Miki says, “While setting up a family office in Singapore has its advantages, it’s not without its complexities. Partnering with a reputable recruitment agency like Robert Half can be highly beneficial when it comes to navigating this unique landscape.”
Let’s explore some of the pros and cons associated with setting up a Singapore family office:
Singapore boasts attractive tax incentives for family offices, including a reduced corporate tax rate and exemptions on certain incomes. A ‘pro-business’ reputation and low tax environment make Singapore a strategic base for family offices. Schemes, including the Enhanced-Tier Fund Tax Exemption Scheme (Section 13X) and the Financial Sector Incentive (FSI) Scheme, offer tax incentives that reduce the tax burden on family-owned wealth management entities.
A stable political environment and a strong economy make Singapore a haven for wealth preservation. These resilient and reliable conditions provide the perfect conditions for affluent families looking to manage and grow their wealth securely.
Singapore’s strategic position as a gateway to the Asia-Pacific region offers unparalleled access to investment opportunities in a growing market. As Singapore continues to establish a foothold as a prominent global hub for family offices, it offers easy access to both Asian and international markets. Its geographic position makes it a strategic base for affluent families interested in Asian and Western markets.
As the Singapore family office community continues to flourish, so too does the pool of relevant finance experts, wealth managers, investment managers and legal advisors. As a global financial hub, Singapore provides a deep pool of talented professionals who can help families manage their wealth effectively.
In an industry that demands discretion, trust, and secrecy, it’s important to engage the right candidate – someone who can balance technical skills and soft skills to remain composed, professional and committed. Robert Half can help you to find the right candidate, streamlining the recruitment process to save you time and effort.
Singapore's well-established legal and regulatory system is designed to protect investors and ensure transparency. As a well-governed environment, Singapore provides affluent families with peace of mind (something that is far less attainable in less regulated jurisdictions). Singapore is an ideal base for those wanting to protect their wealth from mismanagement or unfavourable conditions. Together with strong privacy and confidentiality laws, it offers a secure location to manage wealth with sensitivity and discretion.
High costs – Establishing and maintaining a family office in Singapore is an expensive venture (particularly for families with smaller pools of wealth). Legal fees, licensing fees and office set-up expenses must be considered in the initial stages of establishing a family office. Furthermore, maintaining a family office requires ongoing operational costs such as salaries, rent and regulatory compliance fees.
Regulatory complexities – The regulatory landscape in Singapore can present some obstacles for those trying to set up a family office. While the regulatory framework is designed to favour businesses, it can be difficult to adhere to tax laws, investment regulations, and reporting requirements (especially without the right legal and financial expertise). Families must also be mindful of where these regulations limit their flexibility in investment strategies.
Governance challenges - Managing wealth effectively in a family office demands the creation of solid governance structures and decision-making protocols across multiple generations. This requires careful consideration and management to mitigate disputes relating to family involvement, ownership and legacy planning.
We know what you might be thinking – “Why set up a family office in Singapore if the process is so complex and time-consuming?”
Miki cautions wealth owners not to be deterred by the downsides of Singapore family offices.
She says, “There are pros and cons associated with all forms of wealth management. If you want to manage and grow your wealth over generations, you must understand all facets of your chosen strategy. It’s the only way to limit any surprises down the track.”
“Partnering with a reputable recruitment agency like Robert Half can offer several advantages to address the potential family office pitfalls (as outlined above). If you’re unsure about whether you’re someone who needs a family office, Robert Half’s extensive network of professionals can help. With a deep knowledge of the local Singapore market and regulatory landscape, they are uniquely poised to understand and manage your specific requirements and preferences.”
“While you need at least US$30 million in investable assets to meet the family office criteria in Singapore, it does pay to discuss your options with the experts at Robert Half,” says Miki.
Robert Half can assist in optimising your family office venture by:
Finding candidates with specific expertise in family office management, legal compliance, tax planning, and other relevant areas.
Streamlining the recruitment process to save you time and effort.
Leveraging established relationships with candidates to negotiate competitive rates.
Conducting targeted searches to identify candidates who align with your family office's goals and values.
Conducting thorough background checks and reference checks to mitigate risks associated with hiring unqualified or unreliable professionals.
Assisting with negotiating employment contracts and ensuring compliance with local labour laws.
“Every family office is unique. Being a bespoke, multi-generational fund management vehicle, it covers the holistic realm of financial affairs. From budgeting to family governance, real estate to risk management, the family office goes beyond mere wealth management,” says Miki.
“At Robert Half, we want to see you succeed. We’re with you every step of the way – from setting up your family office to finding the local talent who can help you maintain it. Our goal is to see you do well and achieve the legacy that you want for yourself and your family – now and in generations to come,” she says.
Contact Robert Half today to find out more about our family service offerings.
Singapore’s reputation for prosperity and stability has piqued the attention of many affluent families and HNWIs. As a trusted financial centre, it’s little surprise why many are choosing to set up a family office in Singapore. With the family office vehicle undergoing significant growth, there’s never been a better time to explore the opportunities to invest and preserve your wealth. By partnering with a reputable recruitment agency like Robert Half, you can navigate this complex terrain to leave a lasting legacy for generations to come.
What services can a family office provide?
A family office covers the holistic realm of financial affairs. From budgeting to family governance, real estate to risk management, the family office goes beyond mere management of a family’s wealth.
How can a family office help me manage my family's wealth?
As a bespoke, multi-generational fund management vehicle, a family office can provide a personalised approach to financial planning, investment management and legacy preservation. A family office centralises all aspects of your wealth to meet your relevant financial goals across generations.
What are the costs associated with setting up and running a family office?
Setting up and maintaining a family office in Singapore is an expensive venture (particularly for families with smaller pools of wealth). Set-up costs include legal fees, licensing fees and office set-up expenses. Ongoing expenses include salaries, rent and regulatory compliance fees.
