Singapore challenges London as hub for family offices

More than half (56%) of Asia's family offices are in Singapore.

Singapore is emerging as a formidable competitor to London as a hub for family offices.

In a joint report, KPMG and Agreus highlighted that Singapore has developed specific structures and regimes tailored for family offices, including tax incentives, to attract both the families behind them and professionals.

"European family office hubs face threats from newer hubs such as Singapore, which continue to proactively attract a growing number of family offices," KPMG and Agreus stated.

To date, Singapore houses 56% of Asia's family offices.

"We have seen a boom in family offices moving and setting up in Asian financial hubs, particularly in Singapore, over the past year," KPMG and Agreus noted.

The consistent promotion of family offices in markets like Singapore and growing wealth in Asia are expected to drive up demand for family office chief executives.

With the expected rise in demand for family office CEOs, the experts said families must develop competitive talent attraction and retention plans to attract talent.

Filling the demand for family office CEOs, however, may not be a significant problem in Asia.

According to the report, there is a large pool of qualified professionals in the major financial hubs in Asia.

Whilst there is a large pool of professionals, KPMG and Agreus underscored that "it is extremely important to find candidates who understand the workings of a family office."

Within Asia, more than a quarter of family office CEOs have backgrounds in investment management (36%) or banking (27%).

More than half of them also have a master’s degree, and 31% are family members.