Single family offices reach 1,650 as wealth management sector booms

Chee Hong Tat said the sector could grow further through philanthropy, investing, and talent building.

Single family offices (SFOs) in Singapore have surged to 1,650 by the end of August, reflecting robust growth in the country’s wealth management sector.
 
From 400 SFOs receiving tax breaks from the Monetary Authority of Singapore (MAS) in 2020, the number grew to 1,400 by the end of 2023.

Chee Hong Tat, minister for Transport and Second Minister for Finance, highlighted Asia Pacific’s continued strong growth, faster than any other part of the world with a 4.9% growth by 2025. 

Singapore remains a key financial hub, with assets under management (AUM) rising by 10% to $5.41t, driven by increased valuations and net inflows into both traditional and alternative assets.

Wealth management AUM grew by over 8% in 2023, continuing its upward trend, with a five-year compounded annual growth rate of around 10%. 

Chee attributed Singapore’s appeal to investors to a strong rule of law, a stable regulatory regime, and a comprehensive ecosystem of wealth managers. Other factors include a high quality of life, family-friendly environment, strong education and healthcare systems, and global connectivity.

He added that MAS remains committed to fostering a conducive environment for wealth owners and family offices. It has recently provided guidance to financial institutions on implementing risk-proportionate due diligence checks to expedite bank account openings, and streamlined the tax incentive application process to reduce waiting times for family office funds.

Chee acknowledged the family office ecosystem's contributions but noted its potential for growth. He suggested that family offices should enhance their value proposition by engaging in philanthropy, private equity or venture capital investing, and talent development.