Singapore has unveiled enhanced incentives for family offices, further solidifying its reputation as Asia’s premier wealth management destination. The Monetary Authority of Singapore (MAS) announced updates to tax exemptions under the Section 13O and Section 13U schemes, aimed at attracting ultra-high-net-worth families while promoting sustainable and impactful investments.
The revised framework introduces stricter qualifying criteria for family offices, including increased minimum assets under management (AUM) and mandatory local investments. For the 13O scheme, applicable to single-family offices managing assets below SGD 50 million, the minimum AUM has been raised to SGD 20 million, with a commitment to grow this to SGD 50 million within two years. Meanwhile, the 13U scheme, targeting larger single-family offices managing SGD 50 million and above, now requires a more substantial allocation toward Singapore-based investments, reflecting the city-state’s broader goals of economic growth and sustainability.
These changes come as part of Singapore’s broader strategy to maintain its competitive edge amid growing competition from other wealth hubs like Hong Kong and Dubai. While the tightened requirements may initially seem restrictive, they are designed to attract long-term, high-caliber family offices that align with Singapore's strategic priorities, including green finance and technology innovation. The MAS has also emphasized its intention to work closely with industry stakeholders to ensure that the regulatory environment remains conducive to growth while safeguarding financial stability.
For high-net-worth individuals and their advisors, the revamped incentives present a compelling case for leveraging Singapore as a base for wealth preservation and legacy planning. As global geopolitical uncertainties and economic recalibrations persist, Singapore’s reputation for stability, transparency, and world-class infrastructure continues to resonate with affluent families seeking a secure and forward-looking jurisdiction.
The new measures are expected to foster continued growth in Singapore’s wealth management sector, reinforcing its position as a magnet for global wealth. With a record number of family offices established in recent years, the city-state is well-positioned to sustain this momentum while setting a benchmark for innovation and sustainability in the global financial landscape.
(Editors: admin)