Singapore’s Monetary Authority (MAS) has announced a fresh set of regulatory requirements for single-family offices (SFOs), reflecting the city-state’s growing role as a global hub for ultra-high-net-worth individuals (UHNWIs). The move aims to ensure transparency and sustainability as the number of family offices in Singapore surpasses 1,100—a figure that has more than doubled since 2020.
The new measures, unveiled in a statement earlier this week, impose stricter eligibility criteria for tax incentives under the Section 13O and 13U schemes, which exempt qualifying family offices from tax on specified income. Effective immediately, SFOs applying for these incentives must manage a minimum of SGD 20 million in assets under management (AUM), up from SGD 10 million, with a clear roadmap to increase AUM to SGD 50 million within five years. Additionally, family offices must now allocate at least 10% of their assets—or SGD 10 million, whichever is lower—into Singapore-based investments, up from the previous requirement of 5%.
The MAS also introduced new stipulations to drive local economic participation. Family office staff numbers must include at least two Singapore-based employees, and a portion of the family office’s philanthropic contributions must be directed toward initiatives with tangible benefits for Singapore. These changes align with the government’s broader strategic goals of fostering economic dynamism and ensuring that the influx of high-net-worth families contributes meaningfully to the local ecosystem.
For UHNWIs and their advisors, these evolving regulations signal Singapore’s intent to strike a balance between welcoming global wealth and safeguarding national interests. While the city-state remains a magnet for affluent families seeking stability and favorable tax regimes, the heightened compliance requirements may prompt a recalibration of investment strategies and operational structures. However, the long-term implications are clear: Singapore is positioning itself not merely as a wealth haven, but as a sophisticated nexus for sustainable and impactful capital deployment.
(Editors: admin)