“WHEN I’M HERE, I KNOW MY MONEY IS MINE”
Relocating to Singapore puts the wealth of China’s richest beyond the reach of Beijing, whose recent high-profile crackdowns have rattled billionaires.
Alibaba Group co-founder Jack Ma, among the most recognisable Asian tycoons, lost an estimated US$25 billion when Chinese regulators pulled the plug on a blockbuster initial public offering (IPO) in 2020.
Other Chinese tycoons fear the Communist Party could apply similar pressure or even take over their businesses at low prices, an accountant familiar with the situation told AFP.
“Moving to Singapore is about making sure the family wealth is kept safe and can last for several generations,” the accountant said.
Singapore is increasingly viewed as a home rather than just a backup plan, another source in the industry said, adding that clients had told him: “At least when I’m here, I know my money is mine.”
One of the founders of China’s largest hotpot chain, Haidilao, also recently set up a family office in Singapore.
The Monetary Authority of Singapore estimates that the number of family offices – wealth management companies dedicated to individual and group assets – rose from 400 in 2020 to 700 in 2021.
Loh Kia Meng, co-head of private wealth and family office practices at law firm Dentons Rodyk, estimated that 1,500 family offices would have been set up by the end of last year.
“I won’t be surprised if the total figure by the end of 2022 shows that one out of two new family offices originates from China,” he said.
“HANDY NEUTRAL ZONE”
The outflow is expected to continue even though China’s strict zero-COVID policy and curbs have now been lifted, analysts said.
Political tensions between Beijing and Washington are reinforcing the desire of some of China’s richest to move abroad.
Singapore is a “very handy neutral zone” where the mega-rich can do business, said Song Seng Wun, a regional economist with CIMB Private Banking.
The country has deftly managed its relations with Washington and Beijing, maintaining close security ties with the United States while preserving robust trade links with China.
“Media attention on prominent wealthy individuals setting up family offices in Singapore cast the spotlight on our little island and (has) stirred interest,” said Loh.
“If the world’s rich are congregating in Singapore, why not me?”