Efforts extend beyond high-net-worth individuals to include next-gen entrepreneurs and family office principals fostering growth in the local economy.
SINGAPORE: Singapore is intensifying its efforts to attract not only high-net-worth individuals (HNWIs) but also future industry leaders, including next-generation entrepreneurs, family office principals, and fast-growth company founders. These initiatives are part of the broadened Global Investor Programme, aimed at securing permanent residency (PR) through relevant investments and credentials, according to Citywire Asia.
Matthew Lee, a former Economic Development Board (EDB) senior executive now at Kamet Capital, explained Singapore’s strategic approach, likening it to a “beehive.” He said, “We need to attract top-tier business owners and investors. You bring the ‘queen bee’ here, and the whole ecosystem will grow and thrive.”
By targeting these future leaders early, Singapore aims to embed long-term connections that encourage investment and growth locally.
Growth of Family Offices and Economic Impact
Singapore’s family office scene has surged, with the number of entities increasing from 400 in 2020 to 1,400 last year, according to HSBC’s Aik-Ping Ng. These offices contribute to job creation, hire financial experts, and engage private banks, legal firms, and fund administrators, generating revenue across various sectors, including real estate, retail, and ESG initiatives.
From 2020 to 2022, approximately 200 individuals were granted PR under this scheme, a marked contrast to the 1,000 PRs granted between 2007 and 2010.
Family offices also play a pivotal role in supporting startups and the broader financial ecosystem. Kamet Capital’s CEO, Kerry Goh, envisions Singapore as Asia’s Silicon Valley, highlighting the mentorship and capital family offices provide to local enterprises.
Challenges and Regulatory Landscape
Despite these contributions, tighter regulatory measures and talent shortages have posed challenges to the growth of family offices in Singapore. Goh emphasized the need for “stronger principals” and well-established family offices to manage the anticipated $2.5 trillion wealth transfer in Asia effectively.
Prime Minister Lawrence Wong reinforced the importance of wealthy individuals adhering to local rules, stating, “If you would like to be here, please follow our norms, follow our rules. If you think they are not for you, that is okay. You can take your money elsewhere.”
Fostering Long-Term Integration
To ensure lasting integration, new PRs are encouraged to participate in philanthropic and community efforts. Tax incentives further support meaningful contributions to society, aligning with Singapore’s vision of fostering long-term relationships and roots within the community.
Associate Professor Kenneth Goh of SMU’s Business Families Institute highlighted the importance of integrating these individuals into Singapore’s cultural and social fabric. He noted, “Focusing on building lasting connections and understanding within Singapore’s community is crucial for long-term success.”
Singapore’s strategic pivot aims to balance attracting wealth and fostering genuine, lasting contributions to its economy and society.
