THE number of single family offices (SFOs) in Singapore continued to grow last year to exceed 2,000 by the end of 2024.
That’s according to Chee Hong Tat, the second minister for finance and deputy chairman of the Monetary Authority of Singapore, on Tuesday (Jan 14).
In mid-September, Chee said the central bank had awarded tax incentives to around 1,650 SFOs by the end of August. This means the number has grown more than 21 per cent in the last four months of 2024, and swelled by at least 42.9 per cent compared with 1,400 as at end 2023. Last year’s increase was more than double the 300 added in 2023 as well.
Chee, who is also minister for transport, said that Singapore’s pro-business and pro-innovation stance provided investors with a stable and well-regulated environment where they can take a long-term view.
“MAS wants to continue to work closely with the sector to see how we can grow further; there will be more interest from investors to look at Singapore as a key node,” he said.
Speaking at the UBS Asia Wealth Forum, Chee added that financial services and wealth management will remain an important growth area for Singapore this year.
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Singapore is emerging as one of Asia’s principal hubs for family offices, privately held companies that manage the wealth of ultra-rich families. Apart from the city-state’s stability, experts attribute the growth, from just 400 SFOs in 2020, to Singapore’s status as a financial hub, as well as incentives from the government.
Last year, Singapore’s economy grew at a faster-than-expected 4 per cent, from 1.1 per cent in 2023. Advance estimates from the Ministry of Trade and Industry show growth from the services-producing industries, which include financial services, at 4.1 per cent. That figure is higher than the 3.6 per cent from the goods-producing sectors.
But the city-state’s growth could moderate this year, no thanks to higher tariffs from incoming US President Donald Trump.
“2025 could bring new uncertainties because of Singapore’s very high-trade sensitive nature,” said Tan Min Lan, Asia-Pacific head of UBS Global Wealth Management’s Chief Investment Office.
She noted that Singapore’s economic growth eased in 2019 from 2018, during the trade war under Trump’s first presidency.
In 2019, the city-state expanded by 0.7 per cent, from 3.4 per cent in 2018.
However, Tan notes that Singapore’s deep fiscal reserves will be able to cushion the impact of slowing growth.
