What makes Singapore a critical global wealth hub?

75% of  assets under management (AUM) in SG are from diverse overseas sources.

Given the growth in its family offices, improved global connectivity, and attractive tax and regulatory framework, Singapore is becoming a critical global wealth hub.

Data from Knight Frank showed that 75% of assets under management (AUM) in SG are from diverse overseas sources.

Amongst these overseas sources are North America and Europe which contribute about 17% to 18% each to Singapore’s AUM. Meanwhile, Assia accounts for 33% of the Lion City’s AUM.

In 2022, Singapore also saw a sevenfold growth in family offices and a threefold jump in its the number of single-family offices that provide wealth management.

Knight Frank believes Singapore will attract more Asian and global wealth residents in the coming years, given its "very attractive tax and regulatory framework."

“Singapore has in recent years made particularly large investments to strengthen its foothold as a global wealth hub, most notably via tax perks that incentivise the setting up of family offices,” Knight Frank said.

Adding to it Singapore's attractiveness is being a well-connected city.

“Global mobility has long been a must-have for wealthy investors, fuelling demand for second passports, visas and citizenships as competition to attract footloose wealthy heats up,” KF said.

“Singapore’s arrival in the top 10 rankings for the number and quality of flight connections post-Covid in 2022 underlines the city-state’s steadily increasing global significance,” Knight Frank added.

Nicholas Keong, Knight Frank Singapore head of Private Office, said Singapore's political stability, low corruption rates and transparent public institutions have also contributed to its attractiveness to investors. 

“It will remain a perfect base for businesses and investors seeking to capture the upside of the huge growth potential in Asia in the coming decade,” Keong added.