Singapore competes for Asia’s rising wealthy, targets family offices with strategic incentives

By 2028, Asia anticipates a nearly 40% surge in its affluent population compared to 2023. Consequently, the continent is poised to surpass North America as the primary residence of the ultra-wealthy people, with Singapore leading the way in this transformative shift.

Real estate consultancy Knight Frank reports that Asia’s affluent population is projected to experience accelerated growth compared to other regions. The number of wealthy individuals is expected to increase to approximately 35 people per day from 2023 to 2028.

Seizing the opportunity to compete for the title of top rich city and attract Asia’s richest people, Singapore has implemented strategies, including tax incentives and a business-friendly regulatory framework. These measures aim to entice 1,100 family offices, overseeing assets exceeding US$4 trillion, to consider relocating to Singapore.

However, Knight Frank cites that family offices have little influence on the country’s residential property market, which could be a barrier to attracting a wide range of wealthy people.

The consultancy firm asserts that fostering a more substantial commitment from private institutions could pave the way for extensive investment in the near future.

Despite such challenges, Knight Frank believes Singapore’s asset management industry is likely to grow “rapidly”.

Singapore is expected to rank among the world’s top three wealth management centers alongside Hong Kong and Switzerland by 2027, driven by the country’s expected financial wealth growth of 9%.

However, this outcome depends on the extent to which the country manages to implement a regulatory framework to stimulate real investment in the local economy, Knight Frank says.

As outlined in the report, Singapore has made progress in attracting emerging wealth from Indonesia, Thailand, Malaysia and Vietnam.