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14-07-2023, 11:33 AM
Bloomberg
Thu, 13 July 2023 at 11:23 am SGT
By Andy Mukherjee
(Bloomberg Opinion) — Singapore has seen a boom in family offices. The number of investment vehicles that oversee assets exclusively for the benefit of a single ultra-rich household has risen 22-fold over the past five years, thanks to liberal tax exemptions. But what have the wealthy brought to the table?
The short answer: Very little. The assets of those who claim these fiscal sops made up barely 2% of the US$4 trillion managed in the Asian city-state in 2021, and their linkages with its economy are practically non-existent. While opposition lawmakers would love to blame the uber-affluent foreigners for some of the property-market froth and high cost of living, the reality is that no family office has done a local residential-property transaction in the past six years
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According to Singapore's rules that were revamped last year, the threshold for the so-called 13U tax exemption is at least S$50 million (US$37 million) in assets, and 10% of it or S$10 million — whichever is lower — should be invested in locally listed securities or startups. There had been no such stipulation earlier. Depending on their size, family offices must also spend S$500,000 to S$1 million in the domestic economy each year, up from S$200,000.
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Of the minimum three investment professionals they’re required to hire in Singapore, at least one must now be a nonfamily member.
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Like with any industry, lawmakers want to know how many jobs family offices are creating for locals. (Answer: 900 in three years through June 2022.) Also, given the already wide income gaps, the government doesn’t want its red carpet to become an easy pathway to citizenship — only 30 family-office owners have been granted permanent residency under the city’s Global Investor Program.
By being too choosy, Singapore may lose out.
https://sg.finance.yahoo.com/news/commen...48335.html
Thu, 13 July 2023 at 11:23 am SGT
By Andy Mukherjee
(Bloomberg Opinion) — Singapore has seen a boom in family offices. The number of investment vehicles that oversee assets exclusively for the benefit of a single ultra-rich household has risen 22-fold over the past five years, thanks to liberal tax exemptions. But what have the wealthy brought to the table?
The short answer: Very little. The assets of those who claim these fiscal sops made up barely 2% of the US$4 trillion managed in the Asian city-state in 2021, and their linkages with its economy are practically non-existent. While opposition lawmakers would love to blame the uber-affluent foreigners for some of the property-market froth and high cost of living, the reality is that no family office has done a local residential-property transaction in the past six years
......
According to Singapore's rules that were revamped last year, the threshold for the so-called 13U tax exemption is at least S$50 million (US$37 million) in assets, and 10% of it or S$10 million — whichever is lower — should be invested in locally listed securities or startups. There had been no such stipulation earlier. Depending on their size, family offices must also spend S$500,000 to S$1 million in the domestic economy each year, up from S$200,000.
......
Of the minimum three investment professionals they’re required to hire in Singapore, at least one must now be a nonfamily member.
......
Like with any industry, lawmakers want to know how many jobs family offices are creating for locals. (Answer: 900 in three years through June 2022.) Also, given the already wide income gaps, the government doesn’t want its red carpet to become an easy pathway to citizenship — only 30 family-office owners have been granted permanent residency under the city’s Global Investor Program.
By being too choosy, Singapore may lose out.
https://sg.finance.yahoo.com/news/commen...48335.html
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