More than $5.8 trillion is set to shift between generations in the Asia-Pacific region, fueling an unprecedented surge in family offices.
The number of single-family offices in Hong Kong and Singapore has quadrupled since 2020 to about 4,000 in both jurisdictions, with each managing about $1.3 trillion in offshore assets — second in the world only to Switzerland.
In recent years, both cities have been locked in fierce competition to attract family offices from around the world, offering generous tax incentives and other benefits. So far, Singapore has emerged as the leading destination, with more than 59% of family offices in Asia located in the city-state.
While Hong Kong gained 50 family offices in 2023, Singapore expanded at a much faster rate, from 400 in 2020 to 1,400 in 2023 and then to 2,000 in 2024 — a 43% increase in just the past year, according to the Monetary Authority of Singapore.
Singapore remains a top wealth management hub, even as high costs and tighter regulations pose challenges. However, rapid growth has brought increased scrutiny.
Last year, six single-family offices were linked to a money-laundering scheme, prompting authorities to slow the approval process for tax incentives. At the start of this year, Singapore’s monetary authority said the process would be streamlined. In addition, the city-state introduced a new suite of tax incentives aimed at encouraging local hiring and philanthropic giving.
Some local family offices have made headlines for their investments in Singapore’s deep tech startup scene. Canaan Ventures, for example, is backing early-stage companies in medtech and sensor technology. To further attract tech founders, the government has committed $332 million to build a dedicated facility for such startups.
Most of the family offices flocking to Singapore come from the region — especially mainland China, India and Indonesia — but the monetary authority expects increased wealth flows from Europe and North America.
Manish Tibrewal founded the Singapore-based multifamily office Farro Capital in 2022 with largely Indian clients. Now he is targeting families worldwide, including in the United Kingdom and the United States.
“Singapore offers stability, access to fast-growing Asian markets and a robust financial ecosystem,” he said.
Global investors seeking diversification increasingly view the region as a haven alongside Europe and North America.
Though single-family offices are not required to be licensed in the city-state, since they do not serve third-party clients, the monetary authority plans to require them to register with regulators and comply with certain money-laundering controls.
Establishing a family office in Singapore involves meeting several minimum requirements to qualify for tax benefits: holding at least $20 million in assets under management, employing at least one nonfamily-member investment professional, maintaining a bank account with a Singapore-based institution and spending at least $200,000 locally.
Farro aims to add at least 50 more families to its office in the next two years, Tibrewal said. “We’re optimistic.”