Qualification for Fund Tax Incentive Scheme by Foreign Family Offices' Investments in Local Shophouses and Assets

1 Mr Derrick Goh asked the Prime Minister and Minister for Finance (a) whether investments by foreign family offices for local shophouses and assets qualify for the Fund Tax Incentive Scheme; and (b) what is being done and whether more will be done to minimise the impact of such investments on local asset demand and inflation.

Mr Gan Kim Yong (for the Prime Minister): Investments made by single family offices in local shophouses or any Singapore immovable properties are not eligible investments under the tax incentive schemes for single family offices.

Accordingly, there is little impact on demand on local shophouses and properties arising from such schemes. It has also been explained in earlier Parliamentary Sittings that family offices have little impact on commercial and residential properties and inflation. [Please refer to "Growing Pool of Financial Professionals Due to Outflow of Talent Joining Singapore-based Single Family Offices", Official Report, 9 January 2023, Vol 95, Issue 79, Written Answers to Questions section; and "Data on Foreign Funds Flowing into Singapore through Family Offices", Official Report, 9 May 2023, Vol 95, Issue 103, Written Answers to Questions for Oral Answer not Answered by End of Question Time section.]