Single Family Offices as Continuing Growth Sector in Singapore
Ministry of FinanceSpeakers
Summary
This question concerns MP Yip Hon Weng’s inquiry regarding the growth of the single family office (SFO) sector and the strategies used to prepare Singaporeans for specialised roles within it. Deputy Prime Minister Gan Kim Yong stated that the sector is expected to expand, supported by technical skills maps and over 60 training courses developed by the Monetary Authority of Singapore. To enhance local expertise, the Financial Sector Development Fund provides course fee subsidies for accredited training programmes offered by the Institute of Banking and Finance and the Wealth Management Institute. As of 31 December 2023, more than 1,700 Singaporeans were directly employed by SFOs receiving tax incentives, alongside significant growth in ancillary services like legal, tax, and fund administration. These initiatives aim to strengthen Singapore's position as a trusted asset management hub while ensuring the local workforce is well-equipped to service the expanding family office ecosystem.
Transcript
6 Mr Yip Hon Weng asked the Prime Minister and Minister for Finance (a) whether the Ministry views the single family office (SFO) sector as a continuing growth area for Singapore; (b) if so, what steps are being taken to prepare the local workforce with the specialised skills and expertise needed to effectively service this sector; and (c) what is the estimated number of Singaporean Citizens currently employed within the SFO sector.
Mr Gan Kim Yong (for the Prime Minister): The Single Family Office (SFO) sector in Singapore is expected to continue to grow, given that Singapore is a trusted and well-regarded centre for asset and wealth management.
The Monetary Authority of Singapore (MAS), the Institute of Banking and Finance Singapore (IBF) and the Wealth Management Institute have worked together over the past few years to support the talent needs of the family office ecosystem. In 2020 and 2021, skills maps for family office executives and private banking professionals advising family offices were launched to highlight the technical skills and competencies that such professionals will need to acquire. Training providers took reference from these skills maps to develop relevant courses. Today, there are more than 60 such courses offered by established training providers. MAS, through the Financial Sector Development Fund, provides course fee subsidies for locals attending training programmes that are accredited by IBF under these skills maps.
As of 31 December 2023, more than 1,700 locals were directly employed by SFOs awarded MAS tax incentives1. Beyond direct employment, SFOs contribute to the growth of ancillary services as they engage local service providers, such as private banks, law firms, tax advisers, fund administrators and custodians.