Tracking Economic and Social Contributions of Single Family Offices from 2020 to 2024 and Plans to Attract SFOs
Ministry of FinanceSpeakers
Summary
This question concerns the metrics used to track the economic and social contributions of Single Family Offices (SFOs) and strategies to attract them, as raised by Mr Saktiandi Supaat. Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong stated that the Monetary Authority of Singapore monitors assets under management, employment, and wages to measure the sector's economic impact. While social contributions are not officially tracked by the government, the Minister noted increasing philanthropic activities among high-net-worth individuals and the establishment of new philanthropic intermediaries. To remain competitive, the government revamped the tax scheme application process, significantly reducing processing times from twelve months to three months, while improving bank onboarding efficiency. These efforts aim to balance capital attraction with the creation of quality jobs and social opportunities for all Singaporeans.
Transcript
2 Mr Saktiandi Supaat asked the Prime Minister and Minister for Finance (a) from 2020 to 2024, what are the metrics used to track the economic and social contributions of the Single Family Offices (SFOs) established in Singapore; and (b) how does the Government plan to continue attracting SFOs to establish themselves in Singapore while ensuring such capital inflows benefit all Singaporeans.
Mr Gan Kim Yong (for the Prime Minister): Developing Single Family Offices (SFOs) is part of broader efforts to grow Singapore's wealth management sector. When SFOs and other high net worth individuals (HWNIs) use wealth management products and services, private banks, other financial institutions and ancillary service providers benefit, and business revenue and jobs are generated. The Monetary Authority of Singapore (MAS) tracks metrics such as assets under management, employment and the wages earned to measure growth and contributions of the wealth management sector.
While MAS does not track social contributions from SFOs in Singapore, industry players such as Soristic Impact Collective1 track philanthropic giving, including those from HNWIs. Some HNWIs behind SFOs have engaged in philanthropic activities and established philanthropic entities, such as Tsao Foundation2 and Ishk Tolaram Foundation3. The recent establishment of new intermediaries such as ImpactSG4 and Philanthropy Asia Alliance5 also reflects growing interest in philanthropy among HNWIs in Singapore.
The Government will continue to work closely with industry to strengthen Singapore’s position as an international wealth management centre, including revamping the family office tax scheme application process. Most applications are now processed within three months, down from the previous 12 months; supporting HNWIs across their business, wealth and family interests; improving customer onboarding experiences including ensuring private banks' account opening processes are efficient and customer-friendly, while maintaining sound controls.
We must continue to strike the right balance, to ensure we remain competitive versus other wealth management centres. We will continue to enable our wealth management sector to thrive, so it can generate opportunities, create good jobs for Singaporeans, and contribute to our social and philanthropic sectors.