Recently, overseas media reported that a large amount of Chinese wealthy capital has flowed out of Singapore, forming an "exodus trend," which has attracted widespread attention.

The report pointed out that the tightening of Singapore's regulatory cycle, coupled with slower family office approvals, has made some clients feel a decline in efficiency and loss of confidence, leading them to choose to leave... Why is that?

1. Starting from the 3 billion yuan money laundering case that shocked the world!

In 2023, Singapore exposed a major money laundering case worth 3 billion Singapore dollars, shaking the financial circle. The main involved funds came from online gambling, telecom fraud, etc. This case not only struck public confidence but also made the international financial circle begin to question whether there are loopholes in Singapore's anti-money laundering mechanism. Immediately after, the Singapore government took swift action. In 2025, the Monetary Authority of Singapore (MAS) introduced a series of new regulations, comprehensively upgrading the standards for family offices, cryptocurrency assets, and wealth inflows. For example, the Financial Services Modernization Act (FSMA):

  • Unlicensed crypto platforms will be forced to shut down

  • Family office applicants need to disclose family members (including current or former spouses, adopted children, stepchildren, etc.).

  • Employing local Singapore employees, with a capital threshold starting at 250,000 Singapore dollars

Source of the image: Baker Mckenzie

This means that now setting up a family office in Singapore not only needs to explain the source of assets, but also expands the disclosure requirements for "beneficial owners" (beneficial owners), requiring detailed information about the family structure. These documents are not just submitted once, but need to be continuously tracked and updated annually, which may touch on the privacy and cost bottom line for some Chinese wealthy individuals.

According to data released by Henley & Partners: In 2024, Singapore had a net inflow of 3,500 millionaires, and it is estimated to drop to 1,600 in 2025, a direct halving!

2. Regulatory measures in various financial sectors are intensifying

Aside from the increasingly strict review of family offices, Singapore's regulation of cryptocurrencies is also being significantly tightened. A few years ago, the cryptocurrency sector in Singapore was quite prosperous - low barriers, loose regulations, many projects and funds flocked in. In 2019, the Monetary Authority of Singapore (MAS) introduced the Payment Services Act, which required digital currency platforms to have licenses, but allowed companies to apply for licenses while operating, a "start working first then review" model that made cryptocurrency companies feel convenient. As a result, international giants like Binance, Crypto.com, and FTX set up branches in Singapore, and the entire industry was very hot.

Source of the image: LIBRARY OF CONGRESS

But the good times didn't last long. In 2022, the Three Arrows Capital based in Singapore collapsed, its founder went missing, and dragged down several other cryptocurrency platforms such as Voyager and Genesis, causing the market to fall into chaos. This incident sounded a clear alarm for regulators, exposing the risks of Singapore's previous "watering down" regulation.

Source of the image: The Business Time

Therefore, since 2022, Singapore has carried out a comprehensive整顿 of cryptocurrency platforms: the licensing application threshold has been greatly increased, and the compliance requirements for platform governance structure, anti-money laundering (AML), and customer identity verification (KYC) have become very strict. MAS abolished the "work first then review" gray operations, and by June 30, 2025, all unlicensed digital currency platforms must be shut down. These hard-hitting policies made many cryptocurrency entrepreneurs find it difficult to continue to survive, and many chose to leave Singapore, moving to regions with more relaxed regulations.

The result is that many wealthy individuals who held a lot of cryptocurrency assets withdrew their investments and moved to Hong Kong, Dubai, and other "more friendly" financial centers.

In the private banking sector, there is also a "survival of the fittest" trend: customers with strong business potential, who can generate complex investment structures or cross-border configuration value, are prioritized; while those who only do traditional deposit and loan or settlement business and contribute little may be marginalized. Inactive companies are directly removed.

According to data from the Accounting and Corporate Regulatory Authority (ACRA) of Singapore, as of the end of 2024, the total number of deregistered companies in Singapore reached 27,800, an increase of nearly 20% year-on-year, of which a considerable portion were "non-substantial business" holding-type shell companies.

(Specific list can be checked:

https://www.acra.gov.sg/compliance/striking-off-entities/striking-off-final-gazette-2024?utm_source=chatgpt.com)

Comparing with the Hong Kong financial market

Efforts to attract capital backflow

The Hong Kong capital market is more active, especially with its IPO scale leading globally, which is very appealing to entrepreneurs preparing for listing or already listed.

As of this September, the Hong Kong Financial Services and Treasury Bureau (FSTB) announced that over 200 family offices have established or expanded their businesses in Hong Kong, completing the key performance indicators set in the 2022 policy statement ahead of schedule.

Source of the image: Hong Kong Government News News.gov.hk

Several billion-dollar IPOs have been launched successively, such as Zijin Gold, which is expected to raise 3.2 billion US dollars, greatly enhancing the "capital attraction field" of the Hong Kong stock market. For entrepreneurs planning to list in Hong Kong or already listed, setting up a family office in Hong Kong becomes a natural choice, which objectively promotes the return of capital and talent from Singapore.

Source of the image: Reuters

At the same time, Dubai is becoming increasingly attractive. There is no personal income tax there, and profits can be freely transferred. Foreigners can also buy houses in designated free zones, with property registration and transfer processes being very mature. The Abu Dhabi Global Market (ADGM) saw a 245% growth in asset management scale in 2024, and the Dubai International Financial Centre (DIFC) had a total managed asset amount exceeding 700 billion US dollars by early 2024, with a rapid increase in the number of wealth and asset management institutions, providing a good "institution-friendly + toolbox" for family offices, funds, and Web3 capital.

In summary, the migration of family offices in Singapore is not simply "running away", but rather seeking a new balance between regulatory environment, capital efficiency, and service supply.

Facing competitive pressure

Singapore quickly introduces new family office policies

Now, relying on strong financing capabilities and an efficient execution system, Hong Kong attracts part of the capital backflow; Dubai, on the other hand, is rapidly becoming an emerging wealth hub due to zero individual taxes, free fund transfers, and mature wealth management. At the same time, Singapore is also actively responding to market changes.

Just yesterday (September 29), during the Global Family Office Summit (GFO), Singapore's Minister for Transport, Second Minister of the Ministry of Finance, and Deputy Chairman of the Monetary Authority of Singapore, Chee Hong Tat, announced several new family office policies, covering accelerated approval, simplified declaration, expanded scope of tax incentives, optimized bank account opening processes, and enhanced high-value-added functions. He emphasized the importance of "high-standard compliance" and "high-efficiency service", demonstrating the determination to continuously enhance institutional attractiveness in the global wealth competition.

Original article: https://www.toutiao.com/article/7556322628340875791/

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