When considering where to place your assets, especially if you’re a high-net-worth individual or a family office, the choice of location can be crucial. You want a jurisdiction that offers security, stability, tax efficiency, and a conducive business environment. Singapore ticks all of these boxes and more, making it one of the top destinations globally for asset protection and investment.
Here’s why Singapore is considered a safe home for your assets:
1. A Preferred Choice for Asian High Net-Worth Individuals (HNW) and Family Offices
For years, Singapore has been the preferred choice for high-net-worth individuals and family offices in Asia, and increasingly, worldwide. The reason is simple: it offers a combination of privacy, stability, and excellent regulatory support, while also providing an ecosystem where wealth can be managed efficiently.
Family offices, in particular, have flocked to Singapore because it offers a supportive framework that allows them to preserve and grow wealth across generations. Unlike other jurisdictions, Singapore’s regulatory authorities work hand-in-hand with asset managers to create flexible and customized solutions. With around 700 family offices set up in Singapore as of 2022, it’s clear that the city-state is becoming a magnet for global wealth.
2. Low Tax Environment and Numerous Double Tax Treaties
One of the standout reasons why Singapore is an attractive destination for assets is its low tax environment. With no capital gains tax and one of the lowest corporate tax rates in the world, the country offers significant savings for individuals and corporations alike.
On top of that, Singapore has signed over 90 double tax treaties with countries around the world. This ensures that individuals and businesses don’t get taxed twice on the same income in different jurisdictions, a significant advantage for international investors and global families. These treaties cover everything from income tax to wealth and estate taxes, ensuring a high level of tax efficiency for asset holders.
3. Flexible Investment Structures
Singapore’s regulatory and financial systems are known for their flexibility, allowing investors to choose from a wide variety of structures depending on their needs. Whether it’s trust funds, investment holding companies, or partnerships, Singapore’s legal framework supports a range of asset-holding vehicles.
Regulators and accounting bodies in Singapore are also supportive of innovative solutions, ensuring that investors have access to modern, sophisticated ways to manage their wealth. Additionally, Singapore’s accounting and auditing standards are aligned with international best practices, adding another layer of credibility and safety for those who choose to park their assets in the city-state.
4. Safe, Stable, and Business-Friendly
Singapore consistently ranks as one of the safest and most stable countries in the world. There are no foreign exchange controls, which means that you can move money in and out of the country without restrictions. This makes it incredibly attractive for international investors who need the freedom to manage their funds globally.
In addition, Singapore has a pro-business government that actively works to foster a friendly environment for corporations and investors. This includes streamlining processes for company registration, investment approvals, and residency permits, ensuring that the business community can thrive without unnecessary red tape.
5. An Asset Management Powerhouse
As of 2023, Singapore has amassed a staggering SGD 4.9 trillion in assets under management (AUM). This makes Singapore the second-largest asset management hub in the Asia-Pacific region, trailing only behind China. The volume of assets managed in Singapore demonstrates the trust that global investors place in the country.
Moreover, Singapore is not just a regional leader. In the Global Financial Centres Index 2022, it ranked third globally, only behind the financial giants of London and New York. This ranking is a testament to Singapore’s resilience, innovative financial services sector, and ability to attract top talent and investment from around the world.
6. High Transparency and Low Corruption
Singapore’s reputation for transparency and the rule of law further bolsters its appeal as a safe haven for assets. In 2022, Singapore ranked 5th out of 180 countries in Transparency International’s Corruption Perception Index. This high ranking highlights Singapore’s commitment to fighting corruption and maintaining a clean business environment.
The country’s transparent legal and financial systems ensure that investors can operate with a high degree of trust. There are robust mechanisms in place to resolve disputes, and the government has a zero-tolerance policy for any form of bribery or corruption. This gives investors peace of mind, knowing that their assets are protected under a fair and transparent system.
7. A Safe City
In terms of physical safety, Singapore is one of the safest cities in the world. It ranks third in the Safe Cities Index by the Economist Intelligence Unit, underscoring its position as a secure environment for both residents and businesses. This safety extends to the security of assets as well, with stringent measures in place to safeguard financial and digital infrastructure from threats.
8. Strong Legal System
Singapore’s legal system is based on English common law, which is one of the most reliable and trusted legal frameworks globally. The sources of law in Singapore include the constitution, subsidiary legislation, and judge-made law. This common law foundation provides a predictable and fair legal environment, which is a critical factor when it comes to protecting assets.
Investors can also take comfort in Singapore’s judiciary, which is known for its independence and integrity. This ensures that any legal disputes can be resolved fairly and without interference.
9. Fully Compliant with International Standards
Singapore is a full member of the Financial Action Task Force (FATF), an intergovernmental body that sets international standards for combating money laundering and terrorist financing. Singapore’s compliance with FATF standards means that it is recognized as a secure and responsible location for managing wealth. In addition, Singapore is on the OECD whitelist, signifying that it adheres to the highest standards of transparency and international cooperation on tax matters. This commitment to global standards makes Singapore a trusted jurisdiction for asset protection.
10. Stable Economic Conditions
Finally, Singapore’s economic conditions make it an attractive place to store wealth. The country enjoys low inflation, stable interest rates, and a strong, stable currency. This economic stability means that assets held in Singapore are protected from the volatility seen in other markets.
For investors looking for long-term stability, Singapore offers a safe harbour where their wealth can grow without being subject to the economic turbulence that often affects other countries.
Conclusion
Singapore has rightfully earned its reputation as a safe and attractive home for assets. With its low tax environment, flexible investment structures, stable legal system, and reputation for transparency, it is no wonder that Singapore has become the preferred choice for high-net-worth individuals and family offices in Asia and beyond. Add to this the city-state’s economic stability, high safety standards, and its commitment to international compliance, and it’s clear why Singapore stands out as one of the best places in the world to safeguard and grow your wealth.
