This trend stems from the need to secure their wealth from the Chinese Communist Party after the events involving some billionaires. The number of wealth management firms rose from 400 in 2020 to 700 in 2021. But the city-state is increasingly seen as a place of residence rather than an alternative plan.
Singapore ( / Agencies) – The super-rich Chinese are moving to Singapore in the hope of protecting their assets from the Chinese Communist Party. The repression of Beijing and the three years of “Covid zero” policy made many families seek refuge abroad, some specialists explained.
The city-state has been ruled by the same party for six decades and strikes and street protests are prohibited. Taxes are relatively low and the population is predominantly ethnic Chinese. Many Chinese nationals have moved to luxury villas overlooking the sea on the island of Sentosa, which is also home to a theme park, a casino and a prestigious golf club.
Pearce Cheng, CEO of Aims, a company that provides immigration and relocation services, told the Agence France Press who attended the party of a client who asked for a rare Japanese whiskey valued at up to $800,000 a bottle to be served. Cheng’s company also helps them find luxury condos, hire drivers and enroll their children in private schools. One of her clients once bought some cigars to the tune of $61,000, she said.
“Many of them are young, wear designer fashion clothes and tend to be reserved and dine with each other, which is not surprising,” adds Benny Teo, chief executive of Blazon, a golf consultancy.
After the case of billionaire Jack Ma, who lost around $25 billion in 2020 after Chinese authorities clamped down on his deals, more and more of the wealthy are seeing Singapore as their new home rather than a backup plan. “Moving to Singapore means making sure that family wealth is kept safe and can last for several generations,” said the CEO of Blazon.
According to the Singaporean authorities, wealth management companies dedicated to individual and collective wealth, called family officeswent from 400 in 2020 to 700 in 2021. “I wouldn’t be surprised if the total figure for 2022 shows that one in two new family offices it comes from China,” said Loh Kia Meng, head of this type of practice at Dentons Rodyk law firm. According to some analysts, the trend may continue even with the end of the “covid zero” policy.
“The attention of the mass media on the wealthy and prominent people who establish family offices “In Singapore, it sparked interest in our country,” Loh said. “If the world’s billionaires gather in Singapore, why don’t we come too?” is what the Chinese super-rich are probably asking, Loh added.