Singapore MAS Chairman Gan Kim Yong: Many Single Family Offices Awarded with MAS Tax Incentives are from Emerging Markets, 1,700 Singapore Locals Employed by Single Family Offices Awarded with MAS Tax Incentives in 2023
18th October 2024 | Hong Kong
Singapore Deputy Prime Minister & Monetary Authority of Singapore (MAS) Chairman Gan Kim Yong reply to Singapore Parliamentary question (16/10/24): Many single family offices awarded with MAS tax incentives are from emerging markets, and more than 1,700 Singapore locals are employed by single family offices awarded with MAS tax incentives in 2023. Gan Kim Yong (16/10/24): “While many of the Single Family Offices (SFOs) awarded tax incentives are from emerging markets, their proportion among all SFOs awarded tax incentives has been relatively stable over the last few years … … As of 31 December 2023, more than 1,700 locals were directly employed by SFOs awarded MAS tax incentives. 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.”
“ Singapore MAS Chairman Gan Kim Yong: Many Single Family Offices Awarded with MAS Tax Incentives are from Emerging Markets, 1,700 Singapore Locals Employed by Single Family Offices Awarded with MAS Tax Incentives in 2023 “
Singapore MAS Chairman Gan Kim Yong: Many Single Family Offices Awarded with MAS Tax Incentives are from Emerging Markets, 1,700 Singapore Locals Employed by Single Family Offices Awarded with MAS Tax Incentives in 2023
Date: For Parliament Sitting on 16 October 2024
Name and Constituency of Member of Parliament
Mr Yip Hon Weng, MP, Yio Chu Kang SMC
Question:
To ask the Prime Minister and Minister for Finance (a) whether there is a recent trend of single family offices (SFOs) from emerging markets, such as the Middle East and China, being set up in Singapore; (b) if so, whether an update can be provided on the trend; and (c) whether there are specific considerations in ensuring the transparency and legitimacy of funds from these SFOs.
Answer by Mr Gan Kim Yong, Deputy Prime Minister and Minister for Trade and Industry, and Chairman of MAS:
1. While many of the Single Family Offices (SFOs) awarded tax incentives[1] are from emerging markets, their proportion among all SFOs awarded tax incentives has been relatively stable over the last few years.
2. All SFOs applying for MAS tax incentives are required to open accounts with financial institutions (FIs) in Singapore and are subject to the FIs’ due diligence checks. In addition, MAS screens the tax incentive applicants for adverse reports and money laundering or terrorism financing risks.
3. MAS issued a consultation paper in July last year, proposing to require all SFOs incorporated in Singapore, regardless of whether they have applied for a MAS tax incentive, to establish and maintain business relations with a MAS-regulated FI. This would subject all of them to anti-money laundering and countering the financing of terrorism checks by the FIs. A response to this consultation paper will be published soon.
Date: For Parliament Sitting on 16 October 2024
Name and Constituency of Member of Parliament
Mr Yip Hon Weng, MP, Yio Chu Kang SMC
Question:
To ask 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.
Answer by Mr Gan Kim Yong, Deputy Prime Minister and Minister for Trade and Industry, and Chairman of MAS:
1. 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.
2. 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.
3. As of 31 December 2023, more than 1,700 locals were directly employed by SFOs awarded MAS tax incentives[1]. 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.
Note 1 – These are the tax incentive schemes for funds under sections 13O and 13U of the Income Tax Act (ITA).
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