The shift by some of Asia’s wealthiest families to Singapore is hardly new. The city-state’s reputation as a low-tax bastion of safety and stability has long made it a regional hub for the rich, from Thailand to Indonesia. Its attraction for wealthy Chinese has ramped up since the 2019 protests in Hong Kong made that city less appealing, and gathered steam following this year’s Covid lockdowns.
Singapore doesn’t provide detailed statistics about where its wealthy immigrants come from. But the explosive rise in family offices are symptomatic of the attraction for Chinese tycoons. The number of these offices almost doubled to about 700 at the end of 2021 from the previous year.
Source: https://en.wikipedia.org
The number of inquiries from Chinese clients jumped about 25% to 50% just before and after the Party Congress. Xi’s push to consolidate his leadership by promoting allies who’ve taken a tough stance against the private sector — along with the prospect of new inheritance taxes — have pushed some people to completely sever ties with their country.
The list of entrepreneurs establishing themselves in Singapore reads like a Who’s Who of Chinese startups circa 2018. Zhang Yiming, founder of TikTok’s ByteDance Ltd, frequently travels to Singapore. Crypto mogul Jihan Wu bought a storage vault dubbed Asia’s Fort Knox near the Changi Airport in September. And VIPKid founder Cindy Mi, whose company was a venture capital darling until Beijing cracked down on online education, is also a regular visitor.
The recent arrivals add to the list of established Chinese executives who already call Singapore home. Sean Shi, co-founder of hotpot maker Haidilao International Holding Ltd, paid S$50 million for a so-called good class bungalow in September. Fosun International Ltd co-founder Liang Xinjun has set up a family office.
The migration is not only from “push” factors but the “pull” factors of Singapore’s openness to rich entrepreneurs, political stability, ease of doing business and being a tax haven. Perhaps, we could learn something for our own MM2H program.
Reference:
Xi’s crackdowns drive Chinese billionaires to booming Singapore, The Edge CEO Morning Brief, November 16, 2022
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