- Chinese families are trying to hide their fortune from the Communist Party.
- The country’s mega-rich have already booked flights to Singapore.
- The important Asian financial center checks all the criteria for migrating tycoons.
Singapore is experiencing an inflow of ultra-wealthy Chinese families trying to hide their fortune from a Communist Party that is more suspicious of them.
Beijing’s recent crackdowns on internet billionaires and tax-evading celebrities, along with three years of zero COVID, have prompted many wealthy Chinese to seek refuge abroad.
Insiders told that some of the country’s mega-rich have already booked flights to Singapore, concerned about the fate of their assets.
The important Asian financial center checks all the criteria for migrating tycoons.
For the past six decades, Singapore has been ruled by a single party, and labor strikes and street rallies are prohibited. Taxes are quite low, and the majority of the population is ethnic Chinese.
Recent Chinese arrivals have made their influence felt in Singapore, with some relocating to luxurious villas with waterfront views on Sentosa Island, which also has a theme park, a casino, and a prominent golf club.
“You can only imagine how they spend their money. It’s insane, “Pearce Cheng, CEO of AIMS, an immigration and relocation firm, agreed.
He remembers visiting a client’s party when he was served a rare Japanese “Yamazaki 55″ whisky costing roughly $800,000 per bottle.
Cheng’s firm also assists in the purchase of luxury condos, the hiring of chauffeurs, and the enrollment of children in private schools. It has even spent $61,000 on cigars.
The newcomers drive Rolls Royces and Bentleys and are frequently seen at top-tier golf clubs like as the exclusive Sentosa Golf Club, which charges international members $670,000 per year.
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My money is mine
Moving to Singapore puts China’s wealth beyond the grasp of Beijing, whose recent high-profile crackdowns have alarmed billionaires.
When Chinese regulators canceled a big IPO in 2020, Jack Ma, one of the most recognizable faces in Asian business, lost an estimated $25 billion.
Other Chinese tycoons are concerned that the Communist Party may apply similar pressure or possibly take over their enterprises at low rates, according to an accountant familiar with the situation.
“Moving to Singapore is about ensuring that the family money is protected and can last for future generations,” explained the accountant.
According to another industry insider, Singapore is becoming considered as a home rather than merely a backup plan, with clients telling him, “At least when I’m here, I know my money is mine.”
Haidilao, the founder of China’s largest hotpot chain, has established a so-called family office in Singapore.
According to the Monetary Authority of Singapore, the number of family offices – wealth management firms specialised to individual and group assets — increased from 400 in 2020 to 700 in 2021.
Loh Kia Meng, co-head of Dentons Rodyk’s private wealth and family office practises, projected that 1,500 family offices would have been established by the end of last year.
“I won’t be surprised if the total figure by the end of 2022 shows that one out of two new family offices originates from China,” Loh said.
Neutral zone
Analysts expect the outflow to continue even if China’s tight zero-COVID policy and limits have already been eased.
Political tensions between Beijing and Washington are fueling the desire of China’s wealthiest to relocate abroad.
According to Song Seng Wun, a regional economist at CIMB Private Banking, Singapore is a “very handy neutral zone” where the mega-rich may conduct business.
The city-state has skillfully handled its relations with both Washington and Beijing, maintaining close security connections with the US while retaining strong trading ties with China.
“Media attention on prominent wealthy individuals setting up family offices in Singapore cast the spotlight on our little island and stirred interest,” said Loh.
“If the worlds rich are congregating in Singapore, why not me?
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