The country is also hoping to attract more high net worth individuals, said Mr Chee, noting that Singapore is being seen as a “stable, trusted hub” by these individuals amid a more uncertain global environment.
“Some of them may want to set up business operations. Some of them may want to invest in existing companies. Some of them may want to start new companies. Some of them may want to list on the SGX,” said the minister.
“So, these are different possibilities that we want to explore with the high net worth individuals and families who are looking at Singapore as a trusted, stable place where they can make long term plans.”
GROWTH IN WEALTH MANAGEMENT SECTOR
Singapore’s wealth management industry has seen “healthy growth”, the minister said, noting that the compound annual growth rate for private banking client assets over the last five years was “more than 8 per cent every year”.
Overall, Singapore’s wealth management asset under management (AUM) recorded a growth of more than 8 per cent in 2023. The five-year compounded annual growth rate of wealth management AUM came up to about 10 per cent, based on figures reported last year.
The number of single family offices in Singapore stood at 1,650 at the end of last August, up from 1,400 such offices as at the end of 2023.
That said, media reports have noted that the world’s super-rich may be moving their wealth elsewhere amid a stricter regulatory environment in Singapore following the S$3 billion (US$2.34 billion) money laundering case from 2023.
Asked if the MAS has noticed the trend of high net worth individuals moving their investments and family offices to new hotspots like Dubai, Mr Chee said with the financial industry being a “very global” one, Singapore is “very used to competition between different financial sectors, whether it’s in wealth management or in other areas”.
“I think the key is this – there is enough growth in the wealth management area globally for there to be multiple wealth management centres around the world, each playing to our strengths,” he added.
“We continue to offer value to clients who want to come to Singapore (by) working closely with the industry, understanding what their needs are, and then bringing together different government agencies that can help to facilitate the families or the individuals who want to manage their wealth in Singapore.”
The MAS announced on Jul 4 that nine financial institutions have been slapped with penalties of S$27.45 million for breaches related to the S$3 billion money laundering case.
The nine financial institutions are: Credit Suisse, UOB, UBS, UOB Kay Hian, Citibank, Julius Baer, Blue Ocean Invest, Trident Trust Company and LGT Bank.
Responding to a question on how there is a perception that penalties appear to focus mostly on international financial institutions, Mr Chee said: “When we deal with regulatory cases, MAS will assess fairly and objectively the severity of the different offences and to what extent the actions are required and the quantum of the penalties.
“So, it’s not whether it is a local or international financial institution, but it is about what the nature and the extent and the severity of the lapses and offences that have been committed.”
