China’s super-rich have fled Singapore. Now they want to come back

A year ago, wealthy Chinese families were unhappy with Singapore. The rules felt onerous and nightlife was suppressed. Other cities seemed easier or even more exciting.

Now they want to come back.

Family office advisers and asset managers say they are seeing renewed interest in Singapore from wealthy Chinese clients who have moved to other financial centres, as increased scrutiny from Beijing and geopolitical turmoil make Singapore’s stability look attractive again.

This reversal highlights how rapidly the calculus of Asia’s wealthy is changing.

Singapore has emerged as a preferred destination for wealthy mainland Chinese looking to diversify their assets and distance themselves from Beijing, especially after the 2019 Hong Kong protests and subsequent national security crackdown.

But its appeal waned after a $3 billion money laundering scandal broke out in 2023 and increased scrutiny of wealthy clients and family offices. Tighter compliance checks and longer bank onboarding and residency requirements have led some Chinese families to head to jurisdictions deemed easier or more attractive, such as Hong Kong, Dubai and Tokyo.

But what was once seen as restrictive is increasingly seen by some as a source of security.

“The reason they came to Singapore in the first place at the time was because Chinese policies were impacting Hong Kong, which is much closer to Singapore than Singapore,” said Bayfront Law Director Ryan Lin.

Lin, who advises high-net-worth Chinese clients on setting up family offices and securing residency in Singapore, said last year that he was helping clients move away from the city-state as stricter compliance and disclosure requirements made the city less attractive.

The changes come as the Chinese government tightens its oversight of wealth held outside mainland China. New rules affecting offshore trusts have spooked wealthy individuals due to disclosure requirements about their structure and potential tax liability, while increased scrutiny has also extended to areas such as insurance and offshore brokerage accounts. These rules apply regardless of where the trust is located or where the individual physically resides.

“When it comes to the security of their wealth, I think they are now thinking very seriously about Singapore for the long term,” he said, adding that they are more determined this time around, with some asking about a path to permanent residence or citizenship as they consider making Singapore their long-term base.

Carman Chan, founder of Click Ventures, a family office based in Hong Kong and Singapore, said moving to Singapore does not automatically release an individual from their obligations to China, especially if their citizenship or tax status does not change.

Advisers said the renewed interest in Singapore is generally aimed at distancing itself physically, economically and politically from the mainland while maintaining additional options.

Mr Lin said recent regulations affecting mainland investors’ access to offshore brokerages in Hong Kong have made some clients particularly anxious. “They probably realize that Hong Kong is actually too close to China,” he says.

Manish Tibulwal, co-founder of family office Faro Capital, said his firm has seen a surge in inquiries from Chinese families looking to move to Singapore.

A spokesperson for the Hong Kong Financial Services and Treasury Department said that under the “one country, two systems” framework, “Hong Kong upholds a common law system, free flow of capital, free convertibility of currency, a simple and low tax system, and a regulatory framework in line with international standards.”

Singapore also benefits from another source of instability: the Middle East.

Several advisers, including Tibulwal and Lin, said Chinese families who moved to Dubai in recent years were reconsidering their plans amid the region’s conflict.

Lin said some of his clients initially saw the conflict as a temporary shock. But as tensions continued, families began to take more concrete steps toward leaving.

“My client is concerned that Dubai may be vulnerable to collateral damage,” Ms. Hayashi said. “Their sense of security will go away. They will become desperate. They won’t feel very safe, at least mentally. The way they think about managing their money in Dubai has changed.”

Some companies have already returned, while others have already canceled investment and financing arrangements.

Tokyo had become attractive to wealthy Chinese in recent years as the weak yen made everything from real estate to luxury goods cheaper. Its proximity to China and its safety made it an obvious alternative to Singapore.

But language barriers, difficulty integrating into Japanese society and business and socio-cultural differences posed problems, advisers said.

Iris Hsu, CEO of Jenga Business Consulting Group, a consulting firm that caters to wealthy families, gave the example of a client who moved to Japan but returned to Singapore just eight months later.

“After going to Japan, going to Dubai, and going to Hong Kong, Singapore remains an option,” Xu said.

The renewed interest also comes as Singapore itself tweaks the rules governing the family office industry.

In July, the Monetary Authority of Singapore eased some conditions for detached offices seeking tax benefits, with the changes effective from August 1. The changes give offices more flexibility on employment and investment requirements, even as authorities continue to tighten checks on the sources of wealth flowing into Singapore.

“High-net-worth individuals from various countries choose Singapore for many reasons, including our high regulatory standards, strong rule of law, and comprehensive ecosystem of asset managers and professional service providers,” a MAS spokesperson told CNBC.

Inquiries from Chinese buyers for luxury real estate in Singapore also rose 35% year-on-year in the first half of the year, according to Juwai IQI.

Wealthy advisers say Singapore’s advantage lies in the increasing predictability that comes with its rules.

“Their priorities have changed,” Xu said. “Before, they might have been looking at opportunities. Now they’re looking at safety.”