Singapore must be willing to take calculated risks to remain competitive in the evolving global wealth management landscape, said Chee Hong Tat, minister for national development and deputy chairman of the Monetary Authority of Singapore (MAS), on 9 July 2025.
Speaking during a media doorstop at DBS, Chee underscored the need to balance pro-business agility with stringent regulation to maintain Singapore’s position as a trusted financial hub.
“We take a risk proportionate approach, and not a zero risk approach, because if we are overly kiasu, I think we will not be able to capture new opportunities,” said Chee.
Shorter processing times to support family offices
A key improvement has been the reduction in processing times for tax incentive applications by family offices.
Previously, these applications could take up to 12 months to process. Now, most applications are completed within three months.
Chee explained this as part of broader efforts to ensure Singapore remains attractive to family offices and wealth managers, particularly amid rising competition from other financial centres.
The MAS, in collaboration with industry stakeholders, has sought to streamline procedures without compromising regulatory oversight.
Maintaining high standards and convenience simultaneously
Chee emphasised that high regulatory standards and a convenient, business-friendly environment are “not mutually exclusive”.
“It is a strength that Singapore can offer to differentiate itself from other financial centres,” he said.
While reiterating the importance of trust, the minister acknowledged that a degree of risk tolerance is essential to remain agile and competitive.
Singapore remains a key destination for high net worth individuals (HNWIs) seeking stability and trust in an uncertain global environment, Chee said.
“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,” he noted.
Chee added that Singapore welcomes these different possibilities and intends to work with wealthy individuals and families on long-term planning.
Wealth management sector shows consistent growth
Singapore’s wealth management industry has been on a steady growth trajectory, Chee highlighted.
According to figures from 2023, the five-year compound annual growth rate for private banking client assets was over 8 per cent per year.
Assets under management (AUM) in the wealth sector grew more than 8 per cent in 2023 alone.
The five-year compound annual growth rate for wealth management AUM stands at approximately 10 per cent.
The number of single family offices in Singapore has also risen, from 1,400 at the end of 2023 to 1,650 by August 2024.
Impact of 2023 money laundering scandal and regulatory tightening
Despite strong sectoral growth, Singapore has faced scrutiny following a major money laundering case in 2023 involving over S$3 billion.
On 4 July 2025, MAS announced penalties totalling S$27.5 million against nine financial institutions for anti-money laundering breaches linked to the scandal.
Credit Suisse, UOB, UBS, Citi, and Julius Baer were among those penalised.
Chee addressed questions over why mainly international financial institutions were fined, stating MAS assesses cases based on the severity of offences, not the origin of the institutions.
“It’s not whether it is a local or international financial institution, but it is about the nature, extent and severity of the lapses and offences that have been committed,” said Chee.
He added, “The key is we want to maintain high standards. We want to keep Singapore as a trusted financial centre.”
Chee acknowledged that global competition in the wealth management space has intensified.
However, he stressed that Singapore remains open as a gateway to Asia and continues to offer long-term value to investors.
“We offer a stable, trusted environment,” he said.
He reiterated that maintaining high regulatory standards and offering convenience can go hand in hand, citing MAS’s ongoing efforts to streamline operations and reduce processing times.
“There is enough growth in the global wealth management sector for there to be a few wealth management hubs,” said Chee.
He noted that each hub must play to its own strengths, and Singapore’s advantage lies in being perceived as a safe haven.
According to the Henley Private Wealth Migration Report 2025 released on 24 June, Singapore is projected to attract 1,600 millionaires in 2025, represents a significant decline from the estimated 3,500 HNWIs who migrated to the city-state in 2024.
Despite the downturn, the report noted that Singapore remains one of the world’s top destinations for relocating millionaires, ranking sixth globally.
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