Singapore Loses Allure as Haven for Chinese Wealth
Jakarta, CNBC Indonesia – Singapore’s reputation as a safe destination for rich families from China is beginning to fade, reversing the inflow of wealth that previously benefited the city-state at the expense of rival financial centers like Hong Kong and Japan.
Singapore’s appeal to wealthy Chinese citizens surged after 2019,when Hong Kong was disrupted by pro-democracy protests.This unrest was compounded by Beijing’s tightening grip through the implementation of the National Security Law the following year, prompting many Chinese families to seek distance from central political influence.
Political stability, an independent legal system, supportive family office regimes, and the widespread use of Mandarin made singapore notably attractive to the super-rich. Though, the SG $3 billion money laundering case in 2023, known as the “Fujian case,” prompted authorities to tighten regulations and reassess wealthy clients.
“When the Fujian case sticks out, many rich people from China leave. Almost all of them moved to Hong Kong, the Middle East, and Japan,” said Ryan Lin, Director of Bayfront Law in Singapore.
Lin noted that submissions of Family office applications from Chinese clients have dropped 50% compared to 2022, due to increased scrutiny and stricter new regulations.
singapore’s Monetary authority (MAS) has also tightened rules concerning crypto assets. Starting in 2025, any platform offering crypto products to tokenized equities abroad must be licensed, with a minimum capital of SG $250,000 and robust AML compliance and technology risk management.
“The new rule makes the crypto perpetrators leave. Almost all of our clients in this sector have left their feet,” Lin said.
MAS maintains that the money laundering scandal did not alter their regulatory standards. “Singapore welcomes legitimate wealth, and we are working with financial institutions to ensure healthy, effective and efficient practices,” stated a MAS spokesperson.
According to Iris Xu, the founder of Jenga, a corporate service institution for Chinese clients, t