Rationale for Plans to Ease Tax Framework Requirements for Single Family Offices

Ms He Ting Ru asked the Prime Minister and Minister for Finance (a) what is the rationale for the Monetary Authority of Singapore's recently announced plans to ease requirements on the tax framework for single family offices; (b) whether it has seen an outflow of family offices in the last three quarters; and (c) what is the latest assessment of the industry's impact on our economy and social fabric.

The Monetary Authority of Singapore (MAS) is reviewing the tax schemes for Single Family Offices (SFO)1 to reduce operational friction and ensuring that the schemes continue to generate economic benefits for Singapore. Taking into account industry feedback, MAS is looking to (a) streamline application documentation, (b) simplify reporting obligations, and (c) expand the types of investments eligible under the tax schemes.

MAS has not observed a net outflow of SFOs, but it regularly reviews its schemes so that they remain relevant and competitive. Other jurisdictions, including Hong Kong, have similarly announced reviews of their family office frameworks. When families set up and maintain SFOs in Singapore, they use financial products and services offered by external service providers, such as private banks, fund managers, legal and tax advisors, fund administrators and accounting firms. This generates business revenue and creates jobs.

As SFOs continue to grow in Singapore, there are now more platforms available for them to interact with and support local communities, including through the Wealth Management Institute's Family Office Discovery Series, the Global-Asia Family Office Circle, as well as other philanthropic organisations and networks, such as Philanthropy Asia Alliance and ImpactSG. There are several examples of families giving back to the community here, including: the Ishk Tolaram Foundation which has supported the education and skills training for dyslexic preschoolers since 2021 and autistic talent to pursue engineering careers since 2022; and the James Dyson Foundation which supports engineering and Science, Technology, Engineering and Mathematics (STEM) education in Singapore for students aged six to 25, across primary to tertiary levels.