Singapore’s next wealth challenge is succession

Singapore’s growing family-office sector, policy support and deep financial markets have strengthened its position as a wealth management hub for international families.

As competition with Hong Kong intensifies, the focus has shifted to attracting investment firms and capital, though the true challenge will be ensuring the long-term retention of these internationally mobile families once they are established.

Across Asia, substantial amounts of wealth are preparing to move between generations, often within families whose businesses, property and investments span several jurisdictions.

The harder work starts after the wealth arrives

A family may establish an investment structure or family office in Singapore while retaining substantial assets elsewhere. Its operating business may be in Taiwan or mainland China, with property and investments spread across other markets. Family members living in different jurisdictions introduce further legal and tax considerations.

Succession plans can run for decades. A founder may transfer control earlier than expected, a beneficiary may relocate, or regulatory changes may affect existing structures. Advisers must review these arrangements as circumstances change without losing sight of their original purpose.

The next generation may also have different priorities. Some family members may want to run the operating business, while others prefer financial assets or have no intention of joining the company. These differences affect ownership decisions and how families create liquidity without disrupting the business.

What regulatory change means for succession planning

Recent changes to the treatment of offshore wealth structures in China have introduced new tax, reporting and payment considerations for affected offshore trusts. Mainland families and their advisers must review existing arrangements, identify relevant historical transfers and prepare documentation for any required filings.

They must also assess whether trusts, life insurance policies, ownership vehicles and related financing continue to support the family’s objectives. Immediate compliance requirements create an opportunity to reassess the wider structure’s protection, liquidity and succession outcomes.

Singapore’s AAA-rated sovereign status and established regulatory framework offer stability for families reviewing long-term wealth arrangements, particularly those affected by regulatory changes in mainland China.

Competition is shifting beyond headline tax rates

Singapore must also consider how other Asian wealth centres are adapting their own frameworks. Hong Kong has proposed changes to its preferential tax regimes for funds and family-owned investment holding vehicles, including a wider range of qualifying investments and more flexible treatment for certain special-purpose entities. The intention is to make the city more attractive to funds, family offices and investment professionals.

Tax treatment matters, particularly where structures involve several jurisdictions, but families will also be looking at how easy it is to operate from a market and whether the framework can support them as ownership and succession plans evolve.

Regulatory predictability and access to experienced, coordinated advice are therefore part of Singapore’s competitive proposition.

Continuity must become a capability

Singapore has the regulatory framework and professional expertise to support complex family wealth, but its longer-term competitiveness will depend on how effectively that ecosystem manages changes in ownership, regulation and liquidity across generations.

Despite rapid family-office growth, gaps remain in family governance and succession planning. A study by Eton Solutions and Simon-Kucher found that newly established family offices in Singapore tend to prioritise entity formation and tax structuring, while longer-term objectives, such as succession planning, can prove more difficult to achieve. Family governance is also often overlooked. This challenge is reflected in Deloitte’s research, which found that 37% of families with family offices in Asia Pacific lack a succession plan, even as 35% expect to undergo a generational transition within the next decade. Without adequate planning, families risk uncertainty over leadership transitions, ownership division and liquidity. Addressing these gaps requires specialised expertise in cross-border succession, adaptable wealth structures and continuity of advice, capabilities that remain uneven across the region. 

Singapore must deepen its succession and governance expertise, ensure regular reviews of wealth structures and develop liquidity solutions that avoid forced asset sales. Without these capabilities, families may view Singapore as a base for holding wealth rather than managing its transfer across generations. Its lasting competitive advantage will depend on retaining family relationships through succession, not merely attracting capital.

Larry Ikard is CEO of  Yuvarra Limited, a specialist financial services provider focused on life insurance premium financing for high-net-worth individuals and families.