On Friday, a private banking industry group in Singapore refuted a media report claiming that the city-state had requested global banks to refrain from disclosing information about wealth inflows from China over the past year due to political sensitivities. The Financial Times had previously reported, citing anonymous sources, that the Monetary Authority of Singapore (MAS) issued a "tacit directive" during a February 20 meeting of the Private Banking Industry Group (PBIG), which is co-chaired by the MAS and UBS.
The report suggested that the MAS aimed to minimize public discussion about the politically sensitive issue of funds from China entering Singapore. However, the PBIG contradicted these claims in a statement, asserting, "MAS has not issued a directive - tacit or otherwise - to banks to keep quiet about the origins of wealth inflows."
According to the PBIG, the February 20 meeting highlighted that public commentary often focused on fund flows from China to Singapore, but the sources of overall inflows into the city-state were, in fact, diversified. The group added, "The increased fund flows into Singapore were from high net-worth individuals from different markets."
Singapore has long been an attractive destination for ultra-wealthy foreigners due to its tax-friendly policies and political stability. The city-state experienced a renewed surge of wealth inflows beginning in 2021 as it became one of the first Asian cities to substantially relax pandemic restrictions. Additionally, many Chinese citizens grew dissatisfied with their country's strict COVID-19 measures.
By the end of 2021, the number of family offices in Singapore, which manage investments, taxation, wealth transfer, and other financial matters for the super-rich, had increased to approximately 700, up from 400 at the end of 2020.
