Singapore’s reputation as a safe port for rich continental Chinese families is fading, reversing an entry that occurred at the expense of rival wealth centers such as Hong Kong and Japan. His charm for China’s rich arose after 2019, when a wave of prodemocratic protests in Hong Kong led to a repression of Beijing and the introduction of a National Security Law the following year. These events pushed continental Chinese families in Hong Kong to look for a distance from Beijing’s grip. The political stability, a favorable regime of the family office, the independent courts and the fluidity of Mandarin made Singapore a natural attraction for the super rich of China. Following a money laundering scandal of 3 billion dollars ($ 2.3 billion) in 2023, called “Fujian case”, where the culprits of Singapore’s regulators and banks embarked on an aggressive cleaning, tight rules and restart of rich customers. “When Fujian’s news were released, many of these rich Chinese left. So literally, almost all … They go to Hong Kong, the Middle East, Japan,” said Ryan Lin, director of Bayfront Law in Singapore. That game has accelerated since then. Multiple layers of Lin checks, who veterinated and process applications of rich Chinese people seeking to establish family offices or reside in Singapore, presented 50% less applications of continental clients now compared to 2022, especially as compliance verifications and new regulations enter into force. From your point of view, [wealthy mainland clients] They are thinking: Do I really need to declare my illegitimate son just because I want to administer wealth in Singapore? The director of Bayfront Ryan Lin’s law, the monetary authority of the impulse of Singapore (more) to strengthen compliance, particularly around cryptography, has a colder interest, especially for those who found wealth in this specific space. In 2025, Singapore introduced the regulations that required platforms that operate in Singapore that offer products such as cryptocurrencies, stables or tokenized actions, to customers outside the city-states, to obtain license. The Central Bank of Singapore said the approvals would be rare, while imposing high compliance costs, including a minimum capital requirement of SG $ 250,000 along with strict rules for money laundering, technological risk and behavior. Cryptographic companies that offer services to customers within Singapore are already regulated according to existing laws. “Then, for this year, those in the cryptographic space particularly, all have left due to this particular legislation by the MAS,” Lin said. “It is already very difficult to request a license in Singapore, and then you go out with another legislation even to services to people outside Singapore. So everyone left.” “I’m still thinking [the exodus] It is very driven by regulations. So, as the regulations become stricter, these Chinese simply say: forget it. My patience has gone, “he added. In response to the CNBC consultation, Singapur’s more said that the money laundering case has not changed its position on regulatory standards.” Singapore welcomes legitimate wealth. But he is working with Financial Institutions in Singapore to improve our practices to be solid, effective and efficient, “said one more spokesman. The consequences of the Singapore money laundering scandal and high -profile crypto failures such as Tres Arrows Capital and FTX triggered an impulse of compliance with aggressions in 2024, according to Iris XU, founder of Singere Services Services. Financials undertook “cleaning”, remarking their client’s knowledge checks (KYC), re -select the requests of the family office and, in some cases, close accounts completely. ” And family offices must undergo extensive background verifications, including dissemination about their family and dependents, the requirements they see as invasive, said Lin. Partners, an advisory firm that helps rich customers to obtain residence through investments, Singapore will see a strong deceleration in wealth migration in 2025, with a net entry projected from 1,600 millionaires, less than half of the 3,500 expected in 2024. Carman Chan, founder of Click Ventures, a single -family office, said in a similar way that many family They establish business in Singapore, they are moving to Hong Kong. Have taxable income in the country. KYC took more than a year, which led some investors to change operations elsewhere. Four or five in the morning with friends. For residence through investment after renewing their capital investment participant scheme earlier this year. They forgot why they arrived in Singapore first of all, “said Lin de Bayfront Law. Beyond the regulations, the softest factors such as lifestyle differences play a role, especially for the youngest rich.” When they lived in Hong Kong before, they could party at four or five in the morning with friends. And they like that lifestyle, “said Christopher Aw, a partner of Pandan Investments who also pointed out that several Chinese companions rich in Singapore have moved to Dubai or Hong Kong. Dominic Volley, group lead Hardening compliance regimes and social changes can contribute to their desire for greater privacy and flexibility in other places, “said Singapore has been a” booming “center, but now” it is cooling, cleaning, “Xu de Jenga said.” The last years have definitely been a good time for Singapore, and having some corrections now is normal, “he added.
