The Monetary Authority of Singapore introduced tighter rules for single-family offices applying for tax incentives, raising minimum asset thresholds and adding requirements for local hiring and business spending. The changes take effect from May 1 and apply to new applicants under sections 13O and 13U of the Income Tax Act.
Under the revised framework, applicants must hold at least S$50 million in assets at the point of application, doubling the previous benchmark. They must also employ at least three investment professionals, one of whom must be a non-family member, and incur S$500,000 to S$1 million in annual local business spending depending on the scheme.
Cooling the inflow
According to MAS data, the number of single-family offices in Singapore reached approximately 2,000 by end-2025, up from around 400 four years earlier. The growth has been driven mainly by wealth migrating from China, Hong Kong and Indonesia. The pace of approvals slowed in the second half of 2025 after a high-profile money laundering case implicating S$3 billion of assets prompted regulatory review.
MAS managing director Chia Der Jiun said in a statement that the changes were designed to ensure family offices contribute meaningfully to the local economy and to maintain the quality of inflows. He said the framework should not be read as a deterrent to legitimate wealth.
Industry response
Private banks operating in Singapore, including DBS Private Bank, UBS and Bank of Singapore, said they expect the new rules to slow application volumes in the near term but improve long-term predictability. Several firms are advising clients to bring forward applications under the existing regime where possible.
According to a survey by KPMG Singapore conducted in March, roughly 35% of family-office principals based in Singapore are considering opening secondary structures in Hong Kong, Dubai or Geneva to diversify regulatory exposure. The figure was 22% in a comparable survey a year earlier.
Hiring and spending impact
The new local-hiring requirement is expected to add demand for portfolio managers, compliance officers and tax specialists in Singapore's financial centre. Recruitment firm Robert Walters said wealth-management mandates already account for roughly a quarter of senior finance placements in the city-state.
The annual local-spending threshold is intended to encourage use of Singapore-based service providers in legal, accounting, fund administration and custody. Government estimates suggest the rule could generate S$400 million to S$600 million of additional fee income for the local financial-services sector annually once fully phased in.
Asset class considerations
The framework also adjusts qualifying-investment definitions, restricting how much can be allocated to private cryptocurrency holdings and unlisted instruments without enhanced disclosure. Listed equities, regulated funds and Singapore government bonds remain fully eligible.
The Straits Times Index closed 0.4% higher on the day of the announcement. The Singapore dollar strengthened modestly against the US dollar, trading at 1.342 in late Asia hours.
MAS said the framework will be reviewed again in 2028, with possible further adjustments depending on industry feedback and regulatory outcomes from peer jurisdictions.