- A city with security, stability and sound infrastructure.
- Ease of doing business and transparent tax structure.
- A hub for financial services.
Singapore is an attractive destination for international tourists and finance professionals alike – be it for a well-deserved (and often opulent) break from backpacking in other cities in Asia or for the strong dollar and equally high pay packets that come with expatriate positions. Granted. What has become evident over the last several years, however, is that our little red dot has slowly attracted a new breed of migrants, the uber wealthy looking to set Singapore as their base. We take a look at some of the reasons behind this phenomenon, despite us being the most expensive city for expats for the 4th year running, detailing some of the well known as well as other obscure benefits of settling in this sunny island many of us call home:
Security, Stability and Infrastructure
These factors have been spoken about consistently both locally as well as on an international level but are worth mentioning here again. The fact that Singapore maintains its status as an orderly and structured city pays a lot towards its appeal. Having one of the lowest crime rates in the world is a big plus point when it comes to consideration for migration.
Infrastructure is another huge advantage that the city has to offer. Wealthy migrants enjoy a sound education system (for their kids) in premier international schools together with world-class transportation as well as some of the most diverse food and shopping facilities that any city has to offer. It is safe to say that Singapore’s structure leaves little reason for any expatriate to purchase a car – with the introduction of Grab and Uber further adding to the convenient ease of getting around.
Ease of Doing Business and Transparent Tax Structure
This topic was recently addressed with all the buzz around Taizo Sun – one of Asia’s most prolific Technopreneurs – announcing his move to Singapore. After Eduardo Saverin’s (co-founder of Facebook) move here in 2009, this was probably the next big story in wealthy migration to the island. One of the reasons for his decision to move was that fact that our government’s embracing of innovation and technology has established a “conducive and well-supported startup ecosystem through government grants, fund-matching schemes, corporate tax subsidies, and tech-centred visa programs to attract top global tech talent”.
Apart from Singapore being a handy confluence between East and West (culture wise as well as the fact that English is the common language), these UHNWIs also move here due to the city’s status as a tax heaven. Eduardo (who took up Singapore citizenship), for example, would have been taxed 40% in the US compared to the 20% here, with the added advantage of not paying capital gains tax on his investment. On top of all this is the fact that the city is a former British colony with its its legal and financial structures bearing close resemblance to that of the US as well as the UK.
Access to Financial services
Let’s face it. Money does make money and when it comes to financial management – at least throughout the region – Singapore does stand above the competition. Take for example 2015, according to the Global Family Office Report by Campden Wealth Research and Swiss private bank UBS, Singapore outperformed the region in terms of returns on investment in the Family Office sphere. In the previous year, the city surpassed the global overall average. Figures for 2016 have not been released as of yet. The wealthy very often enjoy good financial guidance to both manage and multiply their wealth as well as take care of their wealth preservation needs. Singapore has certainly solidified its status as a financial hub with a great emphasis placed on superlative service levels.
And there we have it, a few extremely good reasons why the affluent would want to relocate to Singapore. Couple these factors with the high standard of living that the city has to offer and what they have is a bundle of good value propositions for migrating.
Also, find out why more South Korean millionaires are looking to relocate to Singapore.