Good move by MAS to mandate family offices to invest more in Singapore

The Society of Remisiers (Singapore) applauds the recent move by the Monetary Authority of Singapore (MAS) to mandate qualifying family offices to invest at least 10 per cent of their AUM - or S$10 million, whichever is lower - in local investments. It includes equities listed in the Singapore Exchange, qualifying debt securities, funds distributed by Singapore-licensed fund managers and private equity investments in unlisted Singapore incorporated companies.

It's only fair for qualifying family offices to invest more of their moneys in the Singapore capital markets as they enjoy an attractive preferential tax rate of 10 per cent instead of the normal corporate tax rate of 17 per cent. The number of family offices in Singapore has doubled to 400 in 2020 as compared with the prior year of 200. The AUM managed by these Singapore-based managers is more than S$4 trillion and a portion of it invested in Singapore would go a long way in establishing a much more vibrant Singapore capital market.

We're hopeful that this good move will boost the liquidity of our capital markets and accord better valuations of companies listed in the Singapore Exchange. It will also act as a catalyst for more good companies to list in the Singapore Exchange which will then attract much more investor participation and consequently add depth and breadth to our markets.