Published Date: 29 September 2022
Speech by Mr Lawrence Wong, Deputy Prime
Minister and Minister for Finance, and Deputy
Chairman of the Monetary Authority of
Singapore, at The Owner's Symposium of The
Global-Asia Family Office Summit on 29
September 2022
Chairman and CEO of the Wealth Management Institute, Mr Lim Chow Kiat, Ms Foo Mee Har
Distinguished Guests,
Ladies and Gentlemen,
1. I am very happy to join you this morning for the Owner's Symposium, as well as the
inaugural Global-Asia Family Office Summit. It is a great time to be in Singapore and I
welcome all our overseas guests. It is a good time from a Covid-19 situation point of view, as
we are in a far better place today than we were when the pandemic started. And also
because we have a whole series of events lined up this week in the run up to the F1. I hope
some of you will stay on for the race. We welcome all of you here. Our hotels are full, and
throughout these few days there are so many events where you see people coming together,
intermingling, wanting to connect with one another. It shows how strong the desire is for
human connections aer two and a half years of isolation.
2. This summit reflects the growing presence of family offices in Singapore, and around the
world.
a. The concept of family offices of course is not new - it dates as far back as the 19th
century, if not earlier.
b. But the number of family offices around the world have increased substantially in
the last 20 years.
c. It reflects the growth in global wealth in recent decades, as well as a desire by
families to professionalise how their wealth is managed.
3. Singapore has been a beneficiary of these global trends. We have seen an increase in
family offices in Singapore in recent years. Today, we have almost 700 family offices here, up
from fewer than 100 just five years ago. This is a very sharp increase.
a. One factor behind this is that Asia's growth story remains intact despite the
uncertainty and volatility that we see around the world. And within Asia, Southeast
Asia is continuing to grow. It will be a key spot in Asia.
i. Southeast Asia is projected to be the 4th largest economy in the world by 2030.
We have within our region, a relatively young population and a fast-growing
middle class, which will create an increasingly vibrant consumer market and
provide many investment opportunities.
b. Of course, another factor behind the growth in family offices here is that we have
been working very hard to ensure that Singapore remains a stable, reliable and trusted
hub in Asia. Even in the midst of rising geopolitical tensions around the world, we want
Singapore to always be a bastion for stability, innovation and opportunity.
i. And so we have been working very hard to strengthen our value proposition and
our status to be a hub for trade investments, finance and talents.
ii. And as a wealth management centre, we offer a strong pool of talent across a
whole range of professional services, including wealth and asset management,
legal and tax advisory, trust services, philanthropy and governance to name a
few.
4. We welcome the growing number of family offices, all of you, to Singapore. Because you
add to the vibrancy of our financial services landscape, and create value for our own
economy by generating spin-offs. For example, the investments made by family offices
include local enterprises, investments in local enterprises, start-ups and, increasingly, ESG
projects, which can positively impact the local community. You will also help to enrich the
expertise of our companies and professionals in the finance and legal sectors.
5. And that is why we are working to strengthen the family office ecosystem in Singapore,
as Chow Kiat mentioned just now.
a. We want to improve and grow the pool of capable family office executives,
management and advisors here.
i. The Wealth Management Institute (WMI) has been doing its part by working to
strengthen our talent pool in this area through education, practical research, and
capability building programmes.
ii. And I am glad that more than 1,200 people have participated in WMI's family
office-related programmes since 2020.
b. And of course, we are also building up a strong community of family offices, through
the establishment of the Global-Asia Family Office Circle, so that we can share best
practices and priorities and learn from one another.
6. As family offices grow in size and scope in Singapore, the sector will inevitably play a
bigger role in the future of Asia's growth. As this happens, I hope all of you here today will
take the opportunity to look at Asia not just from an investment point of view, not just from a
returns point of view, but also from the perspective of how we can make a positive impact
on society.
7. Indeed, because of your unique strengths, family offices have a huge capacity to do
good.
a. With the goal of managing wealth across generations, you also have the ability to
take the long-term view.
b. And have the flexibility and agility to allocate resources to important causes that
resonate with you.
8. So I am glad that increasingly, we are seeing more and more family offices leveraging
these strengths to establish a legacy that extends beyond financial growth and wealth
accumulation.
a. For example, many are looking for opportunities which align with their values.
b. And it is more and more common to hear family offices say that investing based on
ESG principles is not just about doing good; It also makes good business sense.
c. By adopting more sustainable and resilient business models, these family offices are
making sure that their legacies can stand the test of time.
9. On Singapore's part, we aim for growth that is inclusive and sustainable - growth that
benefits everyone in our society, and that is consistent with our longer-term net-zero plans.
So we see substantial opportunities for family offices here to play a key role in three key
areas of impact: first, innovation; second, sustainable finance and third, philanthropy. Let
me elaborate on each of these areas.
10. First, there are many opportunities for family offices to support innovative companies in
Singapore and the region.
a. The innovation eco-system in Singapore has been growing more vibrant over the
years. We are now home to one of the fastest growing start-up communities in the
world, including game-changing solutions in areas like agri-tech, fintech and biotech.
Not quite yet at Silicon Valley level, but we hope to get there some day.
b. And within Singapore itself, you have access to many exciting opportunities around
us, which is why we are home to the world's highest concentration of Asian
ASEANfocused private equity and venture capital firms. Here you have an ecosystem where
PEs and VCs are very much focused on the region and you can tap on that extensive
network.
c. In other words, there are no lack of resources to help bring innovative ideas to
market, and many opportunities for family offices to invest alongside capable and
sophisticated partners.
d. One example is Next Gen Foods, which is an alternative protein start-up founded in
2020. It raised $100 million in series A funding, the largest amount by any plant-based
protein company anywhere in the world, and the investors include a Singapore-based
family office.
e. But beyond just investing in innovative companies, family offices can also help
mentor promising entrepreneurs and nurture the next generation of business leaders.
More than anything else, this has the potential to have a lasting impact.
11. Second, Singapore is a good launch pad for family offices to support the global net-zero
agenda, especially in the areas of sustainable and transition finance.
a. We all know that Asia is the key battleground for the fight against climate change.
b. And there is a huge funding gap for many climate transition projects in the region.
There is potential for these projects to be done, but there is a financing gap because
the projects are not fully bankable. However, these projects are crucial in order to help
countries in the region meet their climate goals, and they present huge investment
opportunities.
c. There is substantial scope for family offices to play a positive role. In particular, we
see opportunities for family offices to help scale up blended finance structures to
finance climate transition projects in the region which are marginally bankable. That
means we could create a blended finance platform with concessionary capital. Some of
you might be prepared to contribute concessionary capital in such a structure, you can
crowd-in private sector capital, and this will enable these projects to be funded. And
this will also enable family offices to maximise your impact.
d. Moreover, as the regional base for many global financial institutions and multilateral
banks, we are well placed in Singapore to help family offices pivot to sustainable
investing. We can facilitate access to a growing suite of green investment products,
green research and climate-related technology solutions. Indeed, Singapore already
constitutes close to 50% of cumulative ASEAN green bond and loan issuances today,
and we intend to do more in this area.
e. Again, I am happy that a number of family offices have already seized the
opportunity to support sustainability initiatives.
i. Take Gunung Capital as one example. It is a Single Family Office based here, and
it aims to drive meaningful change through its investments. It has committed
$500m to ESG assets, with a focus on clean energy infrastructure, industrial
transition and carbon mitigation.
ii. As part of this effort, it helped its portfolio company modernise its steel
manufacturing business, making use of energy and operationally efficient
equipment to cut down consumption while increasing output. And it has come up
with a roadmap for producing low-carbon steel by sourcing greener raw materials
and transitioning to renewable energy. So that is the impact that family offices
like you can make in accelerating the green transition around the region.
f. I certainly hope to see more family offices take advantage of the substantial
opportunities in this space.
12. Finally, apart from innovation and sustainability, family offices can also contribute
substantially to society via philanthropy. You could consider deploying a portion of your
wealth - how much is up to you - to a larger cause, to a larger purpose that you feel
committed to, and endow charitable foundations which will continue to do good beyond
your lifetimes. This can form an important part of your family office's legacy, and position it
as a force for good in society.
a. We have seen many examples of this throughout history. And we saw this again
during the Covid-19 pandemic, when many came together to support those who were
badly hit by the crisis. In Singapore, for example, we had a philanthropy organisation
founded by Mr Danny Yong and the Yong Hon Kong Foundation, which launched the
Singapore Strong Fund in early-2020. They provided local community groups with
resources to get their projects off the ground. With support from other families and
foundations like Woh Hup and Tsao Foundation, the fund managed to reach over
300,000 beneficiaries.
13. Given the increased interest in philanthropy, the government will do more to help
private capital and family offices maximise their philanthropic impact and do good. We aim
for Singapore not just to be an economic and financial centre - but also a centre for
philanthropy in Asia.
14. I know many family offices here have already set up a philanthropic arm or foundation;
and we encourage all of you to do so.
a. We will help you in your philanthropic giving - by identifying suitable causes and
charities in the region; developing objective due diligence and impact monitoring
solutions together with industry partners, so that you have the assurance that your
giving will have positive impact.
b. We will also help family offices collaborate on larger-scale philanthropic investments
with like-minded donors and intermediaries. This will enable family offices to increase
the impact of every dollar given, and benefit from specialised capabilities across our
philanthropic ecosystem.
c. To facilitate this collaboration, the WMI, MAS and the Private Banking Industry Group
are working to establish the 'Impact Philanthropy Partnership', which will bring
together family principals and offices to collectively tackle society's most pressing
challenges and issues.
d. The Government will also provide more support to family offices that choose to build
their philanthropic base in Singapore, so that they can achieve greater impact here and
overseas. In particular, we are reviewing our tax incentive schemes to see how we can
encourage family offices to do more philanthropic giving, and to support the local
philanthropy ecosystem by structuring their giving through local charities and
nonprofit entities.
e. These are all multiyear plans, but our basic message is this: if you are a family office
interested to give back to the local community in Asia, there is no better place to do it
than here in Singapore.
15. To conclude, as an established financial hub, Singapore will continue to grow
opportunities for wealth management, and support the evolving needs of family offices. But
we also believe that the best legacy that those with greater means can leave behind is a
positive impact on society.
a. This commitment to inclusive growth is how we have built a stable, cohesive and
prosperous society for all, here in Singapore.
b. And it is why we will hope to build stronger partnerships with all of you as long-term
partners in Singapore, not just as investors, but as partners in nation building, partners
in shaping a better region. That is why we will strive to offer family offices opportunities
to do this - through nurturing innovation, facilitating the climate transition and
through philanthropy.
16. I thank the WMI and Global-Asia Family Office Circle for all your efforts and contributions,
including putting this inaugural event together. Because as Chow Kiat said just now, we are
truly stronger together, and together we can make Singapore a choice location for all of you
to not only do well, but also do good. Thank you very much.