Record growth of single family offices may be over but new entrants likely to be wealthier

SINGAPORE may see a slowdown in the growth of the number of family offices ahead as the Republic shifts towards attracting wealthier families.

The number of single family offices (SFOs) in Singapore exceeded 2,000 in 2024, a 42.9 per cent jump from the 1,400 recorded in 2023. The growth last year was also almost double of the 1,100 added in 2022.

Yet observers believe that this growth could slow in the coming years, given Singapore’s move to tighten regulations in the sector. Some even think the overall number could eventually shrink.

“We tend to think that there is likely to be a decline in the number of SFOs in Singapore, more so due to the tweaks and entry to barriers to setting up an SFO in Singapore,” said Sim Bock Eng, head of WongPartnership’s specialist and private client disputes practice.

There is also rising competition from other established and aspiring financial hubs in the region, which are dishing out incentives to court the ultra-rich.