Reply to Parliamentary Question on working with family offices to deepen investments in local companies
QUESTION NO 3321
NOTICE PAPER 1342 OF 2022
FOR ORAL ANSWER
Date: For Parliament Sitting on 05 October 2022
Name and Constituency of Member of Parliament
Mr Desmond Choo, MP, Tampines GRC
To ask the Prime Minister whether and, if so, how has the Ministry been working with family offices in Singapore to deepen investments in local companies.
Answer by Mr Alvin Tan, Minister of State, Ministry of Trade and Industry and Ministry of Culture, Community and Youth, and Board member of MAS, on behalf of Mr Tharman Shanmugaratnam, Senior Minister and Minister in charge of MAS:
1. Our government agencies are working on encouraging family offices to make investments in local companies in a number of ways.
a) First, single family offices (SFOs) applying for tax incentive schemesThese are commonly known as Section 13O and 13U schemes under the Income Tax Act. have been required since April this year to allocate at least 10% or S$10million of their assets (whichever is lower) to local investments. Local investments may include equities listed on Singapore exchanges, private equity investments in unlisted Singapore-incorporated companies or qualifying debt securities.
b) Second, MAS and Enterprise Singapore have set up a number of platforms to connect local companies to potential investors, including family offices. These include “Deal Fridays”, FinTech Investor sessions, and the Singapore Week of Innovation and Technology. Matchups are also encouraged during the annual Singapore FinTech Festival.
c) Third, MAS and EDB have supported the Wealth Management Institute’s Global-Asia Family Office Circle, which aims to encourage family offices here to make co-investments in companies as well as develop strategies in areas such as philanthropy and sustainable investments.
2. At the same time, we must recognise that family offices come to Singapore to access investment and philanthropic opportunities in the broader Asian region. This adds to Singapore’s status as a dynamic as well as purposeful financial centre, supporting growth and opportunity in our neighbouring countries.