Singapore has become a haven for the ultra-wealthy, providing a secure and dynamic environment for growing and managing fortunes. By the end of 2023, the number of single-family offices (SFOs) in Singapore awarded tax incentives soared to 1,400, marking a 27 per cent increase from the previous year.

Family offices in Asia are expected to double their assets by 2025, and with Singapore housing 59 per cent of these offices, the city-state is at the forefront of this expansion. This presents both opportunities and challenges for family offices navigating a landscape shaped by stringent regulations and evolving policies.

Why family offices choose Singapore

Regulatory environment and political stability

Singapore offers a stable socio-political environment, a free market economy, and a transparent regulatory framework. The Monetary Authority of Singapore (MAS) and the Singapore Economic Development Board (EDB) have formed the Family Office Development Team (FODT) to strengthen the country’s standing as a hub for family offices. This stability and support make Singapore a prime location for managing regional assets and international operations.

Targeted support and tax incentives

The nation provides robust support to family offices through incentives such as the Offshore Fund Exemption Scheme (Section 13D), the Onshore Fund Incentive Scheme (Section 13O), and the Enhanced Tier Tax Incentive Scheme (Section 13U). These incentives allow for the exemption of most investment profits from income tax, enhancing the ability to retain and reinvest earnings.

Strong trade and tax networks

Singapore’s comprehensive network of free trade agreements (FTAs) and double taxation avoidance (DTA) agreements greatly benefit businesses. These agreements facilitate access to preferential markets, reduce import tariffs, and strengthen intellectual property regulations, ensuring efficient operations and strategic advantages due to Singapore’s location within Southeast Asia.

Adapting to changing policies

Recent policy changes by MAS have prompted family offices to invest more purposefully in local enterprises, sustainable development projects, and philanthropy. This alignment with global trends towards impact investing and sustainable finance is reshaping investment strategies, promoting both financial returns and positive social outcomes.

Additionally, the increased scrutiny in approvals for family offices due to concerns over money laundering has added complexity to establishing new family offices.

Tiger Fund Management offers Discretionary Product Management, catering to bespoke investment solutions for high-net-worth accredited investors. One differentiating factor of the strategy is the use of option writing that provides income enhancement for the investment we provide for our clients. The investment strategy is based on macroeconomic and fundamental analysis while leveraging the capabilities of its proprietary artificial intelligence model.

Also Read: Navigating wealth management: The emergence of new family offices in Singapore

One case study is that of Tiger Income Absolute DPM, which focuses on option-writing on Treasury Bond ETFs, which enhances investors’ portfolios of conservative US treasuries and money market equivalent assets.

Tiger Fund Management also launched the Tiger-Yuanta USD Liquidity Fund on 7 Feb 2024, which offers investors exposure to high quality short-term money market instruments which are designed to optimise liquidity, manage risk and achieve returns comparable to USD short-term deposits. The fund’s gross annualised return since inception has been consistent at around 5.4 per cent.

Wealth management with confidence

As family offices navigate these changes, partnering with wealth management services becomes crucial. These firms offer essential expertise and resources:

• Expert guidance: Tailored advice that aligns with the unique goals and risk tolerance of family offices, aiding in informed investment decisions amidst evolving regulations and market conditions.
• Diversified investment strategies: Using comprehensive data to identify key investment trends and opportunities, prioritising diversification and long-term growth to help family offices navigate market volatility.
• Advanced financial tools: Sophisticated tools and platforms offer deep insights into market trends and financial strategies, helping family offices optimise their portfolios and enhance financial efficiency.
• Regulatory compliance: Staying informed about regulatory updates and tax incentive changes is critical. Wealth management firms ensure that family offices remain compliant with local regulations, optimising tax efficiency and reducing potential risks.
• Global market access: Access to a broad array of global markets allows family offices to seize opportunities worldwide, ensuring a diversified and robust investment portfolio.

Stepping into the spotlight

As Singapore continues to emerge as Asia’s premier hub for family offices, understanding the factors driving this rise and the strategies for navigating this landscape is crucial.

By partnering with experienced wealth management professionals, family offices can effectively respond to challenges and capitalise on opportunities, ensuring their long-term success in this dynamic environment.

This proactive approach will not only enhance the growth of individual family offices but also contribute to the continued rise of Singapore as a global wealth management hub.

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Simon Ho

Indonesian tech giant GoTo Group has announced the appointment of Simon Ho as the new CFO, effective August 30.

He is replacing current CFO Jacky Lo.

Ho will be based in Indonesia, reporting to GoTo Group CEO Patrick Walujo and overseeing all finance and investor-related group functions.

Also Read: GoTo completes merger with TikTok Shop Indonesia

Ho will subsequently join GoTo’s Board of Directors, subject to shareholder approval at the next Extraordinary General Meeting of Shareholders (EGMS), which is scheduled for August 30.

A seasoned financial executive with over 25 years of experience encompassing financial management, corporate strategy, capital markets, and investor relations, Ho began his career in management consulting before moving into the financial sector. He has previously held senior roles at international banks, including Citigroup and ABN AMRO.

In the past, he also served as CFO at NYSE-listed fintech platform FinVolution Group in China and Filipino payment firm Maya.

Walujo, President Director at GoTo, said, “Simon’s broad experience and deep knowledge of financial markets will add significant value to our business as we drive GoTo towards sustainable growth. He will become a key member of our leadership team and will help ensure the company returns long-term value to our shareholders.”

GoTo is one of the largest digital ecosystems in Indonesia, offering technology infrastructure and solutions. The group provides a wide range of services, including mobility, food delivery, groceries and logistics, as well as payments, financial services, and technology solutions for merchants. In addition, it provides e-commerce services through Tokopedia and banking services through its partnership with Bank Jago.

Also Read: GoTo scores US$150M to boost financial inclusion, sustainability across Indonesia

In 2023, GoTo announced a partnership with TikTok following the Chinese company’s acquisition of the group’s e-commerce unit, Tokopedia, for US$840 million. The group claims it is close to achieving profitability and has increased revenues and improved cost efficiency. The firm aims to accelerate growth by reinvesting profit back into the business while planning to achieve adjusted EBITDA breakeven for the full year 2024.

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Image Credit: GoTo Group.

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Nick Boden, co-founder and CEO of Klean

Ficus Capital, an Islamic Environment, Social, and Governance (ESG-i) VC firm (ESG-i), has invested RM2 million (~US$430,000) in Klean, a greentech sustainable recycling business owned by Malaysia-based Janz Technologies.

This investment, made through the Ficus SEA Fund, will support KLEAN’s initiatives in container recovery, expand its network of Reverse Vending Machines (RVMs), and enhance its regional operations in Malaysia, Indonesia, Singapore, and Fiji.

Also Read: Growing and transforming global greentechs for sustainability

Klean operates a sophisticated digital container deposit system using artificial intelligence-powered reverse vending technology. This system encourages individuals to recycle empty plastic containers. Users can earn points, which can be redeemed for rewards.

Equipped with cutting-edge AI technology, Klean’s Smart RVMs include a machine learning-enabled chute that recognises brands of deposited containers. This facilitates retailer container recovery data and activates targeted advertisements.

Additionally, the machines automatically identify the type of material and sort it into separate bins, optimising recycling operations. Currently, there are 100 RVM units across Malaysia, Indonesia, Singapore, and Fiji.

Its mobile app allows recyclers to scan QR codes, collect Klean points, and redeem rewards. The app captures core user data for precise targeted marketing.

Furthermore, Klean’s data and reporting capabilities provide real-time RVM data and ESG reporting tracking through the Klean dashboard, offering businesses comprehensive metrics for CSR reporting and data monetisation channels.

“As awareness of social and environmental issues continues to grow globally, so does the demand for sustainable investment options that align with ethical and religious values. The ESG-i sector stands at the intersection of these trends, offering investors the opportunity to make impactful and socially responsible investments while adhering to Islamic finance principles,” Ficus Capital Managing Partner Abdullah Hidayat Mohamad said.

Green recycling technology has the potential to revolutionise various industries, including renewable energy, sustainable transportation, waste management, and energy efficiency, thereby fostering a cleaner, greener future for all.

According to Fortune Business Insights, the global greentech and sustainability market is projected to grow from US$19.83 billion in 2024 to US$83.59 billion by 2032 at a compounded annual growth rate (CAGR) of 19.7 per cent. Significant growth is anticipated, particularly in developing economies and emerging markets.

Also Read: Greentech revolution: Catalysing software’s success to drive a sustainable future

Ficus SEA Fund was launched in November 2021 with a focus on accelerating the growth of high-potential technology startups ups across ASEAN in sectors such as logistics, fintech, healthtech, e-commerce, edutech, greentech, big data analysis, and cloud services. The fund aims to support sustainable and dynamic startups that positively impact the environment and society. It focuses on three primary concepts: shariah principles, sustainable growth, and ESG.

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The BuildHub PH team at the PhilCon Visayas 2024, Cebu City, the Philippines

In June, BuildHub PH, an online marketplace serving as a centralised system for the construction industry, has recently participated in the 2024 Philippine Construction (PhilCon) Visayas Expo in Cebu City, the Philippines.

At the event, the company showcased its new platform, BuildHub.ph, and introduced its financing service, BuildCredit. This was part of the BuildMart PH Technologies subsidiary’s effort to expand to new cities in the country.

As one of the hottest markets in Southeast Asia (SEA), the Philippines continues to gain the attention of investors even during the funding winter. The country offers many lessons in resilience for entrepreneurs in the region. We are curious about how startups in the country are growing and expanding their businesses and would like to learn as much as possible from them.

To understand more about how one startup plans its national expansion in the country, e27 reached out to Marika Laciste, the Chief Business Officer of BuildHub. In this email interview, Laciste shares the criteria the company is looking for when planning for a new region to expand to and how it deals with unique challenges.

Also Read: Echelon Philippines opens growth opportunities in the Philippines and beyond

The following is an edited excerpt of the conversation.

What are the primary goals and objectives of BuildHub’s national expansion strategy in the Philippines?

BuildHub’s vision is to be the leading business innovation group, helping to build the future of 100 million people in the Philippines. To achieve this vision, we believe that we need to deeply understand the unique requirements of the construction industry in the Philippines. Expanding nationwide will enable us to adjust our products according to market needs and align our business operations to serve them better.

How does BuildHub plan to identify and enter new markets within the Philippines, and what criteria are used to select these locations?

Criteria are focused on three things right now:
1. Market size
2. Private and Public developments in the area
3. Available resources

What challenges has BuildHub faced during its expansion, and how is the company addressing them to ensure smooth growth?

The construction industry is a US$60 billion market in the Philippines. Players can unlock many opportunities but it requires significant capital.

The company has earlier projected the required resources for expansion, but, of course, execution speed will always be a challenge as we also want to balance growth with expenses and ultimately reach profitability.

Also Read: Bridging communications: How Mylo Speech enhances speech therapy accessibility for autistic children in the Philippines

What we do now is find creative ways to execute our plans without burning too much capital for speed. This includes collaborating with other brands and companies who believe in the vision and mission of BuildHub.

Can you share some success stories or key milestones BuildHub has achieved in its expansion efforts?

Since launch, we are happy to have achieved YTD Achievement of 65 per cent GMV targets this year, 2x in average monthly buyers as compared to 2023, and promising partnerships with construction and finance companies.

What role do technology and innovation play in BuildHub’s strategy to scale its operations across the Philippines?

BuildHub aims to be the leading tech-enabled construction company in the Philippines and eventually expand to Southeast Asia. It uses various technologies to support efficient transactions across the value chain.

One is the agent-led ordering dashboard, which helps introduce online ordering to both buyers and sellers, and the other is the buildcredit, which buyers can apply and use within the website. Then, there are other internal innovations that help the company to build faster and more efficiently to serve our target markets across the Philippines.

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Image Credit: BuildHub

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Partior CEO Humphrey Valenbreder

With the global cross-border payment market experiencing explosive growth, moving money across multiple currencies is getting increasingly complex and costly. Financial institutions and their end customers also face operational inefficiencies stemming from legacy market infrastructure, such as settlement risk at each transaction phase and uncertainties related to settlement confirmation and liquidity accessibility.

A Singaporean startup addresses these problems with blockchain technology.

And it has just raised a large sum of investment from prominent global investors.

Also Read: AI will have more impact on our future than blockchain: Dusan Stojanovic

“Traditional cross-border payments are fraught with delays, high costs, lack of transparency, multiple intermediaries, and varying compliance standards,” Humphrey Valenbreder, Partior CEO, told e27. “At Partior, we address these issues with our 24×7 global clearing and settlement solution, which facilitates real-time domestic and cross-border payments across banks, ensuring programmable value transfers with real-time settlement finality. This approach delivers instant liquidity and transparency, effectively overcoming the inefficiencies inherent in legacy payment systems.”

“Similarly, FX Payment vs Payment (PvP) arrangements for post-trade FX settlements today suffer from inefficiencies due to rigid settlement cycles and lack of support for emerging market currencies, leading to delays and settlement risk. Our decentralised global FX settlements solution enables real-time post-trade settlement for FX trades with PvP arrangements for both primary and emerging market currencies. This eliminates settlement risk and allows instant access to liquidity when required, eliminating delays and rigid settlement cycles,” he shared.

Leveraging distributed ledger technology (DLT), Partior combines tokenised deposits and assets into a single programmable platform to ensure transparency, liquidity, and settlement finality.

“As for transparency, Partior employs a permissioned ledger system, ensuring that only authorised participants have access. This approach guarantees real-time visibility across the entire payment chain, enhancing transparency from initiation to settlement. With regard to liquidity, Partior’s 24×7 availability allows for continuous payment and settlement processing and extends operational hours beyond traditional cut-offs. As a result, funds can be moved almost instantaneously across borders and time zones, enhancing liquidity management efficiency.

When it comes to settlement finality, DLT within Partior ensures on-chain settlement finality and eliminates the need for lengthy reconciliation processes while reducing settlement risks associated with traditional systems,” Valenbreder elaborated.

Partior also offers innovative capabilities for settlement efficiency, such as Intraday FX swaps, Programmable enterprise liquidity management, and Just-in-time (JIT) multi-bank payments.

The Intraday FX Swaps capability enables banks to execute and settle transactions within shorter time frames, ranging from hours to minutes. Banks can address their immediate liquidity needs, optimise capital utilisation and capture new revenue opportunities through funds that would otherwise be tied up as collateral for pre-funding requirements.

At the same time, the programmable multi-bank, multi-country cash concentration across multiple banks and countries helps corporates optimise their group cash balances. By automating cash management processes, corporates can deploy funds more strategically, improving control of liquidity and cash flows.

On the other hand, the JIT Multi-Bank Payments solution allows large corporates and multinational corporations with global treasury operations to consolidate cash and efficiently manage payments to overseas subsidiaries. By facilitating immediate fund transfers upon payment initiation, JIT payments enhance operational efficiency and reduce the complexity of cash forecasting and funding across diverse banking relationships and markets.

Partior’s concurrent payments pre-validation enables payment information to be checked and validated before funds transfer. This helps to prevent errors and optimise liquidity usage.

Last week, Partior announced the first close of its US$60 million+ Series B funding round, which was led by Peak XV Partners and participated in by Valor Capital Group, Jump Trading Group, J.P. Morgan, Standard Chartered, and Temasek. The funding will accelerate the development of new capabilities such as Intraday FX swaps, Programmable Enterprise Liquidity Management, and Just-in-Time multi-bank payments.

“We will also focus on expanding our geographical reach through the growth of our international network by integrating additional currencies, including AED, AUD, CAD, CNH, GBP, JPY, MYR, QAR, and SAR, to complement USD, EUR, and SGD, which are currently live on the Partior platform,” he added.

Also Read: Evaluating the spread of blockchain technology in the financial sector

“The involvement of Peak XV, Jump Trading Group, and Valor Capital Group also enhances our reach and influence in key markets, complementing the global presence established by our existing investors,” Valenbreder said.

By leveraging blockchain technology, Partior is poised to redefine the landscape of cross-border payments. With its focus on real-time settlement, transparency, and cost-efficiency, the company is addressing the critical pain points that have long plagued the industry. The recent infusion of capital underscores the immense potential of Partior’s solution and its ability to transform the way money moves across borders. As Partior expands its network and introduces new capabilities, it is well-positioned to become a leading player in the global payments ecosystem.

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