According to Senior Minister Tharman Shanmugaratnam, single family offices (SFOs) that have secured tax incentives in Singapore employ around 1,400 Singaporeans and permanent residents (PRs). Notably, about 900 of these positions have been created in the last three years, reflecting a significant job growth trend in this sector.

In a written parliamentary reply, Tharman noted that two-thirds of employees in these family offices earn over S$5,000 per month, while more than 400 earn between S$2,000 and S$5,000. Fewer than 50 individuals receive salaries of S$2,000 monthly or less.

The Monetary Authority of Singapore (MAS) does not have comprehensive data on all SFOs since they are not required to be licensed due to their non-management of third-party assets. However, MAS does track SFOs that apply for tax incentives under Sections 13O and 13U of the Income Tax Act.

Tharman emphasized the dual contributions of SFOs to the Singapore economy: job creation within the offices themselves and the generation of revenue that benefits external service providers, including banks and law firms. While MAS currently lacks data on revenue contributions from SFOs to other businesses, it plans to conduct surveys for further insights.

Member of Parliament Mariam Jaafar raised inquiries regarding studies to quantify the impact of family offices established in recent years and their comparative contributions relative to other employment groups.

Tharman clarified that the tax incentive schemes do not confer PR or citizenship status to foreign owners of SFOs, ensuring that residency status does not affect the conditions for receiving these incentives. He reiterated that MAS will continue to evaluate the tax schemes to ensure they yield substantial benefits for Singapore.

As Tharman concludes his tenure as MAS chairman, Deputy Prime Minister Lawrence Wong is set to assume the role on July 8.