Singapore's position as Asia's preeminent wealth management hub has been underscored by the explosive growth of its family office ecosystem. According to MAS data, the city-state hosted over 2,000 single-family offices (SFOs) by end-2024, a nearly fourfold increase from approximately 400 in 2020, with collective assets under management projected to surpass S$120 billion in 2025.
However, this rapid expansion has been accompanied by a commensurate tightening of the regulatory framework. The suite of reforms that took effect in 2025 represents a paradigm shift for high-net-worth families establishing or operating family offices in Singapore.
Fundamental Change in AUM Measurement
Effective January 1, 2025, MAS redefined the calculation basis for fund Assets Under Management from Net Asset Value (NAV) to the total value of Designated Investments (DI). Only qualifying financial instruments — equities, bonds, fund units, derivatives, and similar instruments — now count toward AUM thresholds. Non-financial assets such as real estate and art are excluded.
Section 13O funds must maintain a minimum of S$5 million in designated investments, while Section 13U funds require at least S$50 million. This change compels family offices to reassess their asset allocation to ensure sufficient concentration in qualifying instruments.
Tiered Local Business Spending
The previously uniform Local Business Spending (LBS) requirement has been replaced by a tiered model calibrated to fund size. Funds below S$250 million must spend at least S$200,000 annually; those between S$250 million and S$2 billion must meet a S$300,000 threshold; and funds exceeding S$2 billion face a S$500,000 minimum.
LBS encompasses fees paid to Singapore-based service providers, including fund management, legal advisory, audit, and trustee fees. The tiered approach reflects MAS's emphasis on economic substance — larger family offices are expected to make proportionally greater contributions to Singapore's local economy.
Enhanced Investment Professional Requirements
MAS has raised the minimum staffing requirement from one to two Investment Professionals (IPs), with at least one required to be a non-family member. IPs must be based full-time in Singapore, possess relevant investment management qualifications and experience, and be directly involved in investment decision-making.
This measure is designed to elevate governance standards and prevent the formation of shell structures, while simultaneously creating employment opportunities for local financial talent.
Accelerated Processing Timeline
MAS has committed to reducing the processing time for family office tax incentive applications to within three months, subject to completeness of documentation and satisfactory due diligence outcomes. This improvement addresses longstanding market concerns about protracted approval cycles and significantly enhances Singapore's competitive appeal to global wealth families.
Corporate Service Providers Act
The Corporate Service Providers Act 2024, effective June 9, 2025, mandates registration with ACRA for all entities providing corporate services, including nominee-director arrangements commonly utilized in SFO structures. Non-compliance carries penalties of up to S$100,000.
The Act places corporate service providers under the same rigorous AML/CFT regulatory regime applicable to financial institutions, requiring robust client due diligence and comprehensive record-keeping. For family offices, this translates to enhanced transparency and auditability of nominee structures.
Outlook and Recommendations
The 2025-2026 regulatory reforms signal Singapore's transition from quantitative growth to qualitative enhancement in its family office sector. By raising thresholds and strengthening substance requirements, MAS aims to attract families with genuine long-term investment commitments while filtering out purely tax-motivated arbitrage structures.
Families considering Singapore as a family office jurisdiction should engage professional advisory teams early, comprehensively assess asset allocation against the new DI-based AUM requirements, ensure adequate investment professional staffing, and fully understand the tiered LBS framework to meet regulatory expectations optimally.