Singapore Investment Tax Cuts Considered as Finance Talent Returns to Hong Kong

Singapore investment tax cuts are under consideration as Hong Kong strengthens its appeal to global fund managers, private equity firms and family offices while attracting senior finance professionals back to the city.

The Monetary Authority of Singapore is consulting the investment industry about possible reductions amid concern that Hong Kong’s proposed reforms could improve its competitiveness.

Hong Kong plans to broaden the definition of investment funds, ease tax exemption requirements for family offices and improve carried-interest treatment.

Industry executives said some Singapore-based fund managers were considering establishing Hong Kong offices to access mainland Chinese markets and benefit from the city’s expanding financial ecosystem.

Hong Kong is home to more than 3,380 single-family offices and manages HKD35tr (USD4.46tr) in assets.

A recovering IPO market and strong demand for professionals with China-related expertise are also supporting recruitment across banks, investment firms and professional services companies, intensifying competition between Asia’s leading wealth management centres.