Taiwan’s Wealthy Shift Assets to Singapore as Geopolitical Risks Rise

Allen Tsai, founder of the Taiwan Institute of Directors,
told Bloomberg that more than 80% of Taiwanese offshore assets were once
concentrated in Hong Kong.

Today, he estimates that roughly 60% to 70% are now managed
in Singapore instead.

Professor Hsi-Mei Chung from Taiwan’s I-Shou University said
Singapore’s political neutrality, financial stability and easier residency
pathways have strengthened its appeal, while Hong Kong’s attractiveness has
declined amid changing political conditions.

AI boom creates larger fortunes

The movement of wealth comes as Taiwan experiences one of
the fastest expansions in private wealth across Asia, largely driven by the
global artificial intelligence boom.

According to UBS, Taiwan is now home to nearly 772,000
millionaires, exceeding Hong Kong’s estimated 628,000.

As fortunes grow, many wealthy families are focusing more on
long-term wealth preservation, succession planning and international
diversification.

Family offices have become an increasingly popular
structure, allowing affluent families to manage investments, tax planning and
inheritance under one organization.

Several Taiwanese companies have also begun relocating
regional operations to Singapore.

Leo International Group, which operates businesses in asset
management, healthcare and education, recently announced plans to move its
global headquarters to Singapore while establishing a family office there as
part of its long-term strategy.

Another Taiwanese entrepreneur, identified only as Danny due
to the sensitive political nature of the issue, said he plans to relocate his
family to Singapore after already opening an office there several years ago.

He said the city-state offers a more predictable environment
for raising his children over the coming decades.

Banking industry follows the money

The relocation of Taiwanese wealth has also created new
business opportunities for banks operating in Singapore.

Major Singapore banks have expanded services targeting
Taiwanese high-net-worth clients, while Taiwanese lenders have strengthened
their local presence to support customers moving assets overseas.

CTBC Bank, which established its private banking booking
centre in Singapore in 2012, said assets under management there have grown to
around US$9 billion (S$11.64 billion), nearly doubling from less than US$4
billion in 2020.

The bank has also expanded the number of relationship
managers serving Taiwanese clients from five to about 20 during the same
period.

Other Taiwanese banks are also increasing investments in
Singapore.

Taipei Fubon Bank plans to enlarge its wealth management
team in the city-state by the end of this year, while Taishin International
Bank said assets managed by its Singapore branch have climbed from about NT$2
billion in 2014 to NT$42.7 billion (S$1.73 billion).

Sources familiar with the matter also said some state-backed
Taiwanese lenders are studying whether to expand into Singapore’s private
banking sector, attracted by the country’s financial ecosystem and tax
advantages.

Recruitment firms are seeing similar demand.

Pierre Pineau, Asia market head at family office advisory
firm Agreus Group, said he has helped several wealthy Taiwanese families
establish family offices in Singapore over the past two years.

For many of these families, the decision is less about
abandoning Taiwan than preparing for uncertainty.

As Huang put it, Taiwanese people have learned not to take
peace for granted.

“We prepare for crisis during peaceful times,” he
said. “That gives us confidence to face whatever the future may
bring.”