[SINGAPORE] Singapore\u2019s status as a \u201csafe haven\u201d, as well as its stability and regulatory environment, make it an attractive destination for philanthropists \u2013 for example, family offices and high-net-worth individuals \u2013 setting up foundations, said Christoph Courth, global head of philanthropy services at Pictet Wealth Management.<\/p>\n
\u201cSwitzerland and Singapore are similar in many respects, particularly in terms of safety, security and regulatory environment,\u201d he said in an interview with The Business Times<\/em> in April.<\/p>\n Switzerland has the highest concentration of charitable foundations in the world at more than 17,800, while the speed at which foundations are being set up in Singapore is \u201cunlike anything we\u2019ve seen elsewhere\u201d, noted Courth.\u00a0<\/p>\n This is in line with the growth of single family offices in Singapore. As at end-2024, this number exceeded 2,000<\/a> and was up 42.9 per cent year on year. Globally, more than 70 per cent of family offices manage philanthropic efforts, noted a BNY Mellon 2022 report.\u00a0<\/p>\n Based on the Commissioner of Charities\u2019 Annual Report 2024, there were 2,406 registered charities in Singapore as at end-2024 \u2013 up from 2,398 the year before. Singapore is also home to more than 400 foundations and trusts registered with the Commissioner of Charities.<\/p>\n Angie Han, head of wealth planning for South Asia at Pictet Wealth Management, said there is a \u201cnatural progression\u201d for wealth-holders to set up foundations in Singapore \u2013 especially because they may already have a footprint here.<\/p>\n Get the insights delivered to your inbox.<\/p>\n<\/div>\n<\/div>\n \u201cSingapore is politically stable \u2013 philanthropists know what to expect. There\u2019s a lot of push from the government as well, and a lot of support to create this ecosystem with different stakeholders,\u201d she said.\u00a0<\/p>\n The government has measures in place to position Singapore as a philanthropy hub. For example, the Philanthropy Tax Scheme for Family Offices offers 100 per cent tax deductions for overseas donations for five years.\u00a0<\/p>\n In addition, donors who make tax-deductible donations to qualifying grantmaking philanthropic organisations \u2013 typically non-profit entities such as private foundations \u2013 are eligible for 250 per cent tax deductions, until end-2029.<\/p>\n Both Courth and Han said tax incentives are not a big push for wealth-holders, but an added benefit.<\/p>\n \u201cTax is very rarely the primary driver \u2013 it\u2019s more seen as the cherry on the cake. The transparency aspect and faith in the system is similar between Switzerland and Singapore,\u201d Courth said.<\/p>\n Han added: \u201dFor foundations, if you think about the regulatory environment, they are more concerned with regard to compliance and reporting obligations. Singapore has gotten more stringent over the years, and that is more important to them.\u201d\u00a0<\/p>\n In her conversations with wealth-holders, Han noted that they are more interested in finding out about auditing needs, what services are available, and what the \u201clighter-touch regime\u201d means for them.<\/p>\n Grantmakers follow a regulatory regime, administered by the Commissioner of Charities, which encourages giving while ensuring accountability.<\/p>\n In a guidance on the regulation of grantmakers in October 2024, it said: \u201cGrantmakers are often founded with private money (family, corporate, etc) and do not raise funds from the public, and thus differ from typical charities.\u00a0<\/p>\n \u201cIt will therefore be appropriate to regulate grantmakers under a lighter-touch regime, where certain regulatory requirements that are less pertinent to grantmakers will be waived.\u201d<\/p>\n Courth added: \u201cIf I want my foundations to last forever, I need to be in a place that is safe, secure and politically neutral, but with the ability to give cross-border with no issues whatsoever.\u201d<\/p>\n Courth and Han stated that with the current geopolitical climate, more wealth-holders are moving their funds to jurisdictions deemed \u201csafe\u201d.\u00a0<\/p>\n He said: \u201cOver the past few years, there\u2019s been a general trend of instability and concern\u2026 the conflicts that we\u2019re seeing today, the questioning of Nato\u2019s relevance, USAid cuts.\u201d<\/p>\n The US government earlier this year announced the slashing of funds under USAid<\/a>, an agency which spent around US$40 billion a year on humanitarian aid around the world. Courth said pulling this funding was a \u201cmassive shock\u201d.<\/p>\n Han added: \u201cThe reduction in funding means that it\u2019s time for us to step up. A lot of the philanthropists and families that we speak with are eager to do that. Singapore also offers a lot of space for this, because the government is also pushing for innovative funding ideas.\u201d<\/p>\nPush from the government<\/h2>\n
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a new global order<\/h3>\nGeopolitical tensions and concerns<\/h2>\n