Wealthiest Chinese want to move to Singapore

According to a recent report by the Bank of China and Hurun Report, China has approximately 271 US dollar billionaires and 960,000 high-net worth individuals (HNWIs) and entrepreneurs worth more than S$2 million (10 million yuan) each. However, close to half (46%) of them are considering migration while 14% are in the process of doing so. Their top destinations outside of Asia are predictably United States and Canada. In Asia, Singapore emerged as their top pick for a relocation destination.

The question then is why Singapore, when China itself is expected to rise as an economic superpower? Many of the HNWIs, whose median age is 42, quote one of three factors as their primary reason for resettling their families and their wealth elsewhere.

Better education opportunities
The first reason cited is the necessity to provide better education opportunities for their children. Many of China’s HNWIs find the education system in China to be rigid and wish to expose their children to an environment where a higher quality of education is the norm.

In contrast, many global leaders from developed countries such as United States and Denmark, have looked to Singapore’s education system as a point of reference when discussing a restructuring of their own education systems. As a premier education destination, Singapore is connected to more than 16 international institutions and is home to a wide variety of world-class educational institutions such as INSEAD, NYU-Tisch, TUM Asia and Edhec. Local universities National University of Singapore and National Technological University have also ranked well in global university surveys. Additionally, many other acclaimed universities such as MIT, Cornell and John Hopkins have collaborated with local universities to offer unique programs and courses unavailable elsewhere.

Analysis by SingaporeStartup.com shows that Chinese HNWIs need not venture far to provide their children with world-class education that offers a unique blend of Eastern and Western perspective. Furthermore, when they enter the working world, they will have access to a variety of workforce skills qualifications (WSQ) courses, a national endeavor to inspire life-long learning amongst professionals.

Asset security and strong corporate governance
Another reason wealthy Chinese entrepreneurs want to look for a home away from home is to have peace of mind that their assets are secure. Many, who have found their fortune in retail, construction or property sectors, are wary of widespread corruption and fear they could unwittingly end up behind bars and lose their assets for offending officials.

By resettling in developed countries like Singapore, wealthy entrepreneurs are simultaneously safeguarding their wealth whilst guaranteeing their personal safety. Singapore offers a safe environment for entrepreneurs and investors by practicing strong governance and building an environment of trust for not only capital but intellectual property protection as well. As addressed in the latest President’s Addenda, Singapore’s monetary, finance and trade authorities will work towards strengthening the country’s financial sector resilience and ensure inclusive growth and security for all, in the midst of a new normal economy.

Eligible for the Singapore Global Investor Program
Another reason why wealthy Chinese investors and entrepreneurs choose Singapore as their top relocation destination within Asia is that they can meet the capital requirements to apply for the Singapore Global Investor Program (GIP). Through the GIP, investors and entrepreneurs can qualify for permanent residence for themselves and their dependents (spouse and children under the age of 21). The GIP allows investors to choose one of three outlets to channel a minimum sum of S$2.5 million into i.e. 1) a new Singapore corporation, 2) expanding an existing business or 3) an approved GIP fund. As business owners, it would not be difficult for Chinese entrepreneurs to demonstrate that they have good business track records, entrepreneurial backgrounds and credible business proposals (if they want to form Singapore LLCs) or investment plans.

Furthermore, Singapore’s legislation and prudent fiscal practices ensure that the interests of investors and entrepreneurs alike are safeguarded and not compromised. Together, these three factors account for Singapore’s emergence as a top relocation destination in Asia for Chinese HNWIs.