Many people have never understood what’s so great about staying in Singapore; it’s small, expensive, and boring.
Recently, I happened to meet several groups of major players from the investment and crypto circles who have just moved to Singapore. After chatting with them a few times, a few common reasons emerged as to why they chose to leave places like Europe, the US, Canada, and Australia:
1. Tax Issues: The United States has global taxation, including significant inheritance taxes, whereas Singapore’s upper limit is just 24%, and it has no inheritance tax.
2. Education: Currently, more and more people from China are considering Singapore for education. While Singapore’s education may not be the absolute best globally, it is already the top choice in Asia. The National University of Singapore (NUS) and Nanyang Technological University (NTU) are top-tier options, and for children, there is a gradual and structured progression.
3. Social Integration: Most people from China are not exceptionally outgoing socially, especially when facing racial and language differences, which can lead to a feeling of not fitting in. However, Singapore can serve as a stepping stone to manage these issues. There are almost no barriers to speaking Chinese in Singapore, and learning some simple English is also manageable, which reduces communication costs and social anxiety.
4. Work-Related Matters: Many who come to Singapore haven’t given up their work entirely. They might be opening a branch in Singapore or managing their business remotely from here. A large portion cannot completely detach from their businesses in China. Singapore is just over 4 hours from Shenzhen, over 5 hours from Shanghai, and over 6 hours from Beijing, allowing for quick response times.
5. Safety and Security: Although there have been one or two incidents in Singapore in the last six months, overall, as long as you don’t look for trouble, Singapore’s safety is arguably the best in the world. I’ve seen several tycoons walking their dogs freely on the streets without needing security. This point is particularly important.
6. Obtaining Status: Relatively speaking, obtaining an EP (Employment Pass) in Singapore is very simple and direct, with a validity of two years. Not to mention Permanent Resident (PR) or citizenship status, the EP is sufficient for most situations. With an EP, you can register as a Singapore tax resident and apply to bring your entire family over.
7. Financial Matters: Especially for those in the crypto community, Singapore has compliant Over-The-Counter (OTC) channels. Although the fees are slightly higher, it allows for the compliant conversion of cryptocurrency into Singapore dollars or US dollars, which can then be deposited into a bank. The prerequisite is that you need to have a Singaporean status.
8. Trusts and Family Offices: For ultra-high-net-worth investors, Singapore’s trust system is somewhat better than that of the US. The terms can be designed with more flexibility, and it can even support collateralized lending against #BTC and #ETH ETFs (once available).
9. Entertainment Needs: I won’t say too much. Don’t ask, and even if you do, I won’t tell.
In reality, there are many more reasons, but I won’t list them all.
Overall, for the Chinese community, Singapore is an excellent choice. It offers both offensive and defensive advantages.
After reading all this, do you think Singapore is suitable for major players in the investment world?
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