Upcoming Singapore Budget may give further tax incentives for philanthropy, sustainability
Singapore’s strong family office sector is likely to continue to boost the wealth management businesses of the local banking trio, analysts said.
Family Offices Boosting Onshore Deposit Business and Liquidity
More family offices have tended to be beneficial for the onshore deposit business and liquidity of the banks, said Jayden Vantarakis, head of Asean research at Macquarie Capital. The inflow of family office wealth is expected to boost assets under management (AUM) for local lenders.
Enhanced Due Diligence Requirements Attracting Sophisticated Families
Tareck Horchani, head of prime dealing at Maybank Securities, expects the enhanced due diligence requirements to attract more sophisticated families, which should mean higher-quality assets and premium services – further increasing wealth management fees. He also expects banks with expertise in structuring philanthropic contributions to benefit from increased spending in these areas.
Philanthropy and Sustainability
The upcoming Singapore Budget may provide further tax incentives for philanthropy, sustainability, and environmental initiatives. This could lead to an increase in wealth management fees for banks with expertise in structuring philanthropic contributions.
Conclusion
The strong family office sector in Singapore is expected to continue to boost the wealth management businesses of the local banking trio. The enhanced due diligence requirements and potential tax incentives for philanthropy and sustainability may attract more sophisticated families and increase wealth management fees for banks with the necessary expertise.
FAQs
Q: What is the expected impact of family offices on the onshore deposit business and liquidity of banks?
A: Increased inflow of family office wealth is expected to boost assets under management (AUM) for local lenders and benefit their onshore deposit business and liquidity.
Q: How will enhanced due diligence requirements affect the wealth management industry?
A: Enhanced due diligence requirements are expected to attract more sophisticated families, resulting in higher-quality assets and premium services, which will further increase wealth management fees for banks with the necessary expertise.
Q: What is the potential impact of tax incentives for philanthropy and sustainability on the wealth management industry?
A: Tax incentives for philanthropy and sustainability may attract more families with a focus on these areas, leading to increased wealth management fees for banks with expertise in structuring philanthropic contributions.
