Singapore wealth group denies report of directive to keep quiet on China-linked fund inflows

A private banking industry group in Singapore on Friday denied a media report that the city state had asked global banks to keep quiet on wealth inflows coming from China over the past year due to political sensitivity.

The Financial Times reported earlier on Friday, citing unidentified people, that the “tacit directive” on China wealth inflows was given by the Monetary Authority of Singapore (MAS) during a Feb. 20 meeting of the Private Banking Industry Group (PBIG), co-chaired by the MAS and UBS.

The flow of funds from China into Singapore has become a politically sensitive issue domestically, and the MAS wants banks to keep public discussion of the topic to a minimum, the FT reported, citing the sources.

“MAS has not issued a directive – tacit or otherwise – to banks to keep quiet about the origins of wealth inflows,” the PBIG said in a statement.

The PBIG said that at the Feb. 20 meeting, it “noted that while public commentary tended to focus on fund flows from China into Singapore, the sources of overall inflows into Singapore in fact remain diversified”.

“The increased fund flows into Singapore were from high net-worth individuals from different markets,” it added.

With its tax-friendly regime and seen as politically stable, Singapore has long been a haven for ultra-rich foreigners.

But it has seen a fresh influx of wealth since 2021 after it became one of the first Asian cities to significantly ease pandemic restrictions and as many Chinese became disillusioned with their country’s draconian COVID policies.

The number of Singapore’s family offices – which handle investments, taxation, wealth transfer and other financial matters for the super rich – surged to about 700 by the end of 2021 from 400 at the end of 2020.