Singapore is witnessing the arrival of very wealthy families from China, who are leaving their country in increasing numbers with the aim of keeping their fortunes out of the reach of the Communist Party, which is looking at them with caution.
New sanctions imposed by the Chinese authorities on tech billionaires, stars who have not paid their taxes, and three years of implementation of the “zero-Covid” policy, have prompted the rich Chinese to seek refuge outside the country.
An increasing number of them are choosing Singapore, according to informed sources confirmed to Agence France-Presse, so the Asian financial center has become the first destination for fleeing entrepreneurs.
The same party has been running on the island for six decades, demonstrations and strikes are prohibited there, taxes are relatively low, and most of its residents are of Chinese origin.
The arrival of wealthy Chinese people has recently attracted attention, and some of them have chosen luxurious sea-view residences on Sentosa Island.
"You can't imagine how much they're spending. It's crazy," said Pierce Cheng, CEO of IAMS, which provides baggage and immigration services.
And he recounted that he witnessed, at a party with one of his customers, a rare "Yamazaki 55" whiskey, the value of a bottle of which could reach $800,000.
His company helps newcomers find luxury apartments, hire drivers and enroll their children in private schools.
Newcomers want to drive around in Rolls-Royce or Bentley cars and go to elite golf clubs such as Sentosa Golf Club, with annual membership fees of $670,000.
"A lot of them are young Chinese, wearing designer clothes and hanging out with each other, which is not surprising," said Benny Teo, who runs golf club marketing consultancy Blazone.
-"Here's my money"
Moving to Singapore allows the richest Chinese to keep their wealth out of the reach of the Chinese authorities, after the media published several issues that aroused their fear.
The founder and former president of the giant Chinese e-commerce company, "Alibaba", Jack Ma, incurred losses estimated at $ 25 billion when China stopped at the last moment a huge offering of his group on the stock exchange in 2020.
Other large entrepreneurs fear that the Communist Party will also target them, or that they will be forced to sell their groups at a low price, according to an accounting business manager in the sector.
"Moving to Singapore helps protect the family's wealth for generations," the specialist told AFP.
Another informed source pointed out that Singapore is becoming more and more a place of stability.
One customer was quoted as saying, "At least I know here that my money is mine."
One of the founders of the "Hidelaw" restaurant chain recently set up a "family business" to manage the assets of wealthy clients in Singapore.
The Monetary Authority of Singapore reports that the number of family businesses more than doubled from 2020 to 2021, reaching 700.
Luo Qiaming, co-head of the Wealth Management Service at law firm Denton Roddick, estimates there will be about 1,500 on the island by the end of 2022.
"I wouldn't be surprised if the aggregate figures show that one in every two family businesses came from China," he said.
"neutral zone"
It is expected that the flow of wealthy Chinese to Singapore will continue even as Beijing lifts the restrictions it imposed to combat Covid-19.
In turn, the escalation of tensions between Washington and Beijing is prompting some entrepreneurs to leave China.
Song Seng Won, an Asia economist at private bank CIMB, said Singapore was a "very practical neutral zone" for the super-rich to set up business.
Singapore has been able to maintain close relations with the United States and strong trade relations with China, which has enhanced its security.
"The media attention on wealthy people who set up a family business in Singapore has put our little island in the limelight," Loh said.
He confirmed that his clients were thinking, "If the rich of this world are going to Singapore, why shouldn't I do that too?"
Tags:
ASIA EAST UPDATE