The Wealthy Need to Protect Their Assets Better

One of the more unusual things about HNW in Asia, is that unlike equivalent wealthy families in Europe and the US, they tend to hold assets directly, or personally controlled family businesses.  Previously, there was little need for this in place such as Singapore and Hong Kong, where estate and capital gains taxes were either minimal or non-existent.  The wealthy tended to invest close to home, and stick to the family business and immediate ecosystem. 

In recent years, due to sovereign borrowing to tide through the economic contraction of the pandemic, due to the increased gap between the socioeconomic classes, and consumer activism, among many other factors, there is increased pressure on a wealth tax, and increased taxes on the wealthy.  This is not unjustified in places like the US.  A wealth tax is not the way Singapore should go. 

In such a climate, it becomes necessary to utilise trust structures, investment funds, VCC set-ups, and other, more sophisticated structures and vehicles to mitigate tax exposure across multiple jurisdictions, silo off risk, and manage varying asset classes.  People are learning that insurance policies are themselves distinct financial instruments, and not just for mitigating risk exposure.  SFOs in Singapore are expected to not only increase in number, but in sophistication as well.  That is our business opportunity for Equinox GEMTZ.