Introduction

A group of affluent Indian families is following in the footsteps of the Ambani dynasty, known for their vast empire through Reliance Industries, as they establish family offices in Singapore to manage and grow their wealth. This trend is becoming increasingly popular among young Indian business elites who wish to secure their financial legacy while preserving the core values that catalyzed their success.

Ambanis' Decision

The Ambanis set up their family office in Singapore back in 2022, choosing this city-state for its political stability, robust economic conditions, and favorable tax policies. According to DBS Bank, an astounding US$4 trillion (approximately S$5.2 trillion) in wealth among the Indian diaspora is projected to be transferred from one generation to the next within the upcoming decade, underscoring the urgency of proper wealth management.

Singapore's Appeal

"Singapore has emerged as the preferred destination for ultra-high-net-worth Indian families aiming to create family offices outside of India," stated Mr. Shee Tse Koon, head of consumer banking and wealth management at DBS Bank. "The nation's transparent regulatory framework and credibility significantly enhance its appeal."

Current Landscape in Singapore

Currently, Singapore hosts nearly 60% of Asia's family offices, with the number of wealthy families establishing these entities in the country expected to rise from 2,800 in 2022 to around 3,200 this year, per DBS estimates.

Growth of Indian Wealth

As the bank unveiled its sixth annual family office report on November 5, it shed light on a growing demographic of 13,200 Indians with a net worth exceeding US$30 million—a figure anticipated to climb rapidly. In 2023 alone, approximately 6,500 high-net-worth individuals are believed to have left India for countries like Dubai, Singapore, Europe, and the United States, seeking better investment opportunities and governance structures.

Need for Family Offices

Many affluent Indians recognize the necessity of a formal family office setup to mitigate compliance and governance challenges. Mr. Amit Patni, founder and director of RAAY Foundation, notes that traditional family structures often blur the lines between managing business and personal wealth. His own experience reflects this; after selling Patni Computers, a major player in India’s IT sector, he established RAAY Global Investments as a vehicle for his family's growth and entrepreneurial aspirations.

Transition to Multi-Family Offices

Wealthy Indian families, typically those with investable assets over US$5 million, often move towards creating multi-family offices (MFOs). This model enables them to pool resources for top-tier financial guidance while minimizing costs. For instance, Mr. Vimal Shah, chairman of Bidco Africa, utilizes multiple MFOs across Singapore, Mauritius, Dubai, and Switzerland for investment advice rather than pursuing a single-family office.

Investment Behavior Shift

In a global economic landscape increasingly influenced by technology, younger affluent Indians are gravitating towards startup investments. Over the last two decades, Indian family offices have supported over 200 startups, becoming active players in investment rounds. Historically, these families favored physical assets like real estate and gold; however, the changing economic climate—highlighted by high interest rates and fluctuating property markets—has prompted them to reconsider their investment strategies.

Conclusion

The influx of Indian families to Singapore not only demonstrates a burgeoning trend in wealth management but also enriches the multicultural fabric of this vibrant city, setting the stage for a new era of investment dynamism. As this shift unfolds, it becomes evident that Singapore may not just be a safe haven but also a launching pad for the ambitious dreams of India's affluent.