The 2023 money laundering scandal, known as the “Fujian case”, together with the hardening of financial regulations and migratory, has caused more and more millionaires to reconsider their destiny.
An unexpected course change
According to Henley & Partners data, in 2025 the net entrance of Millionaires to Singapore will be reduced to 1,600, compared to 3,500 from Aprevious year. This fall reflects the Loss of confidence in a country that until recently was considered a favorite refuge of the great Chinese fortunes.
Ryan Lin, director of Bayfront Law in Singapore, in statements to the CBS summarized it clearly: “When Fujian’s news was known, many of these rich Chinese left. So, literally, almost all go to Hong Kong, Middle East, Japan”His office has registered 50% less applications for the installation of Family Office compared to 2022, a figure that illustrates the magnitude of the setback.
Hard regulations and unexpected consequences
The effort of the monetary authority of Singapore (MAS) for shielding the financial system has hardened the opening processes, the creation of family offices and access to permanent residences. Banks have applied additional customer knowledge controls (KYC), reviewing already approved files and even closing accounts.
These measures, although destined to reinforce Singapore’s reputation, have pushed numerous heritage to Hong Kong, Dubai or Japan. Thus, it is better understood why Chinese millionaires no longer see Singapore as a market so attractive to establish their operations.
The weight of cryptocurrencies in the decision
An additional factor has been the Impact of regulation on digital assets. In 2025, Singapore demanded strict licenses for platforms that offer cryptocurrencies or stable currencies even to clients outside the city-states. The minimum capital requirement of $ 250,000 of Singapore and the strict compliance rules have suddenly stopped the enthusiasm of those who made fortune in this sector.
“For this year, those who are in the particular cryptographic space have gone due to this legislation ”, enlighten Lin.
The competence of other financial centers
The normative hardening has coincided with an offensive of rival cities to attract great fortunes. Hong Kong, for example, reactivated its capital investment entry plan in 2024, reducing the time and assets requirements to qualify. Dubai, meanwhile, offers much faster processes for residence approvals and licenses.
Carman Chan, founder of Click Ventures, points out that family offices with a presence in Singapore are relocating: «If they do not have enough locals, that is also a bottleneck because you cannot simply take people from outside and relocate it in Singapore”. These obstacles, united to an adjusted labor market, make the comparison with other places unfavorable.
A market that loses appeal
What initially seemed a temporary adjustment has been consolidated as a sustained trend. The increase in regulatory scrutiny, the hardening of compliance regimes and social changes can contribute to their desire for greater privacy and flexibility in other places.
The current transformation does not mean the end of Singapore as a financial center, but a redefinition of its role in the region. The city-state maintains advantages in infrastructure, legal certainty and connectivity, although the magnetism it exerted on Chinese patrimonies seems to be weakening.