In the latest ION Influencers Fireside Chat, Ben Choo, Founding Partner and CIO of Racson Capital, unpacks the fast-changing family office landscape in Singapore and Hong Kong.

The discussion covered the evolution of wealth management, government incentives, investment strategies, and the future of intergenerational wealth transfer across Asia’s top financial hubs.

1. The Evolution of Family Offices in Asia

Choo traced the two-decade transformation of wealth management in Asia.
In the early 2000s, most high-net-worth individuals relied on private banks. Over the past decade, however, the rise of independent advisers and external asset managers (EAMs) has reshaped the industry, mirroring trends long seen in the U.S. and Europe.

“Ten years ago, family offices in Asia were rare. Now, Singapore and Hong Kong have become global magnets for wealth,” said Choo.

2. Why Singapore Leads the Family Office Boom

Choo credited Singapore’s Monetary Authority (MAS) for fueling growth through tax incentives, the Global Investor Program, and a strong governance framework.
He highlighted Singapore’s appeal — English-speaking, multicultural, and strategically positioned for Southeast Asia — as key reasons why more than 2,000 family offices now call it home.

Hong Kong, with about 2,700 family offices as of late 2023, continues to compete closely, creating a healthy rivalry between the two hubs.

3. Barriers and Incentives: Setting Up a Family Office

While Singapore remains welcoming, Choo noted rising thresholds for entry:

• Minimum capital requirements have increased (e.g. SGD 20–50 million).

• Firms must meet spending and governance standards to qualify for 13O and 13U tax exemptions.

Still, Choo said, the process remains accessible — typically taking six to twelve months — and worthwhile for families seeking control, privacy, and legacy planning.

4. Building for the Next Generation

A recurring theme was intergenerational wealth transfer.
Most Asian family offices are first- or second-generation, unlike their European counterparts with centuries-old dynasties.

Choo emphasized early involvement of heirs through education, philanthropy, or venture investments.

“Without planning, inherited wealth often erodes. Families must embed financial values early so the next generation can sustain the legacy,” he said.

5. Shifting Portfolios: From Public Markets to Private Credit

Choo explained that traditional 60/40 equity-bond portfolios no longer offer the same diversification benefits.
His family office allocates 30–40% of capital to private credit, particularly in real estate-backed loans across common-law markets like Australia, the UK, and Singapore.

This strategy balances yield and liquidity, delivering returns of 12–15% annually while maintaining tangible exposure to property markets.

6. Due Diligence and Manager Selection

Choo described his approach to vetting fund managers as similar to private equity deal-making — emphasizing integrity, transparency, and long-term alignment over short-term performance.

Relationships deepen over years:

“You only really know a manager after weathering a few market cycles together,” he noted.

7. The Role of the Modern CIO

As CIO, Choo balances technical portfolio management with human insight — understanding family needs, liquidity requirements, and legacy ambitions.

“It’s not just about returns,” he said. “It’s about relationships — between generations, values, and visions.”

8. The Future: Consolidation and Global Connectivity

Looking ahead, Choo expects:

• More multifamily office consolidation as smaller firms merge to reduce costs.

• A redefined role for private bankers, who now advise on lifestyle, residency, and education alongside investments.

• Growing diversity in Singapore and Hong Kong’s family office ecosystem, with more entrants from the U.S., Europe, and the Middle East joining Asian peers.

Key Takeaways

• Singapore and Hong Kong remain Asia’s twin pillars for family office growth.

• Regulation, tax benefits, and talent continue to attract global wealth.

• Private markets and credit strategies are increasingly central to family portfolios.

• Legacy planning and education are critical for preserving intergenerational wealth.

Key timestamps:

00:07 Introduction to the Fireside Chat
02:50 Milestones in Family Offices Over Two Decades
04:54 Attraction of Singapore for Family Offices
06:44 Barriers to Setting Up a Family Office
09:59 Reasons for Establishing a Family Office
13:30 Generational Wealth Transfer and Legacy
18:10 Due Diligence in Manager Selection
20:37 Defining Track Record in Investment Management
21:28 Role and Skills of a CIO
22:52 Investment Strategies and Family Needs
23:38 Intergenerational Wealth Management
24:32 Future Trends in Family Offices
25:27 Evolution of Private Banking
26:31 Global Trends in Family Office Establishment
28:02 Conclusion and Closing Remarks