Cash-for-residency scheme: time for Hong Kong to catch Singapore in family office programme, consultants say

Singapore’s Global Investor Programme offers permanent residency for wealthy families to relocate with pre-set investment, hiring requirements

Hong Kong is listening to calls to reinstate its Capital Investment Entrant Scheme, frozen since 2015 amid complaints it contributed to ‘hot money’ inflows

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The International Commerce Centre tower, seen from Wan Chai, Hong Kong. Photo: Xiaomei Chen

Published: 8:30am, 28 Dec 2022

Singapore ranks among the top five countries for wealthy investors, according to a report published by Henley & Partners, a UK investment migration consultancy. Mainland China and Hong Kong top the net outflows.

The research underscores the widening gap between Hong Kong and Singapore in their role as Asia’s hub of choice for family offices – investment vehicles for the ultra-rich to invest and transfer their wealth through generations.

The Southeast Asian nation has showcased its success in luring the likes of Tolaram Group from Indonesia, property and healthcare tycoons from mainland China by highlighting its political stability, tax benefits and high standard of living. Google’s co-founder Sergey Brin and Bridgewater Associates’ Ray Dalio and Haidilao’s co-founders have also favoured the city, according to media reports.

Katerine Kou, the CEO of Victory Securities, argues it’s time for Hong Kong to make up for lost time by reviving its investment-based migration programme – known as Capital Investment Entrant Scheme (CIES) – as the city moves closer to reopening its borders and dismantling pandemic-related travel curbs.

Katerine Kou, CEO of Victory Securities, says it is time Hong Kong revived its investment-based migration programme. Photo: Jonathan Wong

“For wealthy families who want to relocate, Singapore is currently the top choice [in the region] as it wraps its investment migration programme by promoting family offices,” said Kou, whose firm has operations in both cities. “Hong Kong needs to catch up.”