Crazy Rich Chinese Immigrants: The New Face of Singapore’s Elite
The Hollywood film “Crazy Rich Asians,” based on a novel by a Singaporean author, presented a fantastical image of Singapore to the world, depicting Chinese billionaires living opulent lifestyles among grand houses and luxurious hotels. The movie depicted Singapore as a never-ending party where the rich socialized constantly and luxury had been always accessible. However, the already affluent city is now experiencing a new influx of wealth, thanks to a surge of tycoons from across the South China Sea. Facing political pressure, strict COVID-19 lockdowns, and concerns about China’s global reputation, many of China’s wealthiest individuals have relocated to Singapore. Wealth management professionals in the city-state report an increasing number of well-to-do clients arriving, leading to speculation that Singapore may overtake Hong Kong as the premier destination for Asia’s rich following Beijing’s crackdown on the former British colony, which has damaged its appeal.
Chinese multimillionaires are moving their wealth to Singapore due to political and economic uncertainties in China, say financial professionals in Singapore. They are receiving one inquiry per week from Chinese millionaires looking to establish a family office, a private investment firm, marking a significant increase from a few years ago. Singapore is seen as a stable and secure destination with a strong rule of law, which makes it an attractive option for wealthy individuals seeking to protect their assets. However, some suggest that the desire to distance themselves from the Chinese government may also be a factor in the influx of wealthy Chinese to Singapore. The head of private banking at Singapore lender DBS notes the growing demand from Chinese clients looking to establish family offices, adding that Singapore has become the preferred “offshore” destination in Asia as Hong Kong’s relationship with China becomes uncertain.
It is not the first time that Singapore has welcomed a large number of immigrants from China. The city-state has a long history of Chinese migration dating back to the 19th century, when it was a colonial shipping port and Chinese merchants and workers arrived in large numbers. This history has led to a close relationship between Singapore and China, with more than 75% of Singapore’s population being ethnic Chinese, and every prime minister since independence also being Chinese. Singapore also maintains strong trade ties with China, its largest trading partner. In the late 20th century, Singapore emerged as a low-tax business center, and many Chinese have used it as a place to shelter their money in offshore funds. However, with China’s economy also booming, relatively few were interested in emigrating to recently.
More and more Chinese nationals are settling in Singapore and seeking permanent residence, according to a former Singapore official. Beijing’s increasing talk of “common prosperity” and targeting entrepreneurs has made many Chinese business people uncertain about their future in China, while Singapore is perceived as more welcoming to the wealthy. The island of Sentosa, located off the south coast of Singapore, serves as a billionaire’s enclave and has seen an uptick in luxury cars. Chinese billionaires have traditionally treated Singapore as a place to visit, but now they are looking to become permanent residents. Despite the Singapore government’s promise to regulate foreign money more tightly, the influx of wealthy Chinese nationals to Sentosa’s luxury beachside villas continues. This has led to pressure on the government to address the issue of inequality and the benefits of attracting elite foreigners. Singapore’s Monetary Authority has introduced regulations to enhance the positive spillovers to the Singapore economy, but it has not deterred Chinese clients from seeking to establish family offices in Singapore. Singapore is becoming more attractive for Chinese billionaires, not only for its stable economy and a strong rule of law but also in the broader geopolitical context. Singapore is seen as a friendly place for Chinese because it is geographically and culturally close, and the Economic Development Board (EDB) actively promotes Singapore as the “ideal destination” for family offices. Singapore is also taking a number of steps to attract more wealth from abroad, which is making it more attractive to Chinese billionaires.
Forbes has released its annual World Billionaire List for 2022, which includes returning billionaires as well as new names.
Li Xiting, the founder and chairman of Shenzhen Mindray Bio-Medical Electronics, tops the list for Singapore with a net worth of $17.6 billion and is the 94th richest billionaire in the world, according to Forbes. The pandemic has led to significant growth for Li’s company, which manufactures ventilators, leading to a rise in demand and an increase in his net worth.
Li Xiting’s hometown is in Anhui. He was born in 1951 into a normal family in Lijun Village, Dangshan. It’s also a legendary story; he not only served as a construction soldier, but also repaired tunnels and worked as a worker for 4 years. Under the heavy pressure of life, he entered the China University of Science and Technology physics department at the age of 22. After graduation, he was assigned to work at the Wuhan Institute of Physics for 11 years. Then he joined Shenzhen Ankon, China’s earliest high-tech medical equipment company, and entered the medical equipment industry. At the age of 40, Li Xiting began to create Medtronic. In the second year, the company developed China’s first blood oxygen saturation monitor, and then gradually occupied the domestic middle and low-end market, exploring the “Made in China" alternative. In 2006, Medtronic was listed on the NYSE. However, due to the company’s long-term undervaluation, it chose to privatize and delist in 2016. It wasn’t until October 2018 that Medtronic returned to A-shares, which were well received by investors, with the stock price reaching a high of RMB 500 per share. Before delisting from the NYSE, Li Xiting changed his nationality. Public information shows that in the documents submitted on September 10, 2015, Li Xiting was still Chinese. But in the documents dated November 3, 2015, Li Xiting became a Singaporean. It can be inferred that Li Xiting joined Singaporean nationality between September 10, 2015 and November 3, 2015.
Looking back on Singapore’s rich list, there are countless Chinese immigrants like Li Xiting, who have played out a Chinese immigrant rich war. The most familiar one is Zhang Yong, the founder of Haidilao. On the rich list, Zhang Yong and his wife’s wealth are $7.7 billion.
Forrest Li (Li Xiaodong) is a successful entrepreneur who has made it to the annual Forbes World Billionaire List for 2022, despite a decline in his net worth from $15.9 billion in August 2021 to $6.5 billion in March 2022. He is the founder and chief executive of online gaming firm and e-commerce firm Sea Limited, and is ranked 11th on the list with a net worth of $4.2 billion. He was born in Tianjin and graduated from Shanghai Jiao Tong University, later emigrating to Singapore and founding Sea Limited (Dong Hai Group), a leading internet company in Southeast Asia. Other notable billionaires on the list include Ye Gang, ranked 13th with a net worth of $2.8 billion, who is the COO of East Sea Group and Wei Chenghui, ranked 15th with a net worth of $2.5 billion, who is the Chairman of food manufacturer Tee Yih Jia and known as Singapore’s “pancake king”. The passage also highlights that there are many other executives who have chosen to purchase assets and have permanent residence in Singapore, such as Zhang Xin, wife of SOHO founder Pan Shi Yi, Sun Hongbin, Chairman of China Vanke, Shi Zhenrong, a solar energy magnate, Jack Ma’s right-hand man Eric Jing, have all been reported as having immigrated to Singapore.
Many business executives, in addition to the billionaires mentioned earlier, have also chosen to own assets and have permanent residence in Singapore. This is evident in the case of Jack Ma, known as the “father of Taobao,” who has obtained permanent residency in Singapore. Other partners of Alibaba such as Yu Yongfu and Sun Tongyu have also made Singapore their permanent residence. An example of this trend is seen in Yu Yongfu’s purchase of a top-floor duplex apartment in Singapore for SGD 26 million at the end of 2020. Another example is Alibaba co-founder and senior vice president Joseph Tsai, who bought a bungalow in the prestigious Goodwood Park area of Singapore for SGD 50 million in 2018. It is clear that the wealthy are no longer surprised by their decision to immigrate to Singapore.